There is record low existing housing inventory, so you think that with mortgage rates being so low that new homes would sell extremely fast. However, the number of months a new home sits on the market until it’s purchased by a buyer has increased. If fact new home sales for June has decreased.
David Rosenberg Points To One Indicator That’s Showing No Sign Of A Housing Recovery
Sam Ro| Jul. 26, 2012, 7:22 PM
David Rosenberg, the bearish economist at Gluskin Sheff, isn’t convinced that the U.S. housing market is on the up and up.
He points to the number of months it takes to sell a new house.
From his note today:
How can it possibly be that the housing market is showing a durable recovery when it is still taking a median of eight months for the builders to find a buyer upon completion of the unit? Up until April 2008 – in the midst of the Great Recession – a number this high was unheard-of, having happened but once previously and that was the peak of the previous housing market meltdown in June 1991. See chart below.
Anaheim Overview
| Median home price is $308,000. Based on a rental parity value of $469,000, this market is under valued. |
| Monthly payment affordability has been improving over the last 1 month(s). Momentum suggests improving affordability. |
| Resale prices on a $/SF basis increased to $214/SF to $215/SF. |
| Resale prices have been weak for 12 month(s). Price momentum suggests weak prices over the next three months. |
| Median rental rates increased $50 last month from $$1,866 to $$1,916. |
| Rents have been slowly rising for 12 month(s). Price momentum suggests slowly rising rents over the next three months. |
| Market rating = 8 |
Proprietary OC Housing News home purchase analysis 
1515 West WAKEFIELD Ave Anaheim, CA 92802
$350,000 …….. Asking Price
$340,000 ………. Purchase Price
5/24/2002 ………. Purchase Date
$10,000 ………. Gross Gain (Loss)
($27,200) ………… Commissions and Costs at 8%
============================================
($17,200) ………. Net Gain (Loss)
============================================
2.9% ………. Gross Percent Change
-5.1% ………. Net Percent Change
0.3% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$350,000 …….. Asking Price
$12,250 ………… 3.5% Down FHA Financing
3.70% …………. Mortgage Interest Rate
30 ……………… Number of Years
$337,750 …….. Mortgage
$88,926 ………. Income Requirement
$1,555 ………… Monthly Mortgage Payment
$303 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$88 ………… Homeowners Insurance at 0.3%
$352 ………… Private Mortgage Insurance
………… Homeowners Association Fees
============================================
$2,297 ………. Monthly Cash Outlays
($235) ………. Tax Savings
($513) ………. Equity Hidden in Payment
$15 ………….. Lost Income to Down Payment
$108 ………….. Maintenance and Replacement Reserves
============================================
$1,671 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$5,000 ………… Furnishing and Move In at 1% + $1,500
$5,000 ………… Closing Costs at 1% + $1,500
$3,378 ………… Interest Points
$12,250 ………… Down Payment
============================================
$25,628 ………. Total Cash Costs
$25,600 ………. Emergency Cash Reserves
============================================
$51,228 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # I12091714 from our database. Please check back soon.
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1.28 miles 3 bd / 2.5 ba 2,400 Sq. Ft. |
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1.4 miles 4 bd / 3.5 ba 2,077 Sq. Ft. |
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The Recession’s Impact on Confidence in Homeownership
While younger folks are oftentimes viewed as being more prone to taking risks than more elderly people, a study found that this idea doesn’t ring true when it comes to buying a home during an economic downturn.
The study was authored by economists from the Federal Reserve Bank of Boston, Anat Bracha and Julian C. Jamison, and examined how the recession affected attitudes toward homeownership.
The study found that people who lived in hardest-hit ZIP codes in 2008 were significantly more likely to be confident about owning a home if they are older (over 58), but are significantly less likely to be confident about owning a home if they are younger.
According to the authors, one reason for this is because younger respondents have more malleable perspectives, whereas older respondents have a worldview that is more difficult to alter. Thus, older respondents may simply interpret the house price drop as a temporary dip in a market that is bound to become stable again, making the downturn a good time to purchase.
A chart in the report showed that the greater the drop in home prices, the less confident individuals under 58 were in the soundness of buying a home. With older individuals, the bigger the drop in prices, the more confident they were in the idea of buying a home.
The study also examined the effects of simply knowing about the recession’s impact versus first-hand experience and how this changes attitudes toward homeownership. The authors found that having information about the market crash is not enough to change individual attitudes. Instead, one must have experienced the crises either by personally enduring a hardship from it or witnessing someone close to them suffer.
“Even an extremely negative experience such as the Great Recession, the worst U.S. economic crisis since the Great Depression, was not enough to shift the attitudes of those who lived through the crisis-and thus had full access to information on its effects-but did not have strong first- or second-hand experience of these adverse effects,” the authors wrote.
The study found that older individuals who experienced a market crash were actually more confident in the idea of buying a home over renting, whereas the younger group of adults who had experience with the real estate crash were marginally less confident in the benefits of owning.