Wednesday, June 12, 2019 / by Vanessa Saunders
A lot is happening in the world, and it’s having a direct impact on the housing market. The reality is this: some of it is positive and some of it may be negative. Some we just don’t know yet.
Watch the following three areas of the housing market: interest rates, building materials, and the outlook for an economic slowdown. They are critical to understanding the real estate market in the Hudson Valley.
1. Interest Rates
One of the most important things to consider when buying a home is the interest rate you will be charged to borrow the money. In our recent post we posed the question, “Are Low Interest Rates Here To Stay?” The latest information from Freddie Mac makes it appear they are. We are currently at a 21-month low in interest rates.
2. Building Materials
Talk of tariffs could also affect the housing market. According to a recent article, the National Association of Home Builders reports tha ...
Thursday, May 30, 2019 / by Vanessa Saunders
High above the Hudson River with panoramic views of Manhattan and New Jersey, One Park re-defines modern luxury living. This 14-story condominium building is setting a new bar in the luxury real estate market. Owners enjoy the sweeping views through floor to ceiling windows, a glass window wall façade especially designed to incorporate elements of the building’s riverfront location.
Beyond the views, these condominiums with their open living spaces and 50-foot balconies are a paragon of design in residential destination. The eat-in kitchen features a breakfast bar, chefs appliances, and top-of-the-line finishes. It includes Thermador Pro Series stainless steel appliances: a fully integrated refrigerator, gas range and oven, range-top with vented hood, integrated dishwasher and a 24-inch drawer microwave. Polished Cielo Quartzite covers countertops and backsplash over stainless steel under-mount sinks. Custom white lacquer kitchen cabinets are dressed with brushed nickel h ...
Thursday, April 18, 2019 / by Vanessa Saunders
Last fall, some predicted that the 2019 residential real estate market would be a disaster. There was even belief we might experience a housing crash like the one that occurred during the last decade.
However, according to two separate reports*, buyer demand dramatically increased over the last three months, leading into this spring buyers’ market (the March data is not yet available).
Both the ShowingTime Showing Index and the National Association of REALTORS Buyer Traffic Index show that buyer demand has increased in each of the last three months.
Why the increase in demand? Increased buying power.
According to the National Association of Realtors’ Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.
“Due to the combination of falling home prices and mortgage rates, the income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a me ...
Wednesday, April 17, 2019 / by Vanessa Saunders
Every month, the National Association of Realtors (NAR) releases their Seller Traffic Index as a part of their Realtors Confidence Index. In the latest release, NAR reported that homeowners have been reluctant to sell their houses. This is reflected when broken down by state. Only 11 states have a stable level of seller traffic compared to the remainder of the country, which came in with a weak rating.
As we can see in the following table, the number of people who moved last year is half of what the rate was in the 1980s.
This does not come as a surprise, as tenure length (the number of years someone owns a home before moving again) among existing homeowners has increased. It has risen from an average of 6 years from 1985 to 2008, up to 9.5 years over the last few years. This is shown in the graph below:
As we can see, there is a pent-up seller demand!
What led to this change in behavior? Falling prices during the housing crisis led to many homeowners having negat ...
Tuesday, March 19, 2019 / by Vanessa Saunders
Last week, the National Association for Business Economics released their February 2019 Economic Policy Survey. The survey revealed that a majority of the panel believe an economic slowdown is in the near future:
“While only 10% of panelists expect a recession in 2019, 42% say a recession will happen in 2020, and 25% expect one in 2021.”
Their findings coincide with three previous surveys calling for a slowdown sometime in the next two years:
The Pulsenomics Survey of Market Analysts
The Wall Street Journal Survey of Economists
The Duke University Survey of American CFOs
That raises the question: Will the real estate market be impacted like it was during the last recession?
A recession does not equal a housing crisis. According to the dictionary definition, a recession is:
“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.&r ...