40% of households in the US now think it is a good time to sell. This is up from 30% in April.
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Sometimes one pays most for things that cost nothing. -- From Commercial Lending
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The housing market is now 61% of the way back to normal – a big jump from 35% one year ago. That’s the first time Trulia’s Housing Barometer has crossed 60%. The recovery has reached full-fledged teenager status, with awkward, sudden growth spurts and parents – the Fed – who now threaten to take away its allowance by winding down measures that pushed mortgage rates down to historic lows, writes Trulia.
Before long, the recovery should make it into adulthood, but it will face some grown-up challenges in the next couple of years: still-tight mortgage credit for many borrowers, a slow jobs recovery for young adults, and unaffordable housing in large coastal markets, Trulia ($30.20 -0.505%) reported. Jed Kolko in Trulia
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What did it say? The data covers various cities plus national composites. For the 12 months ending April 2013, average home prices rose 12.1% in the 20-city composite. In April alone, composite prices jumped 2.5%. This was the highest monthly gain in S&P/Case-Shiller history.
Is this a recovery? After the last few years, it may be more of a dead-cat bounce. However, the report had a few other positive signs.
All 20 cities in the composite had annual price gains for the fourth-consecutive month.
Atlanta, Dallas, Detroit and Minneapolis posted their highest-ever annual gains in April.
In April, Detroit was the only city in the index where housing prices fell.
Atlanta, Las Vegas, Phoenix and San Francisco are the hottest markets, with home prices up more than 20% since the same time last year.
As of April 2013, average home prices across the United States are back to their early 2004 levels for both the 10-City and 20-City Composites. Measured from their June/July 2006 peaks, the peak-to-current decline for both Composites is approximately 26-27%. The recovery from the March 2012 lows is 13.1% and 13.6%, respectively.
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SAC FCU, Bellevue, Neb., is offering a new mortgage that charges a 3% down payment, no prepayment penalty, terms up to 30 years and in-house servicing.
This product is aimed at first-time home buyers, but the credit union said it also may be beneficial to move-up home buyers.
First-time home buyers may qualify for no lender closing costs.
“This program can help buyers who need down payment assistance or reduced out-of-pocket expenses at a time when home sales are gaining strength,” said Alan Stoltenberg, vice president of mortgages at the $675-million credit union.
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The average age of a consumer looking to buy a second home is 50, said Chris Kelsey, president of Long Cove, a private community on Cedar Creek Lake built to give Dallas-area families a close-to-home getaway.
What’s interesting, notes Kelsey, is the language used by the Baby Boomers compared to Generation X. Boomers often refer to their second home as a "vacation home," while Gen X typically calls it a "second home."
"This distinction is important to them because they don’t see their resort property as a place for vacation," said the Kelsey & Norden Resort Real Estate Survey. "Instead, they think of it as an extension of their regular lives, a second home where they are connected to a community of like-minded friends and can provide their kids an alternative experience to their urban or suburban neighborhoods. And with the shift comes a similar shift in vocabulary."
Regardless, second-home sales seem to be flourishing, -- Megan Hopkins at HousingWire ------------------------------------------------ James Fitzgibbons of the Highlander fund predicts a drop in the stock market of 3000 points by the end of the year. -- quoted by Dick Morris in his Lunch Alert --------------------------------------------------
It is a possible a shortage in skilled labor for housing construction jobs could slow down a recovery in the sector, said Fitch Ratings.
“A deficit in workers, particularly skilled trades, combined with a lack of available finished lots and continued tight mortgage qualification standards could dampen growth momentum, but won't likely lead to disastrous national numbers for housing, we believe,” a report from Fitch noted. -- Brad Finkelstein in Origination News
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Nationwide housing starts rose 6.8 percent to a seasonally adjusted annual rate of 914,000 units in May due primarily to increased production on the multifamily side, according to newly released data from HUD and the U.S. Census Bureau. -- Sonja Bullard in Angel Oak Weekly
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Pending home sales soared in May, reaching their highest level in seven years, the National Association of Realtors reports.
NAR’s Pending Home Sales Index rose 6.7% to 112.3 in May, up from a downwardly revised 105.2 index score in April. From last year, the index is up 12.1%. -- Megan Hopkins in HousingWire
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A boy makes his girl jealous of other women, a true gentleman makes other women jealous of his girl.
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Jill Pierce is Team Leader for RealEstateAuctions.com
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