Source: Zillow
Home Values Continue to Climb in April
Rents Rise in Three-Quarters of Markets, According to April Zillow Real Estate Market Reports
SEATTLE, May 25, 2012 /PRNewswire/ -- National home values rose for the second month in a row, climbing 0.7 percent from March to a Zillow Home Value Index[i] of $147,300. This is the largest monthly increase in home values since January 2006, when they rose 0.8 percent, according to the April Zillow® Real Estate Market Reports[ii].
Rents also rose from March to April, increasing 1.6 percent, according to the Zillow Rent Index[iii]. Rents rose in 78 percent of the 178 markets covered by Zillow.
Home values rose significantly in the Miami-Fort Lauderdale and Phoenix metro areas, rising 1.6 and 1.9 percent, respectively. However, values continued to fall in hard-hit markets such as Atlanta, where home values declined 0.7 percent.
"The housing market continues to show positive signs, with home values increasing significantly in April," said Zillow Chief Economist Dr. Stan Humphries. "The recovery is moving in the right direction, but we caution that negative equity will cast a long shadow over the housing market. With almost one-third of homeowners with mortgages underwater and unable to sell their homes, inventory is having a hard time keeping up with increasing demand in many areas. We'll continue to watch this signal as increasing home values turn from a blip into a trend."
Foreclosures continued to decline in April, with 6.8 out of every 10,000 homes in the country being foreclosed. That was down from 8 out of every 10,000 in March.
URL to original article: http://zillow.mediaroom.com/index.php?s=159&item=279
For further information on Fresno Real Estate check: http://www.londonpropeties.com
Thursday, May 31, 2012
Home automation, energy manage-ment 'in' ... home theatres 'out'
Source: Cepro
Digging deeper into the recently released State of the Builder Technology Market Study, finally we see certain energy-related technologies are very, very hot among home builders, but others are cold as ice. It took the worst housing recession ever to enlighten them, but the highest percentage of projects ever are now installing home automation, lighting control, multiroom audio and energy management systems. According to the joint Consumer Electronics Association (CEA) and the National Association of Home Builders (NAHB) study, the percentage of builders installing energy management systems in new homes has risen 133 percent in two years (from 6 percent to 14 percent of new homes). Moreover, the percentage of builders actually offering energy management grew from just 40 percent in 2009 to 59 percent in 2011. The percentage of new homes with multiroom audio has also more than doubled, while home automation and lighting control have also doubled. Here are the specific trends. Of course, the data is tempered with the knowledge that all of those percentages are based on an extremely low number of new homes built compared to five years ago. The number of new housing starts in 2011 was approximately 550,000, the lowest since World War II. Energy Management 2009: 6% 2010: 10% 2011: 14% Home Automation 2009: 5% 2010: 5% 2011: 10% Lighting Control 2009: 6% 2010: 7% 2011: 12% Multiroom Audio 2009: 11% 2010: 12% 2011: 23% "The long-term trend is that technology is here to stay," says Chris Ely, manager of industry analysis for CEA. "The category of audio has seen a resurgence across the board." It should be noted that the data from the study is not strictly related to new home construction. Ely notes that the average respondent to the study did 46 new residential "projects" in 2011 of either new or remodel single-family homes or MDUs. Meanwhile, that same builder did an average of 34 light commercial or remodeling projects. Other positive signs revealed by Ely are: Fewer builders are saying demand is dropping for home technologies. The percentage of builders proactively marketing home tech is rising. There was a slight bump of $100 in the overall amount builders spend to install home technology (from $2300 in 2010 to $2400 in 2011). Of course, that is compared to $5,000 that builders said they spent on home technology back in 2006. Structured wiring is the only category that showed a price increase in 2011. The percentage of builders installing home theater is stagnant with no growth in the category. The study is always a glimpse into the minds of builders. And for this year, it looks like builders are finally getting it.
URL to original article: http://www.builderonline.com/builder-pulse/home-automation--energy-manage-ment--in------home-theatres--out-.aspx?cid=BP:053112:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Digging deeper into the recently released State of the Builder Technology Market Study, finally we see certain energy-related technologies are very, very hot among home builders, but others are cold as ice. It took the worst housing recession ever to enlighten them, but the highest percentage of projects ever are now installing home automation, lighting control, multiroom audio and energy management systems. According to the joint Consumer Electronics Association (CEA) and the National Association of Home Builders (NAHB) study, the percentage of builders installing energy management systems in new homes has risen 133 percent in two years (from 6 percent to 14 percent of new homes). Moreover, the percentage of builders actually offering energy management grew from just 40 percent in 2009 to 59 percent in 2011. The percentage of new homes with multiroom audio has also more than doubled, while home automation and lighting control have also doubled. Here are the specific trends. Of course, the data is tempered with the knowledge that all of those percentages are based on an extremely low number of new homes built compared to five years ago. The number of new housing starts in 2011 was approximately 550,000, the lowest since World War II. Energy Management 2009: 6% 2010: 10% 2011: 14% Home Automation 2009: 5% 2010: 5% 2011: 10% Lighting Control 2009: 6% 2010: 7% 2011: 12% Multiroom Audio 2009: 11% 2010: 12% 2011: 23% "The long-term trend is that technology is here to stay," says Chris Ely, manager of industry analysis for CEA. "The category of audio has seen a resurgence across the board." It should be noted that the data from the study is not strictly related to new home construction. Ely notes that the average respondent to the study did 46 new residential "projects" in 2011 of either new or remodel single-family homes or MDUs. Meanwhile, that same builder did an average of 34 light commercial or remodeling projects. Other positive signs revealed by Ely are: Fewer builders are saying demand is dropping for home technologies. The percentage of builders proactively marketing home tech is rising. There was a slight bump of $100 in the overall amount builders spend to install home technology (from $2300 in 2010 to $2400 in 2011). Of course, that is compared to $5,000 that builders said they spent on home technology back in 2006. Structured wiring is the only category that showed a price increase in 2011. The percentage of builders installing home theater is stagnant with no growth in the category. The study is always a glimpse into the minds of builders. And for this year, it looks like builders are finally getting it.
URL to original article: http://www.builderonline.com/builder-pulse/home-automation--energy-manage-ment--in------home-theatres--out-.aspx?cid=BP:053112:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Continuous improve-ment: why remodeling's so hot
Source: Forbes
Even as new and existing home sales and prices climb, homeowners are prioritizing aesthetics before profit, according to the annual Houzz & Home Survey conducted among users of the Houzz app and website. The annual survey surfaces building and remodeling trends in the U.S. and Canada. Among the findings: — Livability trumps value. Among homeowners planning to build, remodel or decorate in the next two years, 86 percent cited “improving the look and feel of the space” as an important driver for remodeling projects, while only 47 percent cited ”increasing home value.” The gap between these priorities was consistent across all income levels and demographic groups. — Saying “no” to loans. Homeowners say they are more likely to cut back in other areas, such as vacations and other big-ticket purchases, than to delay or decrease the budget for their home improvement plans. — Even upscale homeowners taking a hands-on approach. The survey found that while 45 percent of homeowners at upper income levels ($150,000+) are choosing to hire an architect, interior designer, general contractor or another remodeling or decorating professional to complete a project in its entirety, an equal number of them are combining professional help and DIY efforts, a proportion only slightly smaller than the 49 percent taking this combination approach in lower income brackets. “We expected that in this economy Americans’ highest priority would be increasing home value, but instead we found people are focused on pleasing themselves, not the next owner,” said Liza Hausman, vice president of marketing for Houzz. “The good news is the vast majority of people are staying within their means to do so.” Kitchens and bathrooms are the most popular remodeling projects, with 48 percent of respondents planning a bathroom remodel, and 45 percent redoing a kitchen in the next two years. Midwesterners have the highest budgets for kitchen and bath remodels at $30,500 and $13,600 respectively, while the South is allocating the least at $23,800 and $11,600. Other Key Findings: • In the next two years, 72 percent of homeowners surveyed plan to decorate or redecorate, 40 percent plan to remodel or construct an addition, while 10 percent are planning to build a custom home. • Custom homes are popular in the South, where a whopping 21 percent of Jackson, Mississippi homeowners surveyed is building the home of their dreams from scratch. • 57 percent of homeowners surveyed planning to complete a project in the next two years will hire a general contractor, 35 percent a kitchen or bath professional and 32 percent will hire a carpet or flooring professional. Thirty percent are planning to hire an architect, 26 percent an interior designer and 24 percent a landscape architect or designer. • The largest projects in terms of average spend in the last five years were custom home builds ($577,000), complete home remodels ($193,000), pool additions or replacements ($34,000) and kitchen remodels ($25,000)
URL to original article: http://www.builderonline.com/builder-pulse/continuous-improve-ment--why-remodeling-s-so-hot.aspx?cid=BP:053112:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Even as new and existing home sales and prices climb, homeowners are prioritizing aesthetics before profit, according to the annual Houzz & Home Survey conducted among users of the Houzz app and website. The annual survey surfaces building and remodeling trends in the U.S. and Canada. Among the findings: — Livability trumps value. Among homeowners planning to build, remodel or decorate in the next two years, 86 percent cited “improving the look and feel of the space” as an important driver for remodeling projects, while only 47 percent cited ”increasing home value.” The gap between these priorities was consistent across all income levels and demographic groups. — Saying “no” to loans. Homeowners say they are more likely to cut back in other areas, such as vacations and other big-ticket purchases, than to delay or decrease the budget for their home improvement plans. — Even upscale homeowners taking a hands-on approach. The survey found that while 45 percent of homeowners at upper income levels ($150,000+) are choosing to hire an architect, interior designer, general contractor or another remodeling or decorating professional to complete a project in its entirety, an equal number of them are combining professional help and DIY efforts, a proportion only slightly smaller than the 49 percent taking this combination approach in lower income brackets. “We expected that in this economy Americans’ highest priority would be increasing home value, but instead we found people are focused on pleasing themselves, not the next owner,” said Liza Hausman, vice president of marketing for Houzz. “The good news is the vast majority of people are staying within their means to do so.” Kitchens and bathrooms are the most popular remodeling projects, with 48 percent of respondents planning a bathroom remodel, and 45 percent redoing a kitchen in the next two years. Midwesterners have the highest budgets for kitchen and bath remodels at $30,500 and $13,600 respectively, while the South is allocating the least at $23,800 and $11,600. Other Key Findings: • In the next two years, 72 percent of homeowners surveyed plan to decorate or redecorate, 40 percent plan to remodel or construct an addition, while 10 percent are planning to build a custom home. • Custom homes are popular in the South, where a whopping 21 percent of Jackson, Mississippi homeowners surveyed is building the home of their dreams from scratch. • 57 percent of homeowners surveyed planning to complete a project in the next two years will hire a general contractor, 35 percent a kitchen or bath professional and 32 percent will hire a carpet or flooring professional. Thirty percent are planning to hire an architect, 26 percent an interior designer and 24 percent a landscape architect or designer. • The largest projects in terms of average spend in the last five years were custom home builds ($577,000), complete home remodels ($193,000), pool additions or replacements ($34,000) and kitchen remodels ($25,000)
URL to original article: http://www.builderonline.com/builder-pulse/continuous-improve-ment--why-remodeling-s-so-hot.aspx?cid=BP:053112:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, May 30, 2012
Fresno City College beginning home reconstruction class
Source: The Business Journal
Classes will begin June 8 on a program offered at Fresno City College to train students in the work of rehabilitating blighted homes. The six-month program, now recruiting its third cohort, will prepare students for entry-level positions in the rehabilitation, revitalization and reconstruction of pre-existing homes and buildings. Students will also get hands-on experience when they assist in revitalizing blighted neighborhoods like the Lowell neighborhood near downtown Fresno where two homes have already been refurbished. To qualify, students must be at least 18 years old and pass a two-page reading test. No GED or high school diploma is required. Students can apply by calling (559) 442-8233 or by attending an informational meeting being held at 3 p.m. on either May 30, June 4 or June 6 at Fresno City College, Room T-110. Any additional questions can be emailed to tamara.glover@fresnocitycollege.edu.
URL to original article: http://www.thebusinessjournal.com/news/education/2029-fresno-city-college-beginning-home-reconstruction-class
For further information on Fresno Real Estate check: http://www.londonproperties.com
Classes will begin June 8 on a program offered at Fresno City College to train students in the work of rehabilitating blighted homes. The six-month program, now recruiting its third cohort, will prepare students for entry-level positions in the rehabilitation, revitalization and reconstruction of pre-existing homes and buildings. Students will also get hands-on experience when they assist in revitalizing blighted neighborhoods like the Lowell neighborhood near downtown Fresno where two homes have already been refurbished. To qualify, students must be at least 18 years old and pass a two-page reading test. No GED or high school diploma is required. Students can apply by calling (559) 442-8233 or by attending an informational meeting being held at 3 p.m. on either May 30, June 4 or June 6 at Fresno City College, Room T-110. Any additional questions can be emailed to tamara.glover@fresnocitycollege.edu.
URL to original article: http://www.thebusinessjournal.com/news/education/2029-fresno-city-college-beginning-home-reconstruction-class
For further information on Fresno Real Estate check: http://www.londonproperties.com
U.S. housing market gets a spring revival
Leah Schnurr and Jilian Mincer, Reuters May 29, 2012 – 1:14 PM ET | Last Updated: May 29, 2012 2:36 PM ET
NEW YORK –
Kate Carpenter and her husband waited for two years before sensing the time was right to look to buy a home in the suburbs of New York. “This is the first time homes are at an affordable point,” said the freelance writer, 35. She hopes to move her two young daughters out of their rented New York City apartment soon, taking advantage of record low mortgage rates and signs the slump is over. Six years after the housing market began its slide, dragging the U.S. economy into recession, this year’s spring season — traditionally the busiest period for home sales — is shaping up to be the strongest since the crash. Sales rose more than 10% in April from a year earlier and may end the year up by as much as 13%, according to the National Association of Realtors. Prices, which plunged by a third from 2006 according to some measures, are rising in some cities. Realtors report bidding wars, albeit more modest ones than during the bubble years, and buyers are snapping up homes much more quickly than only a few weeks ago. “We have more buyers than we have houses to sell,” said April Bolin, a realtor in Riverside, California, considered one of the epicenters of the U.S. housing crash. “We have multiple bids all the time. I recently sold a property that had 10 offers in three days,” Bolin said.
URL to original article: http://business.financialpost.com/2012/05/29/u-s-housing-market-gets-a-spring-revival/
For further information on Fresno Real Estate check: http://www.londonproperties.com
Kate Carpenter and her husband waited for two years before sensing the time was right to look to buy a home in the suburbs of New York. “This is the first time homes are at an affordable point,” said the freelance writer, 35. She hopes to move her two young daughters out of their rented New York City apartment soon, taking advantage of record low mortgage rates and signs the slump is over. Six years after the housing market began its slide, dragging the U.S. economy into recession, this year’s spring season — traditionally the busiest period for home sales — is shaping up to be the strongest since the crash. Sales rose more than 10% in April from a year earlier and may end the year up by as much as 13%, according to the National Association of Realtors. Prices, which plunged by a third from 2006 according to some measures, are rising in some cities. Realtors report bidding wars, albeit more modest ones than during the bubble years, and buyers are snapping up homes much more quickly than only a few weeks ago. “We have more buyers than we have houses to sell,” said April Bolin, a realtor in Riverside, California, considered one of the epicenters of the U.S. housing crash. “We have multiple bids all the time. I recently sold a property that had 10 offers in three days,” Bolin said.
URL to original article: http://business.financialpost.com/2012/05/29/u-s-housing-market-gets-a-spring-revival/
For further information on Fresno Real Estate check: http://www.londonproperties.com
What to name a new generation of rug rats?
Source: New Geography
This month America’s destiny as a pluralistic democracy took a new and unprecedented turn. First, early in May, USA Today asked Americans what name they thought would be appropriate for the country’s newest generation now moving into grade school classrooms with its unique behavior and perspectives. Plurals is the name suggested by communications research and consulting firm, Frank N. Magid Associates, with only the Apple product related notion of an iGeneration getting more votes. Plurals will be different from Millenials. For one thing they will be the first generation in America that will be majority “minority”, as evidenced by the recent U.S. Census Bureau announcement that more babies born in America in the 12 months between July 2010 and July 2011, were non-white than white. The event occurred about eight years earlier than demographers had predicted it would just a few years ago. The 21st Century pluralistic American society that had often been talked about has arrived. But the question remains whether or not the country’s institutions, and its leadership, will be up to the challenge such a polyglot democracy presents. The Census Bureau predicts that by 2042 the entire population will be less than 50% Caucasian and America will literally be a pluralistic society. This prediction is based upon the current trends for births among different minority groups compared to whites. Racial and ethnic minorities accounted for 91.75% of the nation’s population growth in this century, with Hispanics comprising a majority of this increase. Rather than immigration flows, which are dropping, this growth will be driven largely by higher rates of fertility among non-whites. Based upon the American Community Survey results in 2010, Hispanics have a fertility rate of 2.4 live births per woman compared to only 1.8 among whites. The only other ethnic group to be having babies at a rate greater than what is needed to replace its current numbers is African-Americans with a 2.1 fertility rate. This difference is likely to persist and the gap could easily become wider because of the differences in the age of each population. Twenty-five percent of Hispanic women are in the prime child bearing ages of 20-34, compared to only 19% of non-Hispanic whites. (For both African-Americans and Asians, the percentage is twenty-two). The increasing diversity of both of America’s youngest generations is also reflected in the average age of each population. The average age of America’s white population is 42.3, a full five years older than the overall age of the country’s population. The average age of Hispanics is almost fifteen years younger, 27.6, with the other two population groups closer to the average age of the entire population—blacks at 32.9 and Asians at 35.9. Magid’s research indicated that a majority of Americans were “hopeful and proud” of the country’s increasing diversity, but it was the younger generations, most markedly Plurals, who were more likely to say they were “pleased and energized” by this development. Many older Americans, particularly Baby Boomers and senior citizens, are resisting the changes this dramatic shift is bringing to American society. Already states, such as Arizona, with populations that have the widest disparity between the racial and ethnic makeup of their oldest and youngest generations have experienced bitter political battles over issues such as immigration and education that reflect these divides. The good news is that both Plurals and members of the Millennial generation, born 1982-2003, are positive about this inevitable trend toward a pluralistic society, reflecting their comfort with the diversity in the social circles in which they have grown up. But that doesn’t mean that Plurals look forward to the nation’s future with equanimity. Most Plurals have been raised by parents from the often cynical and consistently skeptical Generation X. This may explain why Magid found a much greater degree of pessimism about living out the American Dream among them than among their older Millennial Generation siblings, a generation that, despite their current challenges, was brought up in the prosperous Reagan-Clinton era and remains characteristically optimistic. The attitudes of Plurals may also reflect the polarized, bitter politics that have characterized the period of Fear, Uncertainty and Doubt (FUD) that has dominated the news during their young life. Whatever the reason, the pessimism of the Plurals must be answered by the nation’s leaders in ways which improve prospects for the nation’s future. One way for this to happen quickly would be for those currently holding power to begin to turn the reins of leadership over to those generations more in tune with the nation’s demographic future. If Plurals’ Xer parents and their Millennial siblings are given the opportunity to shape America’s destiny sooner rather than later, the country just might deliver on the promise of the American Dream for its newest generation.
URL to original article: http://www.builderonline.com/builder-pulse/what-to-name-a-new-generation-of-rug-rats-.aspx
For further information on Fresno Real Estate check: http://www.londonproperties.com
This month America’s destiny as a pluralistic democracy took a new and unprecedented turn. First, early in May, USA Today asked Americans what name they thought would be appropriate for the country’s newest generation now moving into grade school classrooms with its unique behavior and perspectives. Plurals is the name suggested by communications research and consulting firm, Frank N. Magid Associates, with only the Apple product related notion of an iGeneration getting more votes. Plurals will be different from Millenials. For one thing they will be the first generation in America that will be majority “minority”, as evidenced by the recent U.S. Census Bureau announcement that more babies born in America in the 12 months between July 2010 and July 2011, were non-white than white. The event occurred about eight years earlier than demographers had predicted it would just a few years ago. The 21st Century pluralistic American society that had often been talked about has arrived. But the question remains whether or not the country’s institutions, and its leadership, will be up to the challenge such a polyglot democracy presents. The Census Bureau predicts that by 2042 the entire population will be less than 50% Caucasian and America will literally be a pluralistic society. This prediction is based upon the current trends for births among different minority groups compared to whites. Racial and ethnic minorities accounted for 91.75% of the nation’s population growth in this century, with Hispanics comprising a majority of this increase. Rather than immigration flows, which are dropping, this growth will be driven largely by higher rates of fertility among non-whites. Based upon the American Community Survey results in 2010, Hispanics have a fertility rate of 2.4 live births per woman compared to only 1.8 among whites. The only other ethnic group to be having babies at a rate greater than what is needed to replace its current numbers is African-Americans with a 2.1 fertility rate. This difference is likely to persist and the gap could easily become wider because of the differences in the age of each population. Twenty-five percent of Hispanic women are in the prime child bearing ages of 20-34, compared to only 19% of non-Hispanic whites. (For both African-Americans and Asians, the percentage is twenty-two). The increasing diversity of both of America’s youngest generations is also reflected in the average age of each population. The average age of America’s white population is 42.3, a full five years older than the overall age of the country’s population. The average age of Hispanics is almost fifteen years younger, 27.6, with the other two population groups closer to the average age of the entire population—blacks at 32.9 and Asians at 35.9. Magid’s research indicated that a majority of Americans were “hopeful and proud” of the country’s increasing diversity, but it was the younger generations, most markedly Plurals, who were more likely to say they were “pleased and energized” by this development. Many older Americans, particularly Baby Boomers and senior citizens, are resisting the changes this dramatic shift is bringing to American society. Already states, such as Arizona, with populations that have the widest disparity between the racial and ethnic makeup of their oldest and youngest generations have experienced bitter political battles over issues such as immigration and education that reflect these divides. The good news is that both Plurals and members of the Millennial generation, born 1982-2003, are positive about this inevitable trend toward a pluralistic society, reflecting their comfort with the diversity in the social circles in which they have grown up. But that doesn’t mean that Plurals look forward to the nation’s future with equanimity. Most Plurals have been raised by parents from the often cynical and consistently skeptical Generation X. This may explain why Magid found a much greater degree of pessimism about living out the American Dream among them than among their older Millennial Generation siblings, a generation that, despite their current challenges, was brought up in the prosperous Reagan-Clinton era and remains characteristically optimistic. The attitudes of Plurals may also reflect the polarized, bitter politics that have characterized the period of Fear, Uncertainty and Doubt (FUD) that has dominated the news during their young life. Whatever the reason, the pessimism of the Plurals must be answered by the nation’s leaders in ways which improve prospects for the nation’s future. One way for this to happen quickly would be for those currently holding power to begin to turn the reins of leadership over to those generations more in tune with the nation’s demographic future. If Plurals’ Xer parents and their Millennial siblings are given the opportunity to shape America’s destiny sooner rather than later, the country just might deliver on the promise of the American Dream for its newest generation.
URL to original article: http://www.builderonline.com/builder-pulse/what-to-name-a-new-generation-of-rug-rats-.aspx
For further information on Fresno Real Estate check: http://www.londonproperties.com
Betting on the bottom
Source: Wall Street Journal
Tuesday’s S&P/Case-Shiller home-price indexes show a market in which U.S. home prices are still falling, but not as dramatically as in previous months. This is good news for homeowners and home sellers since it indicates that the market is bottoming out. It’s also a sign that the housing downturn, now in its fifth year, may be approaching the end. Nationally, the average sale price of a single-family home fell 1.9% from a year ago, which economists are calling effectively flat. Some markets, including Phoenix, showed major growth in prices, while five of them — Atlanta, Chicago, Las Vegas, New York and Portland — fell to new post-financial crisis lows. Analysts took the news that the Case-Shiller indices, which trail the market by three months, are finally coming around to the fact that the market, generally speaking, is at or near bottom. They remain divided, however, on whether we are likely to see continued improvement in the short term. Here’s what some of them have to say: Stuart Hoffman, chief economist, PNC Financial Services Group: “The housing market is turning around. The big decline in house prices is now over, although prices could see small drops in the near term as more foreclosures hit the market following the agreement earlier this year between the big mortgage servicers, state attorneys general and the Obama administration. Better fundamentals are supporting the improving housing market. Affordability is very high given the price drops and extremely low mortgage rates. Although credit is still tight, it is loosening somewhat. Demand is strengthening with the better labor market and improving consumer confidence…It is notable that the biggest gains were in Phoenix and Miami, two areas that had the biggest price drops during the housing bust (peak-to-trough declines of 56 percent and 51 percent, respectively). In both areas prices are up over the past year. Housing in these areas is now much more affordable than prior to the bust, leading to investor purchases as well as sales to first-time homebuyers and households looking to trade up.” Patrick Newport and Michelle Valverde, U.S. economists, IHS Global Insight: “Are home prices still looking for a bottom, as the Case-Shiller 10 and 20-city composite indices imply, or are they stabilizing, as the Federal Housing Finance Agency numbers indicate? It depends in where you are. Housing prices are still mainly driven by local forces such as job growth and the neighborhood foreclosure rate. Still, in most cities, home prices appear to be stabilizing…Our view is that foreclosures, excess supply, and weak demand will drive home prices as measured by the Case-Shiller indices down a bit further, but that a bottom is in sight.” Ed Stansfield, chief property economist, Capital Economics: “U.S. house prices have now found a floor… Admittedly, the euro-zone crisis poses a major downside risk and there are some signs that the economic recovery has lost some momentum. Nevertheless, the improvement in credit appetite among both households and businesses, as well as the increasingly broad-based nature of the recovery, offer some cause for cautious optimism. For now, we continue to expect any upturn to be modest. And given the likelihood that the divergence between city-level performances will remain high, further house price gains may well be interspersed by the occasional reverse. But unlike the experience of 2009, then temporary tax credits prompted a modest but short-lived rise, we do think that this house recovery will last the course.” Tom Lawler, independent housing analyst: “As I’ve done before, in discussing the seasonally adjusted data I put ‘seasonally’ in quotes, as there have substantial changes in the purported ‘seasonal’ pattern of home prices since the housing market cratered. The reason, of course, is that there is a marked ‘seasonal’ in the distressed-sales share of home sales, which peaks in the late winter months and hits a trough in the summer months. Not coincidentally, the ‘shift’ in the ‘seasonal’ pattern of home prices has been one where home prices are ‘seasonally’ much weaker than they used to be in late winter, and ‘seasonally’ much stronger than they used to be in the summer.” Taking this into account, Mr. Lawler writes that there is a “better-than-even chance” that the Case-Shiller numbers will show an increase next quarter.
URL to original article: http://www.builderonline.com/builder-pulse/betting-on-the-bottom.aspx?cid=BP:053012:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday’s S&P/Case-Shiller home-price indexes show a market in which U.S. home prices are still falling, but not as dramatically as in previous months. This is good news for homeowners and home sellers since it indicates that the market is bottoming out. It’s also a sign that the housing downturn, now in its fifth year, may be approaching the end. Nationally, the average sale price of a single-family home fell 1.9% from a year ago, which economists are calling effectively flat. Some markets, including Phoenix, showed major growth in prices, while five of them — Atlanta, Chicago, Las Vegas, New York and Portland — fell to new post-financial crisis lows. Analysts took the news that the Case-Shiller indices, which trail the market by three months, are finally coming around to the fact that the market, generally speaking, is at or near bottom. They remain divided, however, on whether we are likely to see continued improvement in the short term. Here’s what some of them have to say: Stuart Hoffman, chief economist, PNC Financial Services Group: “The housing market is turning around. The big decline in house prices is now over, although prices could see small drops in the near term as more foreclosures hit the market following the agreement earlier this year between the big mortgage servicers, state attorneys general and the Obama administration. Better fundamentals are supporting the improving housing market. Affordability is very high given the price drops and extremely low mortgage rates. Although credit is still tight, it is loosening somewhat. Demand is strengthening with the better labor market and improving consumer confidence…It is notable that the biggest gains were in Phoenix and Miami, two areas that had the biggest price drops during the housing bust (peak-to-trough declines of 56 percent and 51 percent, respectively). In both areas prices are up over the past year. Housing in these areas is now much more affordable than prior to the bust, leading to investor purchases as well as sales to first-time homebuyers and households looking to trade up.” Patrick Newport and Michelle Valverde, U.S. economists, IHS Global Insight: “Are home prices still looking for a bottom, as the Case-Shiller 10 and 20-city composite indices imply, or are they stabilizing, as the Federal Housing Finance Agency numbers indicate? It depends in where you are. Housing prices are still mainly driven by local forces such as job growth and the neighborhood foreclosure rate. Still, in most cities, home prices appear to be stabilizing…Our view is that foreclosures, excess supply, and weak demand will drive home prices as measured by the Case-Shiller indices down a bit further, but that a bottom is in sight.” Ed Stansfield, chief property economist, Capital Economics: “U.S. house prices have now found a floor… Admittedly, the euro-zone crisis poses a major downside risk and there are some signs that the economic recovery has lost some momentum. Nevertheless, the improvement in credit appetite among both households and businesses, as well as the increasingly broad-based nature of the recovery, offer some cause for cautious optimism. For now, we continue to expect any upturn to be modest. And given the likelihood that the divergence between city-level performances will remain high, further house price gains may well be interspersed by the occasional reverse. But unlike the experience of 2009, then temporary tax credits prompted a modest but short-lived rise, we do think that this house recovery will last the course.” Tom Lawler, independent housing analyst: “As I’ve done before, in discussing the seasonally adjusted data I put ‘seasonally’ in quotes, as there have substantial changes in the purported ‘seasonal’ pattern of home prices since the housing market cratered. The reason, of course, is that there is a marked ‘seasonal’ in the distressed-sales share of home sales, which peaks in the late winter months and hits a trough in the summer months. Not coincidentally, the ‘shift’ in the ‘seasonal’ pattern of home prices has been one where home prices are ‘seasonally’ much weaker than they used to be in late winter, and ‘seasonally’ much stronger than they used to be in the summer.” Taking this into account, Mr. Lawler writes that there is a “better-than-even chance” that the Case-Shiller numbers will show an increase next quarter.
URL to original article: http://www.builderonline.com/builder-pulse/betting-on-the-bottom.aspx?cid=BP:053012:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, May 29, 2012
Rumor of demise of McMansions premature?
Source: SmartMoney
The rise in new home sales is being driven in part by demand for the kind of larger and more luxurious custom-built houses that had fallen out of favor in recent years: so-called McMansions. Data released on Wednesday shows that sales of newly built homes rose 3.3% in April from a month prior and 9.9% from a year ago. While the figures do not disclose the size of these new homes, home builders credited the McMansion side of the spectrum. That’s a reversal from recent trends: During the recession the size of homes got smaller, shrinking 3.4% to 2,382 square feet, according to the US Census. But last year that size jumped 5.2% to 2,505 – the largest in at least four years. In many regions of the country, homes are even larger. Home builders say the trend toward larger new homes picked up more this year. Michael Villane, president of Lead Dog Builders, a custom home builder in Rumson, N.J., says he’s currently building homes with sticker prices of $1.5 to $4 million, up from the $1.3 to $1.5 million his clients were commissioning a year ago. While the average size of homes in the region is 3,500 to 5,500 square feet, he says the orders he’s received this year are for 7,000 plus-square feet homes. Though there’s no official definition of the word, many define McMansions as new homes larger than 3,000 square feet. In some cases, home builders are enlarging homes even if clients don’t ask for it. Michael Dubb, CEO and president of The Beechwood Organization, a New York-based home building company, says his firm is building houses with larger kitchens, higher ceilings, and overall more spacious rooms in an attempt to appeal to buyers who might be on the fence about buying a new home. By building bigger without raising the price, he says, the company is hoping to increase its sales. (He says they’re not downgrading quality, but rather cutting into their profits in order to make more sales.) In addition to bigger homes, builders say custom homes as a whole are becoming more popular. According to the most recent data available from the National Association of Home Builders, custom homes accounted for nearly 30% of all housing starts in 2011. That’s up from just 19% during the building peak in 2005. “Buyers are putting a lot more attention to detail – they’re not just buying a big box,” says Villane. So far this year, he says clients’ requests have become more customized to include crown molding, built-in microwaves, and double ovens. To be sure, the total number of custom-built homes is lower than it was during the peak of the housing boom. But because smaller home projects have plummeted even more, these high-end homes now account for a larger share of building overall, says Steve Melman, director of economic services at the National Association of Home Builders. Home builders typically rely on high-income buyers to get through downturns, he says. Requests for large new homes come at a challenging time for the overall new home market. New home sales hit a 51-year low of 307,000 last year, according to the NAHB. That figure is expected to jump 18% this year, but it would still be way off its peak of 1.3 million homes in 2005. Experts say high-income buyers don’t have to deal with the borrowing headaches the average buyer encounters. They’re less likely to need a mortgage, and those who do tend to have the high credit scores and sizable down payments needed to qualify, says Jack McCabe, an independent housing analyst in Deerfield Beach, Fla. Wealthy buyers are also more likely to pass other hurdles, like low appraisals, which have been derailing new home sales. (Appraisers have been pricing many homes at values below the cost of construction.)
URL to original article: http://www.builderonline.com/builder-pulse/rumor-of-demise-of-mcmansions-premature-.aspx?cid=BP:052912:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
The rise in new home sales is being driven in part by demand for the kind of larger and more luxurious custom-built houses that had fallen out of favor in recent years: so-called McMansions. Data released on Wednesday shows that sales of newly built homes rose 3.3% in April from a month prior and 9.9% from a year ago. While the figures do not disclose the size of these new homes, home builders credited the McMansion side of the spectrum. That’s a reversal from recent trends: During the recession the size of homes got smaller, shrinking 3.4% to 2,382 square feet, according to the US Census. But last year that size jumped 5.2% to 2,505 – the largest in at least four years. In many regions of the country, homes are even larger. Home builders say the trend toward larger new homes picked up more this year. Michael Villane, president of Lead Dog Builders, a custom home builder in Rumson, N.J., says he’s currently building homes with sticker prices of $1.5 to $4 million, up from the $1.3 to $1.5 million his clients were commissioning a year ago. While the average size of homes in the region is 3,500 to 5,500 square feet, he says the orders he’s received this year are for 7,000 plus-square feet homes. Though there’s no official definition of the word, many define McMansions as new homes larger than 3,000 square feet. In some cases, home builders are enlarging homes even if clients don’t ask for it. Michael Dubb, CEO and president of The Beechwood Organization, a New York-based home building company, says his firm is building houses with larger kitchens, higher ceilings, and overall more spacious rooms in an attempt to appeal to buyers who might be on the fence about buying a new home. By building bigger without raising the price, he says, the company is hoping to increase its sales. (He says they’re not downgrading quality, but rather cutting into their profits in order to make more sales.) In addition to bigger homes, builders say custom homes as a whole are becoming more popular. According to the most recent data available from the National Association of Home Builders, custom homes accounted for nearly 30% of all housing starts in 2011. That’s up from just 19% during the building peak in 2005. “Buyers are putting a lot more attention to detail – they’re not just buying a big box,” says Villane. So far this year, he says clients’ requests have become more customized to include crown molding, built-in microwaves, and double ovens. To be sure, the total number of custom-built homes is lower than it was during the peak of the housing boom. But because smaller home projects have plummeted even more, these high-end homes now account for a larger share of building overall, says Steve Melman, director of economic services at the National Association of Home Builders. Home builders typically rely on high-income buyers to get through downturns, he says. Requests for large new homes come at a challenging time for the overall new home market. New home sales hit a 51-year low of 307,000 last year, according to the NAHB. That figure is expected to jump 18% this year, but it would still be way off its peak of 1.3 million homes in 2005. Experts say high-income buyers don’t have to deal with the borrowing headaches the average buyer encounters. They’re less likely to need a mortgage, and those who do tend to have the high credit scores and sizable down payments needed to qualify, says Jack McCabe, an independent housing analyst in Deerfield Beach, Fla. Wealthy buyers are also more likely to pass other hurdles, like low appraisals, which have been derailing new home sales. (Appraisers have been pricing many homes at values below the cost of construction.)
URL to original article: http://www.builderonline.com/builder-pulse/rumor-of-demise-of-mcmansions-premature-.aspx?cid=BP:052912:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, May 24, 2012
Nationwide Housing Affordability Reaches New Record High
Source: National Association of Home Builders
Tight Credit Remains Primary Obstacle for Buyers May 17, 2012 -
Nationwide housing affordability hit a new record high for a second consecutive quarter in the first three months of this year, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), released today. Yet tight lending conditions continue to pose a major obstacle to many prospective home buyers. The latest HOI data reveal that 77.5 percent of all new and existing homes that were sold in this year’s first quarter were affordable to families earning the national median income of $65,000. This beats the previous record set in the final quarter of 2011, when 75.9 percent of homes sold were affordable to median-income earners. “Homes in this year’s first quarter were more affordable than they have been at any time in more than 20 years, yet many potential sales are not happening because of overly tight lending conditions that are keeping hardworking families from obtaining a suitable mortgage,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “Without this significant hurdle, the housing and economic recovery could be proceeding at a much stronger pace.” The most affordable major housing market in this year’s first quarter was Indianapolis-Carmel, Ind., where 95.8 percent of homes sold during the period were affordable to households earning the area’s median family income of $66,900. Also ranking among the most affordable major housing markets in respective order were Dayton, Ohio; Lakeland-Winter Haven, Fla.; Modesto, Calif.; Grand Rapids-Wyoming, Mich.; and Buffalo-Niagara Falls, N.Y.; the latter two of which tied for fifth place. Among smaller housing markets, Cumberland, Md.-W.Va. topped the affordability chart for the first time in this year’s first quarter. There, 99 percent of homes sold during the first quarter were affordable to families earning the area’s median income of $53,000. Other smaller housing markets at the top of the index include Fairbanks, Alaska; Wheeling, W.Va.; Kokomo, Ind.; and Davenport-Moline-Rock Island, Iowa-Ill., respectively. In New York-White Plains-Wayne, N.Y.-N.J., which retained the title of the least affordable major housing market for a 16th consecutive quarter, just 31.5 percent of homes sold in the first three months of this year were affordable to those earning the area’s median income of $68,200. Other major metros at the bottom of the affordability chart included San Francisco-San Mateo-Redwood City, Calif.; Honolulu; Los Angeles-Long Beach-Glendale, Calif.; and Santa Ana-Anaheim-Irvine, Calif., respectively. Ocean City, N.J., was the least affordable smaller housing market on the list, with 45.9 percent of homes sold in the first quarter affordable to families earning the median income of $71,100. Other small metros at the bottom of the list included Santa Cruz-Watsonville, Calif.; San Luis Obispo-Paso Robles, Calif.; Santa Barbara-Santa Maria-Goleta, Calif.; and Laredo, Texas. Please visit www.nahb.org/hoi for tables, historic data and details.
EDITOR’S NOTE: The NAHB/Wells Fargo Housing Opportunity Index is a measure of the percentage of homes sold in a given area that are affordable to families earning that area’s median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board. The NAHB/Wells Fargo HOI is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public.
URL to original article: http://www.nahb.org/news_details.aspx?sectionID=122&newsID=15306
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tight Credit Remains Primary Obstacle for Buyers May 17, 2012 -
Nationwide housing affordability hit a new record high for a second consecutive quarter in the first three months of this year, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), released today. Yet tight lending conditions continue to pose a major obstacle to many prospective home buyers. The latest HOI data reveal that 77.5 percent of all new and existing homes that were sold in this year’s first quarter were affordable to families earning the national median income of $65,000. This beats the previous record set in the final quarter of 2011, when 75.9 percent of homes sold were affordable to median-income earners. “Homes in this year’s first quarter were more affordable than they have been at any time in more than 20 years, yet many potential sales are not happening because of overly tight lending conditions that are keeping hardworking families from obtaining a suitable mortgage,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “Without this significant hurdle, the housing and economic recovery could be proceeding at a much stronger pace.” The most affordable major housing market in this year’s first quarter was Indianapolis-Carmel, Ind., where 95.8 percent of homes sold during the period were affordable to households earning the area’s median family income of $66,900. Also ranking among the most affordable major housing markets in respective order were Dayton, Ohio; Lakeland-Winter Haven, Fla.; Modesto, Calif.; Grand Rapids-Wyoming, Mich.; and Buffalo-Niagara Falls, N.Y.; the latter two of which tied for fifth place. Among smaller housing markets, Cumberland, Md.-W.Va. topped the affordability chart for the first time in this year’s first quarter. There, 99 percent of homes sold during the first quarter were affordable to families earning the area’s median income of $53,000. Other smaller housing markets at the top of the index include Fairbanks, Alaska; Wheeling, W.Va.; Kokomo, Ind.; and Davenport-Moline-Rock Island, Iowa-Ill., respectively. In New York-White Plains-Wayne, N.Y.-N.J., which retained the title of the least affordable major housing market for a 16th consecutive quarter, just 31.5 percent of homes sold in the first three months of this year were affordable to those earning the area’s median income of $68,200. Other major metros at the bottom of the affordability chart included San Francisco-San Mateo-Redwood City, Calif.; Honolulu; Los Angeles-Long Beach-Glendale, Calif.; and Santa Ana-Anaheim-Irvine, Calif., respectively. Ocean City, N.J., was the least affordable smaller housing market on the list, with 45.9 percent of homes sold in the first quarter affordable to families earning the median income of $71,100. Other small metros at the bottom of the list included Santa Cruz-Watsonville, Calif.; San Luis Obispo-Paso Robles, Calif.; Santa Barbara-Santa Maria-Goleta, Calif.; and Laredo, Texas. Please visit www.nahb.org/hoi for tables, historic data and details.
EDITOR’S NOTE: The NAHB/Wells Fargo Housing Opportunity Index is a measure of the percentage of homes sold in a given area that are affordable to families earning that area’s median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board. The NAHB/Wells Fargo HOI is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public.
URL to original article: http://www.nahb.org/news_details.aspx?sectionID=122&newsID=15306
For further information on Fresno Real Estate check: http://www.londonproperties.com
April Existing-Home Sales Up, Prices Rise Again
Source: National Association of Realtors
WASHINGTON (May 22, 2012) –
Existing-home sales rose in April and remain above a year ago, while home prices continued to rise, according to the National Association of Realtors®. The improvements in sales and prices were broad based across all regions. Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 3.4 percent to a seasonally adjusted annual rate of 4.62 million in April from a downwardly revised 4.47 million in March, and are 10.0 percent higher than the 4.20 million-unit level in April 2011. Lawrence Yun, NAR chief economist, said the housing recovery is underway. “It is no longer just the investors who are taking advantage of high affordability conditions. A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices,” he said. “The general downtrend in both listed and shadow inventory has shifted from a buyers’ market to one that is much more balanced, but in some areas it has become a seller’s market.” Total housing inventory at the end of April rose 9.5 percent to 2.54 million existing homes available for sale, a seasonal increase which represents a 6.6-month supply2 at the current sales pace, up from a 6.2-month supply in March. Listed inventory is 20.6 percent below a year ago when there was a 9.1-month supply; the record for unsold inventory was 4.04 million in July 2007. “A diminishing share of foreclosed property sales is helping home values. Moreover, an acute shortage of inventory in certain markets is leading to multiple biddings and escalating price conditions,” Yun said. He notes some areas with tight supply include the Washington, D.C., area; Miami; Naples, Fla.; North Dakota; Phoenix; Orange County, Calif.; and Seattle. “We expect stronger price increases in most of these areas.” The national median existing-home price3 for all housing types jumped 10.1 percent to $177,400 in April from a year ago; the March price showed an upwardly revised 3.1 percent annual improvement. “This is the first time we’ve had back-to-back price increases from a year earlier since June and July of 2010 when the gains were less than one percent,” Yun said. “For the year we’re looking for a modest overall price gain of 1.0 to 2.0 percent, with stronger improvement in 2013.” Distressed homes4 – foreclosures and short sales sold at deep discounts – accounted for 28 percent of April sales (17 percent were foreclosures and 11 percent were short sales), down from 29 percent in March and 37 percent in April 2011. Foreclosures sold for an average discount of 21 percent below market value in April, while short sales were discounted 14 percent. NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said home buyers should look into financing in the early stages of their search process. “With the tight lending environment it’s a good idea to consult with a Realtor® about mortgages and program options in your area, and tips for boosting your credit score well in advance of making an offer on a home,” he said. “It helps to go into the process knowing what it takes to succeed.” According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage declined to 3.91 percent in April from 3.95 percent in March; the rate was 4.84 percent in April 2011. Last week the 30-year fixed rate dropped to a record weekly low of 3.79 percent; recordkeeping began in 1971. First-time buyers rose to 35 percent of purchasers in April from 33 percent in March; they were 36 percent in April 2011. All-cash sales fell to 29 percent of transactions in April from 32 percent in March; they were 31 percent in April 2011. Investors, who account for the bulk of cash sales, purchased 20 percent of homes in April, compared with 21 percent in March and 20 percent in April 2011. Single-family home sales rose 3.0 percent to a seasonally adjusted annual rate of 4.09 million in April from 3.97 million in March, and are 9.9 percent higher than the 3.72 million-unit pace a year ago. The median existing single-family home price was $178,000 in April, up 10.4 percent from April 2011. Existing condominium and co-op sales increased 6.0 percent to a seasonally adjusted annual rate of 530,000 in April from 500,000 in March, and are 10.4 percent above the 480,000-unit level in April 2011. The median existing condo price was $172,900 in April, which is 8.1 percent above a year ago. Regionally, existing-home sales in the Northeast rose 5.1 percent to an annual level of 620,000 in April and are 19.2 percent higher than a year ago. The median price in the Northeast was $256,600, up 8.8 percent from April 2011. Existing-home sales in the Midwest increased 1.0 percent in April to a pace of 1.03 million and are 14.4 percent above April 2011. The median price in the Midwest was $141,400, up 7.4 percent from a year ago. In the South, existing-home sales rose 3.5 percent to an annual level of 1.79 million in April and are 6.5 percent higher than a year ago. The median price in the South was $153,400, up 8.0 percent from April 2011. Existing-home sales in the West increased 4.4 percent to an annual pace of 1.18 million in April and are 7.3 percent above April 2011. The median price in the West was $221,700, a surge of 15.9 percent from a year ago. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. # # # NOTE: For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology. 1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from multiple listing services. Changes in sales trends outside of MLSs are not captured in the monthly series. A rebenchmarking of home sales is done periodically using other sources to assess the overall home sales trend, including sales not reported by MLSs. Existing-home sales differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger sample – about 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions. The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns. Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos. 2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions). 3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported. 4Distressed sales (foreclosures and short sales), all-cash transactions, investors and first-time buyers and are from a monthly survey for the Realtors® Confidence Index, posted at Realtor.org. The Pending Home Sales Index for April will be released May 30 and existing-home sales for May is scheduled for June 21; release times are 10:00 a.m. EDT. Information about NAR is available at www.realtor.org. News releases are posted in the website’s “News and Commentary” tab. Statistical data in this release, as well as other tables and surveys, are posted in the “Research and Statistics” tab of www.realtor.org.
URL to original article: http://www.realtor.org/news-releases/2012/05/april-existing-home-sales-up-prices-rise-again
For further information on Fresno Real Estate check: http://www.londonproperties.com
Existing-home sales rose in April and remain above a year ago, while home prices continued to rise, according to the National Association of Realtors®. The improvements in sales and prices were broad based across all regions. Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 3.4 percent to a seasonally adjusted annual rate of 4.62 million in April from a downwardly revised 4.47 million in March, and are 10.0 percent higher than the 4.20 million-unit level in April 2011. Lawrence Yun, NAR chief economist, said the housing recovery is underway. “It is no longer just the investors who are taking advantage of high affordability conditions. A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices,” he said. “The general downtrend in both listed and shadow inventory has shifted from a buyers’ market to one that is much more balanced, but in some areas it has become a seller’s market.” Total housing inventory at the end of April rose 9.5 percent to 2.54 million existing homes available for sale, a seasonal increase which represents a 6.6-month supply2 at the current sales pace, up from a 6.2-month supply in March. Listed inventory is 20.6 percent below a year ago when there was a 9.1-month supply; the record for unsold inventory was 4.04 million in July 2007. “A diminishing share of foreclosed property sales is helping home values. Moreover, an acute shortage of inventory in certain markets is leading to multiple biddings and escalating price conditions,” Yun said. He notes some areas with tight supply include the Washington, D.C., area; Miami; Naples, Fla.; North Dakota; Phoenix; Orange County, Calif.; and Seattle. “We expect stronger price increases in most of these areas.” The national median existing-home price3 for all housing types jumped 10.1 percent to $177,400 in April from a year ago; the March price showed an upwardly revised 3.1 percent annual improvement. “This is the first time we’ve had back-to-back price increases from a year earlier since June and July of 2010 when the gains were less than one percent,” Yun said. “For the year we’re looking for a modest overall price gain of 1.0 to 2.0 percent, with stronger improvement in 2013.” Distressed homes4 – foreclosures and short sales sold at deep discounts – accounted for 28 percent of April sales (17 percent were foreclosures and 11 percent were short sales), down from 29 percent in March and 37 percent in April 2011. Foreclosures sold for an average discount of 21 percent below market value in April, while short sales were discounted 14 percent. NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said home buyers should look into financing in the early stages of their search process. “With the tight lending environment it’s a good idea to consult with a Realtor® about mortgages and program options in your area, and tips for boosting your credit score well in advance of making an offer on a home,” he said. “It helps to go into the process knowing what it takes to succeed.” According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage declined to 3.91 percent in April from 3.95 percent in March; the rate was 4.84 percent in April 2011. Last week the 30-year fixed rate dropped to a record weekly low of 3.79 percent; recordkeeping began in 1971. First-time buyers rose to 35 percent of purchasers in April from 33 percent in March; they were 36 percent in April 2011. All-cash sales fell to 29 percent of transactions in April from 32 percent in March; they were 31 percent in April 2011. Investors, who account for the bulk of cash sales, purchased 20 percent of homes in April, compared with 21 percent in March and 20 percent in April 2011. Single-family home sales rose 3.0 percent to a seasonally adjusted annual rate of 4.09 million in April from 3.97 million in March, and are 9.9 percent higher than the 3.72 million-unit pace a year ago. The median existing single-family home price was $178,000 in April, up 10.4 percent from April 2011. Existing condominium and co-op sales increased 6.0 percent to a seasonally adjusted annual rate of 530,000 in April from 500,000 in March, and are 10.4 percent above the 480,000-unit level in April 2011. The median existing condo price was $172,900 in April, which is 8.1 percent above a year ago. Regionally, existing-home sales in the Northeast rose 5.1 percent to an annual level of 620,000 in April and are 19.2 percent higher than a year ago. The median price in the Northeast was $256,600, up 8.8 percent from April 2011. Existing-home sales in the Midwest increased 1.0 percent in April to a pace of 1.03 million and are 14.4 percent above April 2011. The median price in the Midwest was $141,400, up 7.4 percent from a year ago. In the South, existing-home sales rose 3.5 percent to an annual level of 1.79 million in April and are 6.5 percent higher than a year ago. The median price in the South was $153,400, up 8.0 percent from April 2011. Existing-home sales in the West increased 4.4 percent to an annual pace of 1.18 million in April and are 7.3 percent above April 2011. The median price in the West was $221,700, a surge of 15.9 percent from a year ago. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. # # # NOTE: For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology. 1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from multiple listing services. Changes in sales trends outside of MLSs are not captured in the monthly series. A rebenchmarking of home sales is done periodically using other sources to assess the overall home sales trend, including sales not reported by MLSs. Existing-home sales differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger sample – about 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions. The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns. Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos. 2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions). 3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported. 4Distressed sales (foreclosures and short sales), all-cash transactions, investors and first-time buyers and are from a monthly survey for the Realtors® Confidence Index, posted at Realtor.org. The Pending Home Sales Index for April will be released May 30 and existing-home sales for May is scheduled for June 21; release times are 10:00 a.m. EDT. Information about NAR is available at www.realtor.org. News releases are posted in the website’s “News and Commentary” tab. Statistical data in this release, as well as other tables and surveys, are posted in the “Research and Statistics” tab of www.realtor.org.
URL to original article: http://www.realtor.org/news-releases/2012/05/april-existing-home-sales-up-prices-rise-again
For further information on Fresno Real Estate check: http://www.londonproperties.com
US home sales up across the country, hopeful sign
Source: The Seattle Times
Americans are buying more homes in every region of the country, the latest indication that the housing market could be on the mend.
By MARTIN CRUTSINGER AP Economics Writer
WASHINGTON — Americans are buying more homes in every region of the country, the latest indication that the housing market could be on the mend. An increasing portion of those sales are from first-time buyers, who are critical to a housing recovery. Sales of previously occupied rose 3.4 percent in April from March to a seasonally adjusted annual rate of 4.62 million, the National Association of Realtors said Tuesday. That nearly matches January's pace of 4.63 million -the best in two years. It is still well below the nearly 6 million that most economists equate with healthy markets. A pickup in hiring and cheaper mortgages, combined with lower home prices in most markets, has made home buying more attractive. While many economists acknowledged that the market has a long way to go, most said the April sales report was encouraging. "The trend in sales is upward, and we think it has a good deal further to go over the next few months as payrolls pick up further and mortgage availability improves," said Ian Shepherdson, chief U.S. economist for High Frequency Economics. Sales rose last month from March in all regions of the country. They increased 5.1 percent rise in the Northeast, 3.5 percent in the South, 4.4 percent in the West and 1 percent in the Midwest. And more first-time buyers entered the market. In April, they made up 35 percent of sales. That's up from 32 percent in March. "First-time homebuyers are slowly making their way back," said Jennifer Lee, an economist at BMO Capital Markets. "That is still below the 40 percent-to-45 percent range during healthy times, but the highest in almost half a year." The report measures completed sales. A sale typically closes a month or two after a buyer signs a contract to buy a home. But a growing number of buyers in recent months have been investors who pay cash, which speeds up the process. The number of buyers who signed contracts to buy homes in April rose to the highest level since April 2010, when buyers could qualify for a federal home-buying tax credit. The increase suggests sales could keep rising in May and June. "People believe that interest rates are as low as they are going to get and that prices have hit rock bottom. So they are getting off the fence," said Tony Geraci, the owner of Century21 Homestar, a real estate firm in Cleveland. Geraci said sales at his firm are up about 15 percent over last year. He credited that to a milder winter this year, better housing conditions and an improving economy. Homes at risk of foreclosure accounted for 28 percent of sales last month. That's roughly in line with March sales but down from 37 percent of sales in April 2011. The decrease in foreclosures helped boost the year-over-year median sales price in April. It rose to $177,400, which is 10.1 percent higher from the same month last year. Rising home sales is the latest sign that the market could be starting to turn around nearly five years after the housing bubble burst. Builders are more confident and are starting to builder more homes. Mortgage rates have never been cheaper. And the job market is improving, which has made more people open to buying a home. Employers have added 1 million jobs in the past five months. And unemployment has dropped a full percentage point since August, from 9.1 percent to 8.1 percent in April. Still, many would-be buyers are having difficulty qualifying for home loans or can't afford the larger down payments being required by banks. Even some would-be home buyers are holding off because they fear that home prices could keep falling. Previously occupied homes represent 80 percent of the overall home market. Builders have grown more confident since last fall, in part because more people have expressed an interest in buying a home. In May, builder optimism rose to the highest level in five years, according to the National Association of Home Builders/Wells Fargo builder sentiment index. Last week, the Commerce Department reported that builders started work on more homes and apartments in April, pushing housing construction to a seasonally adjusted annual rate of 717,000 homes. That was near a rate of 720,000 homes and apartments being built in January, which had been a three-year high. But even with the recent strength, housing starts remains at roughly half the pace that economists consider healthy. Many economists believe that 2012 could be the year that housing finally makes a positive contribution to overall economic growth. That hasn't happened since 2005, shortly before the housing boom went bust.
URL to original article: http://seattletimes.nwsource.com/html/businesstechnology/2018260151_apushomesales.html
For further information on Fresno Real Estate check: http://www.londonproperties.com
Americans are buying more homes in every region of the country, the latest indication that the housing market could be on the mend.
By MARTIN CRUTSINGER AP Economics Writer
WASHINGTON — Americans are buying more homes in every region of the country, the latest indication that the housing market could be on the mend. An increasing portion of those sales are from first-time buyers, who are critical to a housing recovery. Sales of previously occupied rose 3.4 percent in April from March to a seasonally adjusted annual rate of 4.62 million, the National Association of Realtors said Tuesday. That nearly matches January's pace of 4.63 million -the best in two years. It is still well below the nearly 6 million that most economists equate with healthy markets. A pickup in hiring and cheaper mortgages, combined with lower home prices in most markets, has made home buying more attractive. While many economists acknowledged that the market has a long way to go, most said the April sales report was encouraging. "The trend in sales is upward, and we think it has a good deal further to go over the next few months as payrolls pick up further and mortgage availability improves," said Ian Shepherdson, chief U.S. economist for High Frequency Economics. Sales rose last month from March in all regions of the country. They increased 5.1 percent rise in the Northeast, 3.5 percent in the South, 4.4 percent in the West and 1 percent in the Midwest. And more first-time buyers entered the market. In April, they made up 35 percent of sales. That's up from 32 percent in March. "First-time homebuyers are slowly making their way back," said Jennifer Lee, an economist at BMO Capital Markets. "That is still below the 40 percent-to-45 percent range during healthy times, but the highest in almost half a year." The report measures completed sales. A sale typically closes a month or two after a buyer signs a contract to buy a home. But a growing number of buyers in recent months have been investors who pay cash, which speeds up the process. The number of buyers who signed contracts to buy homes in April rose to the highest level since April 2010, when buyers could qualify for a federal home-buying tax credit. The increase suggests sales could keep rising in May and June. "People believe that interest rates are as low as they are going to get and that prices have hit rock bottom. So they are getting off the fence," said Tony Geraci, the owner of Century21 Homestar, a real estate firm in Cleveland. Geraci said sales at his firm are up about 15 percent over last year. He credited that to a milder winter this year, better housing conditions and an improving economy. Homes at risk of foreclosure accounted for 28 percent of sales last month. That's roughly in line with March sales but down from 37 percent of sales in April 2011. The decrease in foreclosures helped boost the year-over-year median sales price in April. It rose to $177,400, which is 10.1 percent higher from the same month last year. Rising home sales is the latest sign that the market could be starting to turn around nearly five years after the housing bubble burst. Builders are more confident and are starting to builder more homes. Mortgage rates have never been cheaper. And the job market is improving, which has made more people open to buying a home. Employers have added 1 million jobs in the past five months. And unemployment has dropped a full percentage point since August, from 9.1 percent to 8.1 percent in April. Still, many would-be buyers are having difficulty qualifying for home loans or can't afford the larger down payments being required by banks. Even some would-be home buyers are holding off because they fear that home prices could keep falling. Previously occupied homes represent 80 percent of the overall home market. Builders have grown more confident since last fall, in part because more people have expressed an interest in buying a home. In May, builder optimism rose to the highest level in five years, according to the National Association of Home Builders/Wells Fargo builder sentiment index. Last week, the Commerce Department reported that builders started work on more homes and apartments in April, pushing housing construction to a seasonally adjusted annual rate of 717,000 homes. That was near a rate of 720,000 homes and apartments being built in January, which had been a three-year high. But even with the recent strength, housing starts remains at roughly half the pace that economists consider healthy. Many economists believe that 2012 could be the year that housing finally makes a positive contribution to overall economic growth. That hasn't happened since 2005, shortly before the housing boom went bust.
URL to original article: http://seattletimes.nwsource.com/html/businesstechnology/2018260151_apushomesales.html
For further information on Fresno Real Estate check: http://www.londonproperties.com
Back to big: McMansions driving new-home sales
Source: SmartMoney
The rise in new home sales is being driven in part by demand for the kind of larger and more luxurious custom-built houses that had fallen out of favor in recent years: so-called McMansions. Data released on Wednesday shows that sales of newly built homes rose 3.3% in April from a month prior and 9.9% from a year ago. While the figures do not disclose the size of these new homes, home builders credited the McMansion side of the spectrum. That’s a reversal from recent trends: During the recession the size of homes got smaller, shrinking 3.4% to 2,382 square feet, according to the US Census. But last year that size jumped 5.2% to 2,505 – the largest in at least four years. In many regions of the country, homes are even larger. Home builders say the trend toward larger new homes picked up more this year. Michael Villane, president of Lead Dog Builders, a custom home builder in Rumson, N.J., says he’s currently building homes with sticker prices of $1.5 to $4 million, up from the $1.3 to $1.5 million his clients were commissioning a year ago. While the average size of homes in the region is 3,500 to 5,500 square feet, he says the orders he’s received this year are for 7,000 plus-square feet homes. Though there’s no official definition of the word, many define McMansions as new homes larger than 3,000 square feet. In some cases, home builders are enlarging homes even if clients don’t ask for it. Michael Dubb, CEO and president of The Beechwood Organization, a New York-based home building company, says his firm is building houses with larger kitchens, higher ceilings, and overall more spacious rooms in an attempt to appeal to buyers who might be on the fence about buying a new home. By building bigger without raising the price, he says, the company is hoping to increase its sales. (He says they’re not downgrading quality, but rather cutting into their profits in order to make more sales.) In addition to bigger homes, builders say custom homes as a whole are becoming more popular. According to the most recent data available from the National Association of Home Builders, custom homes accounted for nearly 30% of all housing starts in 2011. That’s up from just 19% during the building peak in 2005. “Buyers are putting a lot more attention to detail – they’re not just buying a big box,” says Villane. So far this year, he says clients’ requests have become more customized to include crown molding, built-in microwaves, and double ovens. To be sure, the total number of custom-built homes is lower than it was during the peak of the housing boom. But because smaller home projects have plummeted even more, these high-end homes now account for a larger share of building overall, says Steve Melman, director of economic services at the National Association of Home Builders. Home builders typically rely on high-income buyers to get through downturns, he says. Requests for large new homes come at a challenging time for the overall new home market. New home sales hit a 51-year low of 307,000 last year, according to the NAHB. That figure is expected to jump 18% this year, but it would still be way off its peak of 1.3 million homes in 2005. Experts say high-income buyers don’t have to deal with the borrowing headaches the average buyer encounters. They’re less likely to need a mortgage, and those who do tend to have the high credit scores and sizable down payments needed to qualify, says Jack McCabe, an independent housing analyst in Deerfield Beach, Fla. Wealthy buyers are also more likely to pass other hurdles, like low appraisals, which have been derailing new home sales. (Appraisers have been pricing many homes at values below the cost of construction.)
URL to original article: http://www.builderonline.com/builder-pulse/back-to-big--mcmansions-fueling-new-home-sales.aspx?cid=BP:052412:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
The rise in new home sales is being driven in part by demand for the kind of larger and more luxurious custom-built houses that had fallen out of favor in recent years: so-called McMansions. Data released on Wednesday shows that sales of newly built homes rose 3.3% in April from a month prior and 9.9% from a year ago. While the figures do not disclose the size of these new homes, home builders credited the McMansion side of the spectrum. That’s a reversal from recent trends: During the recession the size of homes got smaller, shrinking 3.4% to 2,382 square feet, according to the US Census. But last year that size jumped 5.2% to 2,505 – the largest in at least four years. In many regions of the country, homes are even larger. Home builders say the trend toward larger new homes picked up more this year. Michael Villane, president of Lead Dog Builders, a custom home builder in Rumson, N.J., says he’s currently building homes with sticker prices of $1.5 to $4 million, up from the $1.3 to $1.5 million his clients were commissioning a year ago. While the average size of homes in the region is 3,500 to 5,500 square feet, he says the orders he’s received this year are for 7,000 plus-square feet homes. Though there’s no official definition of the word, many define McMansions as new homes larger than 3,000 square feet. In some cases, home builders are enlarging homes even if clients don’t ask for it. Michael Dubb, CEO and president of The Beechwood Organization, a New York-based home building company, says his firm is building houses with larger kitchens, higher ceilings, and overall more spacious rooms in an attempt to appeal to buyers who might be on the fence about buying a new home. By building bigger without raising the price, he says, the company is hoping to increase its sales. (He says they’re not downgrading quality, but rather cutting into their profits in order to make more sales.) In addition to bigger homes, builders say custom homes as a whole are becoming more popular. According to the most recent data available from the National Association of Home Builders, custom homes accounted for nearly 30% of all housing starts in 2011. That’s up from just 19% during the building peak in 2005. “Buyers are putting a lot more attention to detail – they’re not just buying a big box,” says Villane. So far this year, he says clients’ requests have become more customized to include crown molding, built-in microwaves, and double ovens. To be sure, the total number of custom-built homes is lower than it was during the peak of the housing boom. But because smaller home projects have plummeted even more, these high-end homes now account for a larger share of building overall, says Steve Melman, director of economic services at the National Association of Home Builders. Home builders typically rely on high-income buyers to get through downturns, he says. Requests for large new homes come at a challenging time for the overall new home market. New home sales hit a 51-year low of 307,000 last year, according to the NAHB. That figure is expected to jump 18% this year, but it would still be way off its peak of 1.3 million homes in 2005. Experts say high-income buyers don’t have to deal with the borrowing headaches the average buyer encounters. They’re less likely to need a mortgage, and those who do tend to have the high credit scores and sizable down payments needed to qualify, says Jack McCabe, an independent housing analyst in Deerfield Beach, Fla. Wealthy buyers are also more likely to pass other hurdles, like low appraisals, which have been derailing new home sales. (Appraisers have been pricing many homes at values below the cost of construction.)
URL to original article: http://www.builderonline.com/builder-pulse/back-to-big--mcmansions-fueling-new-home-sales.aspx?cid=BP:052412:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, May 23, 2012
The most and least affordable real estate markets
Source: The Mortgage Reports
Everywhere you look, mortgage rates are down. Conforming mortgage rates, FHA mortgage rates, USDA mortgage rates and jumbo mortgage rates are each posting all-time lows.Combined with slowly rising home values and an increase in the national median income, for the first time in history, more than 77 percent of home sold were "affordable" for everyday Americans. Click here to get today's mortgage rates. Low Mortgage Rates Make For Low Mortgage Payments According to the National Association of Home Builders, 77.5% of homes sold last quarter were affordable to families earning the national median income of $65,000. "Home affordability" is defined as having housing payments that fall below 28 percent of household income assuming a 30-year fixed rate mortgage and a 10 percent downpayment. The NAHB's definition of "affordable" is akin to what mortgage underwriters call a "front-end ratio". You can be approved for a mortgage with a front-end ratio north of 28 percent, but it may not be advisable. In defining home affordability in terms of front-end ratios, in other words, the homebuilders' association promotes a conservative approach to homeownership. That said, home affordability moved to record levels last quarter for three main reasons : 1.Home prices climbed in many U.S. markets, but only slowly. The list of real estate markets experiencing rapid appreciation last quarter was a short list one (e.g.; San Francisco, California) 2.The median income level improved nationally, rising 1% from the quarter prior 3.Most mortgage rates dropped to their lowest levels in history between January-March Rising home prices are no match for falling mortgage rates with respect to home affordability. So long as mortgage rates stay low, home affordability should remain high. Click here to get a mortgage rate quote. Cincinnati, Dayton, South Carolina Remain Affordable Keeping with the adage that all real estate is local, on a regional basis last quarter, home affordability varied. Cumberland, Maryland topped the national rankings; 99.0% of homes in the Maryland border town were affordable to households earning the median income there. Fairbanks, Alaska followed in the number two slot with an affordability ranking of 98.9%. Midwestern cities then stuffed the rest of the Top 10 Most Affordable Markets, a list that features Indianapolis, Indiana in the 5th slot for all housing markets, and the top slot for "big cities". 95.8% of homes in Indianapolis are affordable to households earning the median income there. Other noteworthy cities scored as follows : •Dayton, Ohio : 93.7 percent •Lakeland / Winter Haven, Florida : 93.2 percent •Springfield, Illinois : 92.0 percent •Cincinnati, Ohio : 90.2 percent •Columbia, South Carolina : 89.3 percent On the opposite end on the home affordability scale, the New York-White Plains, New York-Wayne, New Jersey region ranked last in home affordability for the 16th consecutive quarter. Just 31.5% of homes there are affordable to families earning the local median income. Click here to get a mortgage rate quote. Looking For Low Mortgage Rates? The housing market has good momentum. Home sales are higher and low mortgage rates deserve at least some of the credit. So does the availability of low downpayment mortgage programs. The FHA's 3.5% downpayment program, and the USDA and VA programs allowing for 100% financing have both helped keep home buyers in the market. See how today's low rates and low downpayment loans can help you, too.
URL to original article: http://www.builderonline.com/builder-pulse/the-most-and-least-affordable-real-estate-markets.aspx?cid=BP:052312:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Everywhere you look, mortgage rates are down. Conforming mortgage rates, FHA mortgage rates, USDA mortgage rates and jumbo mortgage rates are each posting all-time lows.Combined with slowly rising home values and an increase in the national median income, for the first time in history, more than 77 percent of home sold were "affordable" for everyday Americans. Click here to get today's mortgage rates. Low Mortgage Rates Make For Low Mortgage Payments According to the National Association of Home Builders, 77.5% of homes sold last quarter were affordable to families earning the national median income of $65,000. "Home affordability" is defined as having housing payments that fall below 28 percent of household income assuming a 30-year fixed rate mortgage and a 10 percent downpayment. The NAHB's definition of "affordable" is akin to what mortgage underwriters call a "front-end ratio". You can be approved for a mortgage with a front-end ratio north of 28 percent, but it may not be advisable. In defining home affordability in terms of front-end ratios, in other words, the homebuilders' association promotes a conservative approach to homeownership. That said, home affordability moved to record levels last quarter for three main reasons : 1.Home prices climbed in many U.S. markets, but only slowly. The list of real estate markets experiencing rapid appreciation last quarter was a short list one (e.g.; San Francisco, California) 2.The median income level improved nationally, rising 1% from the quarter prior 3.Most mortgage rates dropped to their lowest levels in history between January-March Rising home prices are no match for falling mortgage rates with respect to home affordability. So long as mortgage rates stay low, home affordability should remain high. Click here to get a mortgage rate quote. Cincinnati, Dayton, South Carolina Remain Affordable Keeping with the adage that all real estate is local, on a regional basis last quarter, home affordability varied. Cumberland, Maryland topped the national rankings; 99.0% of homes in the Maryland border town were affordable to households earning the median income there. Fairbanks, Alaska followed in the number two slot with an affordability ranking of 98.9%. Midwestern cities then stuffed the rest of the Top 10 Most Affordable Markets, a list that features Indianapolis, Indiana in the 5th slot for all housing markets, and the top slot for "big cities". 95.8% of homes in Indianapolis are affordable to households earning the median income there. Other noteworthy cities scored as follows : •Dayton, Ohio : 93.7 percent •Lakeland / Winter Haven, Florida : 93.2 percent •Springfield, Illinois : 92.0 percent •Cincinnati, Ohio : 90.2 percent •Columbia, South Carolina : 89.3 percent On the opposite end on the home affordability scale, the New York-White Plains, New York-Wayne, New Jersey region ranked last in home affordability for the 16th consecutive quarter. Just 31.5% of homes there are affordable to families earning the local median income. Click here to get a mortgage rate quote. Looking For Low Mortgage Rates? The housing market has good momentum. Home sales are higher and low mortgage rates deserve at least some of the credit. So does the availability of low downpayment mortgage programs. The FHA's 3.5% downpayment program, and the USDA and VA programs allowing for 100% financing have both helped keep home buyers in the market. See how today's low rates and low downpayment loans can help you, too.
URL to original article: http://www.builderonline.com/builder-pulse/the-most-and-least-affordable-real-estate-markets.aspx?cid=BP:052312:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
The 1 percent snatching up low-end real estate
Source: Business Insider
Long time real estate pros in Southern California are seeing a phenomenon they have never seen before. The 1 percent is buying up all the low end SoCal real estate! This was reported by the LA Times. Meantime, Tom Lee was on Bloomberg on 5/21/2012 pumping the housing market. Like a good soldier of the 1 percent, JP Morgan's Lee was saying that real estate will help kindle a boom in manufacturing in the United States. But if you keep in mind that many of the investors pumping the low end of the real estate market are in fact private equity funds, the investors not in the 1 percent should beware. What could happen is that the 1 percent will squeeze everyone else out of the market, and undercut rental prices. While this is temporarily good for renters, cornering the market by the big boys will not help renters in the long run. Remember, this money could be hot money as well, coming from all over the world to give a boost to real estate that may not last. We know that the investment funds were talking about getting into these markets, but now they are in the markets and we have locals making us painfully aware of that fact. From the same LA Times article, Mia Melle, a rental management pro, says that many of her clients are now private equity funds. I found this sort of thing happening in Nevada, a shortage of housing on the low end. It was primarily because of the laws implemented to slow down the foreclosure process. But the speed at which the low end RE was gobbled up was astounding, going from almost 20,000 units down to 1,600 units available in just a short time. The question must be asked if this investment fund buying is going on in Las Vegas as well. The Reno Gazette Journal estimates that 25 percent of real estate purchases have been made by hedge funds. This enormous percentage can manipulate the housing market until it doesn't. And that percentage is even higher in places that saw the real estate crash, such as in Las Vegas and Reno.While not advertised, I am convinced that the private equity folks are moving into Nevada with both barrels blazing. We have seen this crazy behavior in farmland, which often crashes after being pushed up. We could expect the same with residential real estate. A questions is whether the hedge funds will be stuck after the next bubble or if they will try to sell high to the renters with easy terms. I tend to think selling high to the renters will be the way they deal with serious rises in house prices going forward. There is only one way that these behaviors by the uber rich will be slowed, and that is by multigenerational housing arrangements. Without a serious effort to push easy money on main street, even a slight rise in housing costs could cause more multigenerational living to be the choice of many. That is what Tom Lee seems to ignore as he says there are 15 million more adults in the US now than in 2007. He is assuming there is demand on the part of those folks, or is fooling others into thinking that those folks will all seek single family housing. That is a frequent investment banking ploy. Jim Cramer did not foresee the housing bubble precisely because he relied on strong single family formation leading up to the housing meltdown. But the middle investor could be a sitting duck if the 1 percent has its way and if the family formation does not pan out. The middle income investor should be careful trying to compete with the 1 percent in the rental business because that will surely be a losing game. With the advent of the Obama program to dump even more housing in block sales, this investment by the 1 percent surely will ruin real estate for many.
URL to original article: http://www.builderonline.com/builder-pulse/the-1-percent-snatching-up-low-end-real-estate.aspx?cid=BP:052312:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Long time real estate pros in Southern California are seeing a phenomenon they have never seen before. The 1 percent is buying up all the low end SoCal real estate! This was reported by the LA Times. Meantime, Tom Lee was on Bloomberg on 5/21/2012 pumping the housing market. Like a good soldier of the 1 percent, JP Morgan's Lee was saying that real estate will help kindle a boom in manufacturing in the United States. But if you keep in mind that many of the investors pumping the low end of the real estate market are in fact private equity funds, the investors not in the 1 percent should beware. What could happen is that the 1 percent will squeeze everyone else out of the market, and undercut rental prices. While this is temporarily good for renters, cornering the market by the big boys will not help renters in the long run. Remember, this money could be hot money as well, coming from all over the world to give a boost to real estate that may not last. We know that the investment funds were talking about getting into these markets, but now they are in the markets and we have locals making us painfully aware of that fact. From the same LA Times article, Mia Melle, a rental management pro, says that many of her clients are now private equity funds. I found this sort of thing happening in Nevada, a shortage of housing on the low end. It was primarily because of the laws implemented to slow down the foreclosure process. But the speed at which the low end RE was gobbled up was astounding, going from almost 20,000 units down to 1,600 units available in just a short time. The question must be asked if this investment fund buying is going on in Las Vegas as well. The Reno Gazette Journal estimates that 25 percent of real estate purchases have been made by hedge funds. This enormous percentage can manipulate the housing market until it doesn't. And that percentage is even higher in places that saw the real estate crash, such as in Las Vegas and Reno.While not advertised, I am convinced that the private equity folks are moving into Nevada with both barrels blazing. We have seen this crazy behavior in farmland, which often crashes after being pushed up. We could expect the same with residential real estate. A questions is whether the hedge funds will be stuck after the next bubble or if they will try to sell high to the renters with easy terms. I tend to think selling high to the renters will be the way they deal with serious rises in house prices going forward. There is only one way that these behaviors by the uber rich will be slowed, and that is by multigenerational housing arrangements. Without a serious effort to push easy money on main street, even a slight rise in housing costs could cause more multigenerational living to be the choice of many. That is what Tom Lee seems to ignore as he says there are 15 million more adults in the US now than in 2007. He is assuming there is demand on the part of those folks, or is fooling others into thinking that those folks will all seek single family housing. That is a frequent investment banking ploy. Jim Cramer did not foresee the housing bubble precisely because he relied on strong single family formation leading up to the housing meltdown. But the middle investor could be a sitting duck if the 1 percent has its way and if the family formation does not pan out. The middle income investor should be careful trying to compete with the 1 percent in the rental business because that will surely be a losing game. With the advent of the Obama program to dump even more housing in block sales, this investment by the 1 percent surely will ruin real estate for many.
URL to original article: http://www.builderonline.com/builder-pulse/the-1-percent-snatching-up-low-end-real-estate.aspx?cid=BP:052312:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, May 22, 2012
Lowe’s: Blame housing market for slow sales
Source: MarketWatch
By Andria Cheng, MarketWatch
NEW YORK (MarketWatch) — Lowe’s Cos. shares saw their biggest decline since August 2009 on Monday as the No. 2 U.S. home-improvement retailer said sales trends slowed toward the end of the first quarter and management cut its outlook for the year. First-quarter same-store sales also missed Wall Street’s expectations, even though its /quotes/zigman/232508/quotes/nls/low LOW -0.43% profit rose more than expected on expense control. While the broader markets traded higher, Lowe’s shares fell 9.4% to $25.80, making them the biggest decliner in the S&P 500 index and marking their sharpest pullback since a 10.3% drop on Aug. 17, 2009. Larger rival Home Depot Inc. /quotes/zigman/229488/quotes/nls/hd HD +1.37% , which reported a 28% first-quarter profit increase last week, rose less than 1%. Home Depot’s performance has continued to outpace that of Lowe’s, analysts said. Still, both home-improvement retailers continued to share similar concerns about uncertainty in the housing market, with Home Depot saying its growth would more likely reflect of the rate of growth in gross domestic product than a housing market recovery. Like Lowe’s, Home Depot’s first-quarter sales and margins as well as its outlook also came in short. See related story on Home Depot. Robert Niblock, Lowe’s chief executive, said on a conference call on Monday that while consumer demand has picked up recently, it has been driven by unseasonably warm weather. Without real income growth for consumers, spending also will likely level off, he said. On the housing front, Niblock said an improvement in housing turnover was off a small base. While prices for non-distressed properties appear to have stabilized, high-level distressed properties remain a concern, he said. “We continue to maintain a cautious view of the housing and macro demand environment, and our guidance reflects that view,” Niblock said on the call. “Future uncertainties are still weighing heavily on the consumer.” Lowe’s also said it’s making tough decisions to look at its expenses after it announced moves to shut 20 underperforming stores last year and slow new store growth. It’s also reducing promotions to focus on an everyday-low-price strategy while giving a 5% discount on transactions using its store card to lift traffic and purchases. The company’s first-quarter profit rose 14%, helped by warmer weather that lifted demand for seasonal products. However, the retailer said seasonal item sales slowed toward the end of the quarter ended May 4. The company sees profit of $1.73 to $1.83 a share for the year, 2 cents lower from its February projection. Sales are expected to rise 1% to 2%, with comparable sales expected to increase 1% to 3%. Analysts surveyed by FactSet Research were looking for a full-year profit of $1.87 a share, on average. Profit last quarter rose to $527 million, or 43 cents a share, from $461 million, or 34 cents, a year earlier, the Mooresville, N.C.-based company said. Quarterly sales climbed 7.9% to $13.15 billion, including a calendar shift that aided sales by $514 million and profit by 5 cents a share. Excluding a one-cent charge tied to a reduction of U.S. headquarters staff, Lowe’s said it would have earned 44 cents a share. That topped the 42-cent average analyst estimate. Sales also exceeded the consensus estimate of $13 billion. Comparable sales rose 2.6%, missing the 5.4% gain analysts were looking for. They rose 2.7% in the U.S. Transactions on a comparable basis rose 2.6% while average ticket spent was flat. The company also attributed sales gains to its 5% card discount program. Lowe’s has 1,745 stores in the U.S., Canada and Mexico. ‘Reminder that turnarounds are bumpy’ During the quarter, 11 of 15 product categories showed positive same-store sales growth, led by items such as tools, outdoor power equipment, paint, lumber, lawn mowers, and mulch. Within indoor products, gains in interior paints and applicators, ceiling fans and light bulbs were hurt by weak demand for appliances, cabinets and countertops as the company reduced promotions. Demand for bigger-ticket items, while stable, also continues to be “constrained,” Lowe’s said on the call. “These results will be construed as a disappointment considering the really good weather, which clearly helped seasonal categories and the relatively strong (comparable) sales” at Home Depot, said Janney Capital analyst David Strasser. “The high expectations of a housing recovery appear unwarranted, and the recovery seems slow in coming. This is a reminder that turnarounds are bumpy.” Gross margin narrowed to 34.70% in the latest quarter from the prior year’s 35.44%, hurt by the 5% discount program. That also missed expectations. Selling, general and administrative expenses declined to 24.65% of sales from 25.60%. “We continue to like this story, as we like the oligopoly nature of the segment, the upside opportunity if and when housing recovers and the market share opportunities from Sears” Holdings Corp. /quotes/zigman/95136/quotes/nls/shld SHLD +1.41% , the biggest U.S. appliance seller, said Credit Suisse analyst Gary Balter. “Lowe’s has embarked on a multi-year reset of its stores, changing how its displays everything from end caps to how it empowers employees.”
URL to original article: http://www.builderonline.com/builder-pulse/lowe-s--blame-housing-market-for-slow-sales.aspx?cid=BP:052212:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Andria Cheng, MarketWatch
NEW YORK (MarketWatch) — Lowe’s Cos. shares saw their biggest decline since August 2009 on Monday as the No. 2 U.S. home-improvement retailer said sales trends slowed toward the end of the first quarter and management cut its outlook for the year. First-quarter same-store sales also missed Wall Street’s expectations, even though its /quotes/zigman/232508/quotes/nls/low LOW -0.43% profit rose more than expected on expense control. While the broader markets traded higher, Lowe’s shares fell 9.4% to $25.80, making them the biggest decliner in the S&P 500 index and marking their sharpest pullback since a 10.3% drop on Aug. 17, 2009. Larger rival Home Depot Inc. /quotes/zigman/229488/quotes/nls/hd HD +1.37% , which reported a 28% first-quarter profit increase last week, rose less than 1%. Home Depot’s performance has continued to outpace that of Lowe’s, analysts said. Still, both home-improvement retailers continued to share similar concerns about uncertainty in the housing market, with Home Depot saying its growth would more likely reflect of the rate of growth in gross domestic product than a housing market recovery. Like Lowe’s, Home Depot’s first-quarter sales and margins as well as its outlook also came in short. See related story on Home Depot. Robert Niblock, Lowe’s chief executive, said on a conference call on Monday that while consumer demand has picked up recently, it has been driven by unseasonably warm weather. Without real income growth for consumers, spending also will likely level off, he said. On the housing front, Niblock said an improvement in housing turnover was off a small base. While prices for non-distressed properties appear to have stabilized, high-level distressed properties remain a concern, he said. “We continue to maintain a cautious view of the housing and macro demand environment, and our guidance reflects that view,” Niblock said on the call. “Future uncertainties are still weighing heavily on the consumer.” Lowe’s also said it’s making tough decisions to look at its expenses after it announced moves to shut 20 underperforming stores last year and slow new store growth. It’s also reducing promotions to focus on an everyday-low-price strategy while giving a 5% discount on transactions using its store card to lift traffic and purchases. The company’s first-quarter profit rose 14%, helped by warmer weather that lifted demand for seasonal products. However, the retailer said seasonal item sales slowed toward the end of the quarter ended May 4. The company sees profit of $1.73 to $1.83 a share for the year, 2 cents lower from its February projection. Sales are expected to rise 1% to 2%, with comparable sales expected to increase 1% to 3%. Analysts surveyed by FactSet Research were looking for a full-year profit of $1.87 a share, on average. Profit last quarter rose to $527 million, or 43 cents a share, from $461 million, or 34 cents, a year earlier, the Mooresville, N.C.-based company said. Quarterly sales climbed 7.9% to $13.15 billion, including a calendar shift that aided sales by $514 million and profit by 5 cents a share. Excluding a one-cent charge tied to a reduction of U.S. headquarters staff, Lowe’s said it would have earned 44 cents a share. That topped the 42-cent average analyst estimate. Sales also exceeded the consensus estimate of $13 billion. Comparable sales rose 2.6%, missing the 5.4% gain analysts were looking for. They rose 2.7% in the U.S. Transactions on a comparable basis rose 2.6% while average ticket spent was flat. The company also attributed sales gains to its 5% card discount program. Lowe’s has 1,745 stores in the U.S., Canada and Mexico. ‘Reminder that turnarounds are bumpy’ During the quarter, 11 of 15 product categories showed positive same-store sales growth, led by items such as tools, outdoor power equipment, paint, lumber, lawn mowers, and mulch. Within indoor products, gains in interior paints and applicators, ceiling fans and light bulbs were hurt by weak demand for appliances, cabinets and countertops as the company reduced promotions. Demand for bigger-ticket items, while stable, also continues to be “constrained,” Lowe’s said on the call. “These results will be construed as a disappointment considering the really good weather, which clearly helped seasonal categories and the relatively strong (comparable) sales” at Home Depot, said Janney Capital analyst David Strasser. “The high expectations of a housing recovery appear unwarranted, and the recovery seems slow in coming. This is a reminder that turnarounds are bumpy.” Gross margin narrowed to 34.70% in the latest quarter from the prior year’s 35.44%, hurt by the 5% discount program. That also missed expectations. Selling, general and administrative expenses declined to 24.65% of sales from 25.60%. “We continue to like this story, as we like the oligopoly nature of the segment, the upside opportunity if and when housing recovers and the market share opportunities from Sears” Holdings Corp. /quotes/zigman/95136/quotes/nls/shld SHLD +1.41% , the biggest U.S. appliance seller, said Credit Suisse analyst Gary Balter. “Lowe’s has embarked on a multi-year reset of its stores, changing how its displays everything from end caps to how it empowers employees.”
URL to original article: http://www.builderonline.com/builder-pulse/lowe-s--blame-housing-market-for-slow-sales.aspx?cid=BP:052212:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, May 21, 2012
Where the minority-majority lives
Source: The Atlantic Cities
New population estimates were recently released by the U.S. Census Bureau showing that, for the first time, the majority of Americans under the age of 1 are minorities. Or more specifically that white, non-Hispanic babies now make up less than half of the population younger than 1.
It's part of a demographic shift that's expected to create a minority-majority nationwide population sometime within the next 40 or 50 years. California, Hawaii, New Mexico, and Texas have already passed that threshold at the state level.
So what about cities?
Well, metro-level data isn't yet publicly available. But with the data there is, we've put together something of a proxy to show just how much of the very young U.S. population is made up of what we may eventually no longer know as minorities.
The most recent data available through the Census Bureau's Population Estimates section are at the county level, with granular figures down to the level of ages 4 and under. Counties are the basis for the Bureau's tabulation of metropolitan-scale populations, so this set of figures can stand in to represent metro-level numbers. To simplify things, single counties were used to determine metro-level rates of minorities in this age bracket. Representative counties for each metro were determined by highest county-level population in this list [PDF] of MSAs.
The list below shows the highest rates of minority populations among the 4 and under age group for the 50 most populous metro areas in the U.S. It should be re-emphasized that these are approximations of metro-level data based on single data from single counties, and are only intended to serve as a proxy for trying to understand how this nationwide shift to minority-majority young children plays out on a metro/city level.
As you can see, most of the largest metropolitan areas have already passed the minority-majority population threshold for their young populations. Indeed, 36 of the top 50 metros are in this group. Only one of the top 10, Boston, is below that threshold, with just about 34 percent of its under 5 population representing at least one minority.
Note how many metros are far beyond the 50 percent mark. Eight metros are above 75 percent.
As these demographics continue to shift, it's likely that urban areas will be fueling much of America's future minority-majority.
URL to original article: http://www.blogger.com/blogger.g?blogID=8939919290805312864#editor/target=post;postID=7810657897134675344
For further information on Fresno Real Estate check: http://www.londonproperties.com
New population estimates were recently released by the U.S. Census Bureau showing that, for the first time, the majority of Americans under the age of 1 are minorities. Or more specifically that white, non-Hispanic babies now make up less than half of the population younger than 1.
It's part of a demographic shift that's expected to create a minority-majority nationwide population sometime within the next 40 or 50 years. California, Hawaii, New Mexico, and Texas have already passed that threshold at the state level.
So what about cities?
Well, metro-level data isn't yet publicly available. But with the data there is, we've put together something of a proxy to show just how much of the very young U.S. population is made up of what we may eventually no longer know as minorities.
The most recent data available through the Census Bureau's Population Estimates section are at the county level, with granular figures down to the level of ages 4 and under. Counties are the basis for the Bureau's tabulation of metropolitan-scale populations, so this set of figures can stand in to represent metro-level numbers. To simplify things, single counties were used to determine metro-level rates of minorities in this age bracket. Representative counties for each metro were determined by highest county-level population in this list [PDF] of MSAs.
The list below shows the highest rates of minority populations among the 4 and under age group for the 50 most populous metro areas in the U.S. It should be re-emphasized that these are approximations of metro-level data based on single data from single counties, and are only intended to serve as a proxy for trying to understand how this nationwide shift to minority-majority young children plays out on a metro/city level.
| Population Rank | Metropolitan Statistical Area | Representative County | Minority Population Under Age 5 |
| 2 | Los Angeles–Long Beach–Santa Ana, CA | Los Angeles | 83.47% |
| 8 | Miami–Fort Lauderdale–Pompano Beach, FL | Miami-Dade | 82.60% |
| 4 | Dallas–Fort Worth–Arlington, TX | Dallas | 80.97% |
| 24 | San Antonio–New Braunfels, TX | Bexar | 80.00% |
| 31 | San Jose-Sunnyvale-Santa Clara, CA | Santa Clara | 78.74% |
| 5 | Houston–Sugar Land–Baytown, TX | Harris | 78.71% |
| 11 | San Francisco–Oakland–Fremont, CA | Alameda | 78.05% |
| 12 | Riverside–San Bernardino–Ontario, CA | Riverside | 76.36% |
| 6 | Philadelphia–Camden–Wilmington, PA–NJ–DE–MD | Philadelphia, PA | 73.38% |
| 41 | Memphis, TN-MS-AR | Shelby, TN | 71.76% |
| 9 | Atlanta–Sandy Springs–Marietta, GA | Fulton | 69.46% |
| 3 | Chicago–Joliet–Naperville, IL–IN–WI | Cook, IL | 68.72% |
| 30 | Las Vegas-Paradise, NV | Clark | 67.89% |
| 17 | San Diego–Carlsbad–San Marcos, CA | San Diego | 67.04% |
| 25 | Sacramento–Arden–Arcade–Roseville, CA | Sacramento | 66.39% |
| 34 | Austin-Round Rock-San Marcos, TX | Travis | 66.07% |
| 26 | Orlando–Kissimmee–Sanford, FL | Orange | 64.96% |
| 7 | Washington–Arlington–Alexandria, DC–VA–MD–WV | Montgomery, MD | 64.66% |
| 1 | New York–Northern New Jersey–Long Island, NY–NJ–PA | Kings, NY | 64.08% |
| 39 | Milwaukee-Waukesha-West Allis, WI | Milwaukee | 63.70% |
| 21 | Denver–Aurora–Broomfield, CO | Denver | 62.95% |
| 18 | Tampa–St. Petersburg–Clearwater, FL | Hillsborough | 60.85% |
| 33 | Charlotte-Gastonia-Rock Hill, NC-SC | Mecklenburg, NC | 60.71% |
| 14 | Phoenix–Mesa–Glendale, AZ | Maricopa | 60.17% |
| 13 | Detroit–Warren–Livonia, MI | Wayne | 59.54% |
| 50 | Birmingham-Hoover, AL | Jefferson | 59.16% |
| 46 | New Orleans-Metairie-Kenner, LA | Jefferson | 58.57% |
| 43 | Oklahoma City, OK | Oklahoma | 57.88% |
| 37 | Nashville-Davidson–Murfreesboro–Franklin, TN | Davidson | 56.22% |
| 40 | Jacksonville, FL | Duval | 55.37% |
| 35 | Indianapolis-Carmel, IN | Marion | 54.08% |
| 45 | Hartford-West Hartford-East Hartford, CT | Hartford | 52.20% |
| 38 | Providence-New Bedford-Fall River, RI-MA | Providence, RI | 52.19% |
| 20 | Baltimore–Towson, MD | Baltimore | 52.05% |
| 28 | Cleveland-Elyria-Mentor, OH | Cuyahoga | 51.77% |
| 15 | Seattle–Tacoma–Bellevue, WA | King | 50.90% |
| 29 | Kansas City, MO-KS | Jackson, MO | 49.68% |
| 47 | Raleigh-Cary, NC | Wake | 49.32% |
| 16 | Minneapolis–St. Paul–Bloomington, MN–WI | Hennepin, MN | 47.62% |
| 32 | Columbus, OH | Franklin | 46.06% |
| 27 | Cincinnati-Middletown, OH-KY-IN | Hamilton, OH | 45.56% |
| 44 | Richmond, VA | Chesterfield | 44.14% |
| 19 | St. Louis, MO–IL | St. Louis, MO | 43.16% |
| 23 | Portland–Vancouver–Hillsboro, OR–WA | Multnomah, OR | 42.90% |
| 42 | Louisville/Jefferson County, KY-IN | Jefferson, KY | 42.39% |
| 49 | Buffalo-Niagara Falls, NY | Erie | 36.64% |
| 48 | Salt Lake City, UT | Salt Lake | 36.14% |
| 36 | Virginia Beach-Norfolk-Newport News, VA-NC | York, VA | 36.01% |
| 10 | Boston-Cambridge-Quincy, MA-NH | Middlesex, MA | 34.62% |
| 22 | Pittsburgh, PA | Allegheny | 31.54% |
As you can see, most of the largest metropolitan areas have already passed the minority-majority population threshold for their young populations. Indeed, 36 of the top 50 metros are in this group. Only one of the top 10, Boston, is below that threshold, with just about 34 percent of its under 5 population representing at least one minority.
Note how many metros are far beyond the 50 percent mark. Eight metros are above 75 percent.
As these demographics continue to shift, it's likely that urban areas will be fueling much of America's future minority-majority.
URL to original article: http://www.blogger.com/blogger.g?blogID=8939919290805312864#editor/target=post;postID=7810657897134675344
For further information on Fresno Real Estate check: http://www.londonproperties.com
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