Tag Archives: Home Values

Household net worth improved $1.3 trillion in the second quarter--half as fast as the first quarter--as real estate values grew $626.7 billion, the Federal Reserve reported Wednesday in its quarterly Flow of Funds report. But, with a drop in mortgage debt--including home equity loans and lines of credit--from $9.39 trillion in the first quarter to $9.34 billion in the second--homeowner equity grew to 49.8 percent in the second quarter from 48.1 percent in the first.

Zillow's Home Value Index climbed to $162,100 in August, up 0.4 percent month-over-month and 6.6 percent annually--the largest yearly gain since July 2006, when values rose 7.9 percent. "August marked the end of one of the hottest summer home shopping seasons in years, as home value appreciation rates continued their rocket ride upward--perhaps dangerously so in some metro areas," said Zillow chief economist Stan Humphries, noting that the monthly pace of appreciation has started to moderate.

Home prices rose in July by less than 2 percent for the first time since March but still reached their highest level since August 2008, according to the Case-Shiller Home Price Indices released Tuesday. All 20 cities included in the survey improved both month-to-month and year-to-year. The two surveys have improved both monthly and yearly for 14 consecutive months.

Existing-home sales rose an unexpected 6.5 percent to an annual sales rate of 5.48 million, the National Association of Realtors (NAR) reported Thursday. Economists surveyed by Bloomberg expected existing home sales to drop to 5.255 million from July's originally reported July's 5.39 million sales pace which was unchanged in today's report. The increase in sales came as the median price of an existing single family home in August dipped slightly from July, down $300 to $212,100.

While noting improvement in economic activity and labor market conditions, the Federal Open Market Committee voted Wednesday to continue its policy of near-zero interest rates and its $85-billion-per-month bond-buying program. At the same time, the Federal Reserve's own economic projections suggested the economy might not grow this year as fast as it expected just three months ago.

The number of mortgaged residential properties with negative equity fell more than five percentage points throughout the year's second quarter, CoreLogic reported Tuesday. According to the company's analysis, approximately 2.5 million residential properties returned to a state of positive equity last quarter, bringing the total number to 41.5 million. Meanwhile, 7.1 million homes--or 14.5 percent of all residential properties with a mortgage--were still in negative equity.

According to the Zillow Digs Fall Home Improvement Trend and Spending Survey, 52 percent of homeowners have some sort of home project in the works for the coming months. That number is down from 60 percent in summer, when people are more drawn to work outdoors. The survey's findings show homes with children are far more active in project planning, with 31 percent (versus 19 percent of those without children) planning three or more home improvements. Homes with children are also planning to spend a bit more.

Home prices as measured by CoreLogic increased 12.4 percent year-over-year in July, the company reported in its monthly Home Price Index (HPI) report. "Home prices continue to climb across the nation in July with markets hit hardest during the downturn leading the way," said CoreLogic president and CEO Anand Nallathambi. "Nationally, home prices are now within 18 percent of their peak levels reached in April of 2006." Meanwhile, the Pending HPI indicates that August 2013 home prices will rise 12.3 percent.

Zillow's most recent Negative Equity Report shows approximately 12.2 million homeowners owed more on their mortgage than their home is worth last quarter, down from 13 million in the first quarter and 15.3 million the same time last year. Those 12.2 million underwater homeowners represent approximately 23.8 percent of all homeowners with a mortgage, Zillow said. For the second quarter of 2014, Zillow predicts the negative equity rate will fall to 20.9 percent, lifting an additional 1.9 million homeowners into positive equity.

Home prices rose in June to their highest levels in almost five years, increasing 2.2 percent, according to the Case-Shiller Home Price Indices released Tuesday.