Home Shopping: Should you buy new?

Last year housing permits hit their highest level since 2008, according to the Census Bureau, and new-home sales grew 20% from the prior year.

“Builders are more optimistic than they have been for several years,” says Patrick Newport, an economist at IHS Global Insight.

An untouched abode offers advantages, of course, such as a sleek modern layout and few repairs. Buying an existing home, however, may allow you to seal the deal faster and can offer better short-term price appreciation.

Head-to-head comparisons can help you decide which choice better fits your priorities.  To see the full article and compare which is better for you, click here.

Foreclosure Sales fall in Dallas area, nation

By: Steve Brown

Researchers at CoreLogic said Tuesday that during the 12-month period ending in March, 10,361 Dallas area homes were sold by lenders at foreclosure auction.

That’s down about 10 percent from the previous 12 month period.

In March 1.3 percent of Dallas-area homes with a loan were in foreclosure – less than half the national rate of 2.8 percent.

About 1.1 million U.S. homes were in foreclosure, CoreLogic found.

“In March, completed foreclosures were down 52 percent from the peak in 2010 and almost all of the top 100 major metropolitan areas have declining foreclosure rates,”  Dr. Mark Fleming, chief economist for CoreLogic, said in the report.  “The foreclosure rate nationally is down 23 percent relative to a year ago, signaling continued reduction in the stock of distressed assets.”

Dallas-area home prices grow at record pace in Case-Shiller report but trail other U.S. cities

Home price gains in the Dallas area are less than half what they are in places like Phoenix, San Francisco and even Detroit, according to Case-Shiller. I know we want to be first, but we are first in a better way. While other parts of the country experienced “artificial inflation” of home values, we in DFW were more modest, therefore our loses were lower than the rest of the country and our rebound with be less.  Moderation has kept our economy strong.

To see the full article, click here.

Financial Reasons to Buy a Home NOW! (Part I)

March 28, 2013

The KCM Crew

Part I – Prices Are Rising at an Accelerated Rate

prices upThe price of a home is the major consideration when deciding whether or not it makes financial sense to purchase a house. Experts are not only projecting that house values will increase in 2013. They are also more optimistic in the level of appreciation they are projecting as the market begins to heat up. Here are some examples:

The Home Price Expectation Survey

The latest survey of a nationwide panel of 118 economists, real estate experts and investment and market strategists reveals they project home values to end 2013 up an average of 4.6% according to the first quarter. This is after they had projected a 3.1% increase just three months ago.

Bank of America

In a report titled, Someone Say House Party?, Bank of America analysts revised their projections upward:

“Home prices continue to show momentum amid shrinking inventory and record high affordability, prompting us to revise up our original forecast of 4.7% for home prices this year. We now expect national home prices, as defined by the S&P Case Shiller home price index, to increase 8% this year.”

Capital Economics

According to a report in DSNews, Capital Economics also upgraded their prediction:

“Strong demand and tight inventory have brought existing home sales back to ‘normal’ levels, and further gains are possible, according to the latest market report from Capital Economics. Additionally, market conditions may prompt lenders to “loosen the purse strings slightly” and lend a little more freely.

These conditions, combined with broader economic indicators, lead Capital Economics to revise its previous forecast of a 5% price gain this year up to 8%.”

Morgan Stanley

In an article from HousingWire, Morgan Stanley joined the party:

“Strong momentum in home prices as well as housing activity gave Morgan Stanley analysts enough confidence to upgrade their home price appreciation projections to roughly 7% (from 5%) for 2013, according to its latest global securitized credit report…

“The momentum in most metrics of housing activity is running well ahead of the pace we had expected,” said James Egan, Jose Cambronero and Vishwanath Tirupattur, analysts for Morgan Stanley.”

Not only are prices projected to appreciate. Experts are actually revising their projections upward as demand maintains its momentum.