Housing News: November 2, 2009 November 2, 2009Posted by John Watch in AccuriZ News, AccuriZ Reports, News Feed.
Tags: $8000 Tax-Credit, AccuriZ, homeowners, Housing in Crisis, property data, real estate report
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Housing News: 10/05/09 October 5, 2009Posted by John Watch in News Feed.
Tags: Housing in Crisis, housing market, property data, public records, real estate news
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For statistical reports on property data from public records and property valuation click here.
A Declining Inventory of Unsold Homes September 28, 2009Posted by John Watch in AccuriZ Reports, News Feed.
Tags: home inventory, home sales activity, Housing in Crisis, Oversupply, real estate news
As the news of declining sales for existing homes has captured headlines as of late, the underlying highlight of a declining inventory of unsold homes is encouraging news for the housing market. At the end of August, total housing inventory dropped 10.8% to 3.82 million existing homes for sale, representing a proposed 8.5-month supply and the lowest level seen in a year (not seasonally adjusted). Real estate is cyclical, seasonal and emotional, so declining sales for existing homes is expected, as the seasonal cycle wraps up and the $8,000 tax credit comes to a close. What’s more significant is the decline in housing inventory.
The Housing in Crisis report discussed the extreme oversupply of housing as a primary factor in the housing boom. Using this report, which utilizes a 3.5 million growth rate in population at a 2.7 average unit size, 1.3 million new housing units can be absorbed annually. This means that it will take three years for a complete housing absorption in the market. Until this happens, property values will remain flat.
What would be interesting to know is the details of the 3.82 million existing homes on the market. Does this number include new construction? What exactly qualifies as an existing home? Based on various reports I’ve searched, the 3.82 million represents homes available for sale which would not include new construction if true. Regardless, this news of declining inventory is a great sign of steps in that necessary direction. As the market corrects itself with property values, inventory and prices, a housing recovery is in place.
Housing Market News: 9/18/09 September 18, 2009Posted by John Watch in Uncategorized.
Tags: $8000 Tax-Credit, homeowners, Housing in Crisis, housing market, housing recovery, mortgage rates, property data, public records, real estate news
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For property data from public records, statistical analysis and market reports click HERE.
Square Footage Matters: Larger Homes Headed for Obsolescence? September 14, 2009Posted by John Watch in News Feed.
Tags: Housing in Crisis, housing market, property data, public records, square footage
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A recent article on the Wall Street Journal Blog discussed the median household income over the last decade in relation to the average square footage increase of new single family homes. While the median household income has not changed significantly over the last decade, the average square footage has increased dramatically. Square footage matters, and our Housing In Crisis report produced months ago discussed this booming trend:
The Housing in Crisis report indicated that the variance increase in the average to median sale price from 6% to 22% can be most notably attributed to building size. Property data from public records noted that during the recent construction boom, many areas of the country experienced home sizes exceeding 2,200 square feet by the end of 2008.
Essentially, homes got larger while homeowners’ pockets didn’t. Couple this with significant overbuilding and easy lending and the keys to a housing boom are in place. Now with the economy looking towards recovery, this excess of larger homes – or “McMansions” – could suffer from a demand shortage in some areas. This also forces builders to consider new construction with smaller floor plans to accomodate buyers. Will larger home values drop to meet demand? Are we seeing a halt to larger construction for some time? These answers remain to be seen.
What is certain is that square footage matters. As the market begins correction, the basic economic laws of supply and demand should return back to balance.
Latest News on Housing Market: Not a Surpise August 26, 2009Posted by John Watch in AccuriZ News, News Feed.
Tags: data, Excess Growth, home affordablity, Home Sales, Housing in Crisis, housing market, housing recovery, property data, public records
The latest news on property data and Home Prices should not come as a surprise and we should not begin celebrating an end to the crisis. In our article Cyclical, Seasonal and Emotional, we discussed the three critical phases of real estate selling patterns that have attributed to the housing bust.
The latest news and public records indicate that these critical phases are performing to historical levels. That is, the summer seasonal market is showing a correction to the cyclical change that began in 2007. Now the million dollar question is, will the fall seasonal market (which affects Florida, Arizona and Nevada) continue to show recovery or will the markets pause until the next “Selling Season in 2010?”
Our report: Housing in Crisis (published in March 2009) addressed the broader issue of excess housing. Again, there is good news on this front. The excess housing is being absorbed at an annualized rate of about 1 million units. Having a glut of 5 million units at the end of 2008, this means we have another three to four years before the overall markets start to recover.
Housing Recovery is the focal point here. We predict that the Northeast will continue to show stability, with modest corrections in local markets from 3% to 5% through the end of 2010. The Midwest remains strong and will experience similar stability. In the five biggest areas where excess housing still dictates selling patterns, we are predicting that Arizona will recover sooner than sections of Florida and Vegas.
The latest news on the housing market is not a surpirse. Recovery and Stability are the focal points and we should start to see signs of this in the upcoming months.
No one should be surprised when the next Housing Index comes out in September which will show a further strengthening of the market and continued adjustment in housing values in an upward trend. Our report Median Sales Price published in March of 2009 indicated that the overall Median Sales Price would move upward to $215,000 to $220,000 by year end. The current median sale price as reported by the Commerce Department is a $210,000, an increase of over 5% from the low of $201,400 early this year.
Another Housing Boom or Stability? August 25, 2009Posted by John Watch in News Feed.
Tags: foreclosure, Housing in Crisis, housing market, housing recovery, property data, public records, real estate news
As we emerge from the wreckage of this housing bust, economist, analyst and reporters across the nation are in search of the next statistic on property data signaling an end to the downward spiral. For some, the boom days are desperately desired again, and the attention-grabbing headlines today reflect this point. But real estate is Cyclical, Seasonal and Emotional, and a return to the days of old does not seem feasible in the near future.
In today’s news stories, statistics and public records on the housing market are all reflected against the recent boom years. Seasonal upticks are overemphasized to signal a rebound. Government-incentives (while effective) are misinterpreted for natural correction. But the process of recovery is not a sprint, it is a marathon. We as a people continually expect a quick-fix solution to all situations, but the housing market simply does not work this way.
With an oversupply of housing remaining and foreclosures rising, expect a gradual stabilization of the market over the next few years. During the recent boom, prices of homes were severely overpriced and overbuilt. The housing market does not need another housing boom, it needs stability.
Afternoon Real Estate News:8/17/09 August 17, 2009Posted by John Watch in News Feed.
Tags: Home Sales, homeowners, Housing in Crisis, housing market, mortgage rates, real estate, real estate news, real estate report
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Afternoon Real Estate News: 8/13/09 August 13, 2009Posted by John Watch in News Feed.
Tags: Home Sales, homeowners, Housing in Crisis, housing market, mortgage rates, real estate news
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Afternoon Real Estate News: 8/11/09 August 11, 2009Posted by John Watch in News Feed.
Tags: homeowners, Housing in Crisis, housing market, price per square foot, real estate news, short-sales
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