S&P CoreLogic Case-Shiller: US home prices rose 3.7% in May

WASHINGTON (AP) — U.S. home prices grew more slowly in May, but continued to show resilience in the face of the coronavirus outbreak.

The S&P CoreLogic Case-Shiller 20-city home price index rose 3.7% in from a year earlier. That’s a drop from the 3.9% increase in April and it was a smaller gain than economists had expected. Still, home prices have risen steadily despite the pandemic and lockdowns that have badly damaged the American economy.

Phoenix led the way with a 9% annual gain in home prices, followed by Seattle (up 6.8%) and Tampa (up 6%). Chicago registered the smallest increase: 1.3%.

The May slowdown, however, broke a streak in rising sales that stretched back to September. Craig Lazzara of S&P Dow Jones Indices said it was too soon to know if April was a high water mark, or if May was “a slight deviation from an otherwise intact trend.″

The National Association of Realtors reported last week that sales of existing U.S. homes shot up 20.7% last month, snapping a three-month streak of falling sales. Mortgage rates are near historic lows.

“In a remarkable show of resilience, the housing market has stared the pandemic right in the eye and hasn’t blinked,” said Matthew Speakman, economist at the real estate firm Zillow. “Record-low mortgage rates and a shortage of available homes have fueled competition amongst buyers in the spring and early summer, leading to homes flying off the market at their fastest pace in years and home prices to continue to rise.″

The 20-city index released Tuesday excluded prices from the Detroit metropolitan area index because of delays at the recording office in Wayne County, which includes Detroit.

The Case-Shiller index is composed of a three-month average of home prices, so this month’s data includes figures from March, April and May.

-Associated Press

Great News for Homebuyers in 2019: Loan Limits Increase

Thinking about buying a home in the next year? You’re in luck.

The Federal Housing Finance Agency (FHFA) announced yesterday that for the third straight year they will increase the limits for mortgages backed by agencies that cover the vast majority of the home loans issued in the U.S. In 2019 they will increase the limit 6.9 percent, taking the limit from $453,100 to $484,350.

What does this mean for you as a homebuyer? It may allow you up to $30,000 more on an affordable loan option, particularly if you are looking to buy in a market with rising home prices.

This increase in loan limits is designed to help homebuyers keep pace with a more expensive market. Even as home prices rise, you can afford to buy a more expensive home with an agency conforming loan.

“These higher loan limits create more borrowing opportunities – whether you’re a potential homebuyer or a homeowner seeking to refinance,” says A. Wade Douroux, President and CEO of Resource Financial Services. “This gives homebuyers access to higher amounts through conventional lending – which is also good news for sellers this year.”

The knowledgeable mortgage bankers at Resource Financial Services can help you figure out if the new conforming loan limits apply to you. They can answer all your questions and have a wide range of programs that may benefit you.

“Get in touch with us soon to discuss how these loan limits can help you with a home purchase or refinance,” says Douroux.

Resource Financial Services exists to make people’s dreams of home ownership a reality. The mortgage lender offers experienced mortgage specialists who work hard to educate homebuyers about the wide variety of loan programs that can be tailored to meet individual financial needs. Homebuyers can expect quicker closings, same-day pre-approval, 5-Day Processing and guaranteed lower rates.

Call toll-free at 877.797.4545to speak with a mortgage banker or visit Resource Financial Services online at rfsmortgage.com to learn more.

source: resourcefinancialservices.com

US home prices rose 9.7% in January, most in nearly 7 years

WASHINGTON (AP) - US home prices jumped in January, a sign the housing market is gaining momentum as it nears the spring selling season.

Home prices rose 9.7 per cent in January from a year ago, according to data released on Tuesday by CoreLogic. The figure is up from an 8.3 per cent increase in December and the biggest annual gain since April 2006.

Prices rose in all states except Delaware and Illinois. They also registered increases in 92 of the 100 largest metro areas, up from 87 in December.

Home prices also rose 0.7 per cent in January from December. That is a considerable increase given that sales usually slow over the winter months.

source: straitstimes.com

Advantages of Renting a Home Instead of Owning

Right now, home prices (especially in the U.S.) are quite low, and mortgage rates are fairly low as well. A number of foreclosures means that there are cheap homes on the market. As a result, it is really tempting to buy a home. However, in some cases it might be to your advantage to keep renting. This has occurred to me as my family faces the prospect of moving and possibly selling our house, as well as the expenses associated with paying for a flooded basement. I’m wondering if maybe we should go back to renting. Here are some of the reasons that renting is looking tempting:


 Owning a Home is Expensive


Forget about the line from real estate agents about a home being a great investment or your biggest asset. Your home is a purchase. An expensive purchase. By the time you pay interest (even though you can get a tax deduction), property taxes, maintenance costs, repair expenses, insurance and utilities, the expenses really start to add up. Even if you do sell your home for more than you paid, it may not be enough to offset the accumulated expenses associated with owning a home for decades.

Renting, on the other hand, is usually less expensive. You aren’t responsible for the repairs or maintenance costs (unless you do something you shouldn’t), renter’s insurance is much cheaper than homeowner’s insurance, and you don’t have interest or property taxes. Depending on the market you’re in, a rent payment for a decent-sized home may be a couple hundred less than a mortgage payment. Some folks like to invest the difference, hoping for a better long-term return.

Greater Flexibility

 

If you aren’t going to be an area for very long, the flexibility of renting might be attractive. Aside from having to sign a one year initial lease, renting offers the ability for you to pick up and leave if you need/want to. We had hoped to be in our current home for a longer period of time, but, like so much in life, it isn’t working out. We will probably have to move to a new town, and that means trying to sell this house. If we were renting right now, we could just offer 30 days’ notice to the landlord and leave when ready. And, because we don’t want to be landlords, we will probably have to take a loss on the home when we sell it.

Bottom Line

 

ready to buy a home, and we might not rush into it in the next place we live. While we can afford to live in the house, the responsibility of it, and the expense associated with it, can be irritating at times — especially when I think that we are likely to be moving after staying in the home for less than five years.

In the end, carefully weigh the pros and cons of buying a home versus renting it. Think about what is likely to happen in the future, and whether or not the money you put into home ownership might be better used elsewhere.

source: financialhighway.com