Home Prices Could Rise Four Percent Each if the Next Five Years; Pending Sales Increased 4.1 Percent in March

gfaber@kentwoodcc.com

My latest Post

Home Prices Could Rise Four Percent Each if the Next Five Years; Pending Sales Increased 4.1 Percent in March

Monday, May 14th, 2012

Average U.S. Home Prices, down by a third since 2006, will rise almost four percent a year for the next five years, according to market watcher Fiserv, which sees prices stabilizing by summer’s end and then climbing…quickly in some places before tapering off.

The forecast is based on an analysis of leading home price indexes. Investors will drive much of the momentum, as they are now in cities such as Las Vegas and Phoenix. First-time and trade-up buyers will eventually More...

Posted in Blog Posts, Denver Real Estate, Real Estate News | No Comments

China Becomes Second Biggest Group of Foreign Investors in American Homes

International buyers now account for more than 20 percent of the United States real estate market, with a significant proportion from China, according to a recent survey by the Asian Real Estate Association of America (AREAA).

Among all deals closed during the past 12 months, 30 percent were for premium homes valued at more than $1 million, the survey showed. Strong demand from China and other international buyers has boosted an otherwise challenging market.

January Home Sales Rise as Market Trends Upwards

Pending home sales are on an upward trend, according to the National Association of Realtors. The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 2.0 percent higher than January last year when it was 89.8. The data reflects contracts but not closings.

The January index is the highest since April 2010 when it reached 111.3 as buyers were rushing to take advantage of the home buyer tax credit. NAR’s chief economist said this is a hopeful More...

Don’t Mess with Mortgage Interest Tax Deductions

Politicians need to be very clear about one thing: Americans don’t want anyone messing with the popular mortgage interest tax deduction, according to the National Association of Home Builders.

The tax break is favored by the real estate industry but is the bane of most economists who consider it a waste of money amid concern about the federal budget deficit.

There are detailed proposals to replace the mortgage interest deduction with a tax credit targeted to entry-level More...

Census Bureau Reports Population Slowing in Large Portions of U.S.

The Census Bureau reported recently that many states that posted big population gains in the 2010 census are now seeing the decade-long growth slowing due primarily to the prolonged economic slump that is stretching into larger portions of the south and west.

As a whole, the U.S. population grew by 2.8 million, reaching 311.6 million people. That growth of 0.92 percent was the lowest since the mid-1940s, hurt by fewer births and less immigration following the recent recession. The More...

Bureau of Economic Growth Reports Encouraging News

The Bureau of Economic Analysis reported that its advance estimate place economic growth at a 2.5 percent annual rate during the third quarter, more than three times the pace of the first half of the year. The most important contribution to Gross Domestic Product was domestic aggregate demand, which rose 3.6 percent annualized, the second biggest quarterly gain in five years.

Some positive news also came from the latest retail sales report, which showed the fifth straight monthly More...

Inside Real Estate News Reports on Denver Market

Denver’s real estate market was ranked number nine in the Emerging Trends in
Real Estate Report released this week, according to an article posted on InsideRealEstateNews.com.

The Emerging Trends reports has been released for 32 consecutive years. Denver’s lowest ranking was 17th out of 51 cities in the “For Sale Homebuilding” category.

The findings of the report are based on a total of 875 interviews and surveys sent to investors, fund managers, developers, More...

Defending Fannie Mae and Freddie Mac Hits $160 Million

So what does it cost the government to defend against civil lawsuits for fraud filed by taxpayers against Fannie Mae and Freddie Mac since Uncle Sam took them over? So far, more than $160 million!

Colorado May Gain More Than 10,000 New Jobs in 2011

Steady economic growth next year may allow Colorado to gain 10,100 jobs in 2011, according to the annual Colorado Business Economic Outlook just released by the University of Colorado’s Leeds School of Business.

Mortgage Caution – Delays in Closings Will Happen!

A broker in my office came to me yesterday with some questions about a seller’s recourse if the loan doesn’t fund at closing.

Colorado is a “table closing” state, and our contract expressly states that the buyer must attend the closing with all moneys and documents. This means that if a closing is at 4 p.m. on a Wednesday, as this broker’s closing was, the buyer and the buyer’s lender must perform under the terms of the contract at 4 More...