Tag Archives: Home Values

A majority of experts surveyed by Zillow and Pulsenomics expect large-scale investors will pull out of the housing market in the next few years--and that hopefully means a smoother field for consumer buyers. While their withdrawal will most certainly affect today's still-fragile market--79 percent of those surveyed said the impact would be ""significant or somewhat significant""--Zillow chief economist Dr. Stan Humphries says it wouldn't be the worst thing to happen to housing.

The Surveys of Consumers' Index of Consumer Sentiment, released jointly by Thomson Reuters and the University of Michigan's Survey Research Center, dropped to 81.2 this month from December's 82.5. The monthly decline stands in contrast to the Conference Board's Consumer Confidence Index, which rose for the second straight month in the group's most recent report. The measure of sentiment about current conditions fell slightly to 96.8, while the expectations index was down to 71.2.

LendingTree released recently the results of an online survey conducted near the end of the last year. According to the findings, more than two-thirds--69 percent--of respondents have a positive outlook on housing this year, and 63 percent hold a similar view for the economy at large. With hopes this high, 71 percent of respondents said they are considering selling their home in 2014. Out of that group, the majority said they would have to see their home's value increase before acting.

Despite efforts to bring greater equality to the housing market, research conducted by Zillow suggests black and Hispanic homebuyers still face greater difficulties related to homeownership than whites. The study found blacks and Hispanics were more likely to apply for a mortgage insured by the Federal Housing Administration (FHA) than a conventional loan, and out of those that did go for a conventional mortgage, black and Hispanic applicants were far more likely to be denied.

Despite experiencing greater downward pressures from distressed sales and declining housing activity, home prices rose in November at their fastest monthly pace since summer, according to data from FNC, Inc.'s Residential Price Index (RPI) for the month. FNC's national composite index, constructed using sales data on non-distressed properties, rose 0.5 percent in November, perking up from October's meager 0.3 percent gain. The two narrower 10- and 30-city composites also ticked up, rising 0.6 percent and 0.7 percent, respectively.

According to RealtyTrac's latest data, approximately 9.3 million residential properties in December had a combined loan amount at least 25 percent higher than their market value. The figure represents about 19 percent of all properties with a mortgage. That number was down from 10.7 million deeply underwater homes (about 23 percent of all properties) in September and 10.9 million (26 percent) at the beginning of 2013. Meanwhile, the number of "equity-rich properties" grew to 9.1 million.

Analysts at Clear Capital say the housing market today may be a real-life representation of the old Aesop fable, "The Tortoise and the Hare."

Reports from Redfin agents indicate the fourth quarter was a rough one for homeowners looking to sell.

Zillow's Home Value Index (HVI) stood at $168,900 in November, an increase of 0.6 percent month-over-month. On a yearly basis, the index was up 7.1 percent, reflecting a slight slowdown from the 7.3 percent peak recorded in the summer. For the next 12-month period, Zillow anticipates "moderating influences" will lead to a fairly significant leveling off in appreciation rates, with values rising an estimated 4.6 percent to a national average of $176,731.

The forecast for 2014 includes a few bright spots, a couple of looming clouds, and some normalcy expected to precipitate the market, Realtor.com says in its outlook for the new year. Among the bright spots are the rising tide of positive equity and abating foreclosures. While 2.5 million homeowners rose from underwater during the year's second half, 7.1 million homeowners remain below water. However, "[t]he good news is that prices are expected to continue rising in 2014, which will lift more homeowners into positive territory."