housing market

Housing Market: Affordability and Interest Rates Working Against Higher Prices

By Monday, July 20, 2015

Housing MarketThe National Association of Realtors’ Housing Affordability Index has dropped 12% in the first five months of 2015. (Source: National Association of Realtors, last accessed July 16, 2015.)In January, the qualifying income to get a mortgage for an existing median-priced home in the U.S. was $36,576. In May, buying a median-priced home would require $41,712 in income.Let’s be honest; incomes in the U.S. economy haven’t increased by much. Read More

Lennar Corp. (LEN) Beats Expectations with $183 Million Net Profit

By Wednesday, June 24, 2015

LEN Shares Soar as Housing Market RecoversOne of the nation’s largest home builders crushed market expectations on Wednesday June 24th, signalling that a housing recovery may be here at long last.Lennar Corp. (NYSE/LEN) posted strong second-quarter earnings of $0.79 per share, up from $0.61 during the same period last year. Revenue growth skyrocketed 46% to $2.4 billion from $1.64 billion in the previous quarter. (Source: Lennar Press Release, June 24, 2015.)“The homebuilding market continued. Read More

Economic Outlook 2015: Why it’s Positive for Housing

By Wednesday, June 24, 2015

Economic Outlook 2015If you live in one of the top 20 metropolitan areas of the country, you have probably already witnessed a strong appreciation in your house’s value over the past several years. Based on my economic outlook for 2015, I believe there could be more to come for homeowners.If you happen to own property in San Francisco or New York, you know the home prices in these areas have been. Read More

Housing Market: New U.S. Home Sales Up in May

By Tuesday, June 23, 2015

U.S. Homes Climbed in MayIn the month of May, the purchase of new homes in the U.S. reached its highest level in the last seven years, signaling that the housing market is recovering.Sales of new single-family houses beat analysts’ forecasts, up 2.2% during the month of May. Stronger employment and higher disposable income were credited for the rise. (Source: U.S. Department of Housing and Urban Development, June 23, 2015.)Some analysts speculate the. Read More

U.S. Existing Home Sales Jump 5.1% in May to Highest Level Since 2009

By Monday, June 22, 2015

U.S. Existing Home Sales JumpHome prices rose to a six-year high last month, signaling the U.S. housing recovery is starting to pick up momentum.Existing home sales came in at an annualized rate of 5.35 million units in May—their highest since November 2009. This is a 5.1% increase from April’s upwardly revised 5.09 million, and a 9.2% increase year-over-year. So far, existing home sales have been increasing year-over-year for eight consecutive months. (Source: National. Read More

Disposable Income Down, Rent Up; What This Means for the Housing Market

By Tuesday, May 26, 2015

Disposable Income DownThere’s a major problem in the U.S. housing market; the disparity between rent and disposable income growth has widened drastically and is making it harder for renters to become homeowners.Disposal Income Trend Negative in the Last DecadeBefore going into details, let’s look at the chart below. It shows the percentage change in the real disposable personal income of Americans. Real disposable income is simply personal income minus taxes,. Read More

U.S. Home Prices Could Fall This Year

By Friday, February 6, 2015

Home Prices RisingAsk any professional involved in the real estate market and they will tell you that when interest rates are low, it’s a great time to buy. Lower interest rates mean higher affordability because mortgage payments are smaller.In December of 2014, the 30-year mortgage rate tracked by Freddie Mac stood at 3.86%—the lowest since May of 2013. (Source: Freddie Mac, last accessed January 27, 2015.)With mortgage rates in the. Read More

2015 Housing Market Forecast: “Dead Cat Bounce” to End This Year

By Wednesday, January 7, 2015

Housing MarketIn November, existing-home sales in the U.S. declined 6.1% from the previous month. They dropped to the lowest annual pace since May of 2014, falling to 4.93 million units from 5.25 million in October. (Source: “Existing-Home Sales Lose Momentum in November as Inventory Slightly Tightens,” National Association of Realtors web site, December 22, 2014.) December existing-home sales are yet to be released. The numbers for existing-home sales do not bode. Read More

Why the Housing Market Points to Very Weak 2015 Economy

By Monday, November 3, 2014

Housing Market Points to Very Weak 2015 EconomyThe chart below shows us that between April and August of this year, home prices in the U.S. declined. The S&P Case-Shiller Home Price Index is only released 60 days after each month’s end, so while data for September and October are not yet available, based on what I’m about to tell you, five years after the Great Recession, the U.S. housing market is on shaky ground again.According to. Read More

House Prices to Decline in 2015?

By Monday, September 15, 2014

House Prices to Decline in 2015As we progress to the end of 2014, my skepticism towards the U.S. housing market increases. In fact, the fate of home prices in 2015 is in question.I don’t expect an outright collapse of the housing market like the one we saw in 2007, but I see the momentum in housing prices that began in 2012 and picked up in 2013 dissipating for several reasons.First, according to Fannie. Read More

Investors: This Could Send Gold Prices Soaring in 2015
By Michael Lombardi

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From: Michael Lombardi, MBA
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