{"id":733,"date":"2016-03-25T10:37:16","date_gmt":"2016-03-25T10:37:16","guid":{"rendered":"http:\/\/team.simplyfreedom.ws\/?p=733"},"modified":"2016-05-05T07:52:47","modified_gmt":"2016-05-05T07:52:47","slug":"corelogic-cash-sales-share-in-2015-lowest-in-seven-years","status":"publish","type":"post","link":"http:\/\/team.simplyfreedom.ws\/index.php\/corelogic-cash-sales-share-in-2015-lowest-in-seven-years\/","title":{"rendered":"CoreLogic – cash sales share in 2015 lowest in seven years"},"content":{"rendered":"

Published on: Mar 25, 2016 @ 10:37<\/b><\/span> am<\/p>\n

CoreLogic – cash sales share in 2015 lowest in seven
\nyears<\/p>\n

Cash sales accounted for 33.4% of total home sales in
\nDecember 2015 and 33.9% of total home sales for the
\nfull year 2015. The full year 2015 cash sales share was
\nthe lowest since 2008. The December cash sales share
\nwas\u00a0 down 3.3 percentage points year over year from
\n36.7% in December 2014. On a month-over-month basis,
\nthe cash sales share fell by 2.8 percentage points in
\nDecember 2015 compared with November 2015. The month
\nover month decrease in cash sales share was larger than
\nnormal for the month of December, indicating that the
\nelevated share reported for November, and attributed to
\nthe new federal mortgage rules (TRID), was temporary.
\nThe cash sales share peaked in January 2011 when cash
\ntransactions accounted for 46.6% of total home sales
\nnationally. Prior to the housing crisis, the cash sales
\nshare of total home sales averaged approximately 25%.
\nIf the cash sales share continues to fall at the same
\nrate it did in December 2015, the share should hit 25%
\nby mid-2017.<\/p>\n

Real estate-owned (REO) sales had the largest cash
\nsales share in December 2015 at 59.2%. Resales had the
\nnext highest cash sales share at 33.4%, followed by
\nshort sales at 30.9% and newly constructed homes at
\n15.4%. While the percentage of REO sales that were
\nall-cash transactions remained high, REO transactions
\naccounted for only 6.9% of all sales in December 2015.
\nIn January 2011 when the cash sales share was at its
\npeak, REO sales represented 23.9% of total home sales.
\nResales typically make up the majority of home sales
\n(about 79% in December 2015), and therefore have the
\nbiggest impact on the total cash sales share.\u00a0 Delaware
\nhad the largest cash sales share of any state at 57%,
\nfollowed by Alabama (50.1%), New York (46.5%), Florida
\n(46.3%) and Mississippi (45%). Of the nation\u2019s largest
\n100 Core Based Statistical Areas (CBSAs) measured by
\npopulation, Detroit, Mich. had the highest cash sales
\nshare at 62.7%, followed by West Palm Beach-Boca
\nRaton-Delray Beach, Fla. (53.4%), Miami-Miami
\nBeach-Kendall, Fla. (53.2%), Fort Lauderdale-Pompano
\nBeach-Deerfield Beach, Fla. (51.2%) and North
\nPort-Sarasota-Bradenton, Fla. (51%). Syracuse, N.Y. had
\nthe lowest cash sales share at 12.5%.<\/p>\n

Fourth-quarter GDP revised up; corporate profits fall
\nUS economic growth slowed in the fourth quarter, but
\nnot as sharply as previously estimated, with fairly
\nstrong consumer spending offsetting the drag from
\nefforts by businesses to reduce an inventory overhang.
\nGross domestic product increased at a 1.4% annual rate
\ninstead of the previously reported 1.0% pace, the
\nCommerce Department said on Friday in its third GDP
\nestimate.\u00a0 GDP growth was initially estimated to have
\nrisen at only a 0.7% rate. The economy grew at a rate
\nof 2.0% in the third quarter and expanded 2.4% for all
\nof 2015.\u00a0 Economists polled by Reuters had expected
\nthat fourth-quarter GDP growth would be unrevised at a
\n1.0% rate.\u00a0 The upward revisions reflected a stronger
\npace of consumer spending than previously estimated.<\/p>\n

Consumer spending, which accounts for more than two
\nthirds of US economic activity, rose at a 2.4% pace
\nrather than the 2.0% rate reported last month. That
\nreflected more consumption of services than previously
\nestimated.\u00a0 The fairly solid pace of consumer spending
\nunderscores the economy’s underlying strength and
\nshould further allay fears of a recession, which
\ntriggered a massive stock market sell-off early this
\nyear.\u00a0 Spending is being supported by a tightening
\nlabor market, which is steadily lifting wages, and
\nrising house prices.\u00a0 Gasoline prices around $2 per
\ngallon are also helping to underpin household
\ndiscretionary spending.\u00a0 Inventory investment was
\nrevised lower. Still, inventories remain high relative
\nto domestic demand.\u00a0 Businesses accumulated $78.3
\nbillion worth of inventory rather than the $81.7
\nbillion reported last month. As a result, inventories
\nsubtracted 0.22 percentage point from GDP growth
\ninstead of the previously reported 0.14 percentage
\npoint.<\/p>\n

Zillow – February market report: peeking at home value
\npeaks<\/p>\n

Median home values in more than a quarter of the
\nnation\u2019s metro housing markets are currently, or were
\nrecently, as high as they\u2019ve ever been.<\/p>\n

In February, home values rose 4.3% year-over-year to a
\nZillow Home Value Index of $184,600.\u00a0 Median home
\nvalues in more than a quarter of the nation\u2019s metro
\nhousing markets are currently, or were recently (within
\nthe last year), at peak and as high as they\u2019ve ever
\nbeen, according to the February Zillow Real Estate
\nMarket Report. But what do home value peaks really
\nmean?\u00a0 As with most things in real estate, the answer
\ndepends on where you are.\u00a0 The national Zillow Home
\nValue Index was $184,600 in February, 5.9% below the
\nrecord median home value set in mid-2007. But over the
\npast year, many housing markets in the South,
\nespecially Texas and Tennessee, have joined many
\nWestern housing markets in blowing past their previous
\nmedian home value highs. Dallas home values set a new
\nrecord at $180,700 in February, up 13.7% from last
\nFebruary. Nashville home values rose 9.5% to a median
\nof $189,100.<\/p>\n

In a general sense, the idea of home values being at
\ntheir \u201cpeak\u201d is easy to take out of context. In a
\nnormal market \u2013 in which nominal home values grow
\nfairly consistently year after year at a roughly 2% to
\n3% annual pace \u2013 home values are always reaching new
\npeaks. In this example, home values in Anywhere, USA,
\ncan be reliably counted upon to be modestly higher this
\nyear than they were last year, and to be a bit higher
\nnext year than they are this year. Aside from periodic
\nslowdowns or small dips in home values caused by local
\neconomic factors, nominal home values should always
\njust keep chugging slowly upward in normal times.\u00a0 But
\nthe past decade-plus has been anything but normal for
\nUS housing, which has distorted this definition of
\n\u201cpeak\u201d home values. By now we\u2019re all familiar with
\nhousing\u2019s rough arc in the 21st century: a rapid
\nacceleration in home value growth between roughly 2000
\nand 2007, followed by an almost equally rapid decline
\nfrom May 2007 through early 2012 and then a steadier
\nclimb back again in more recent years. The very broad
\nnature of last decade\u2019s housing boom and bust means
\nthat the majority of local markets have followed a
\nsimilar path as the US as a whole, though the severity
\nof their local booms and busts and exact peak and
\ntrough dates will vary somewhat.<\/p>\n

But not all local markets experienced the housing boom,
\nbust and recovery the same way. Some markets just kept
\nchugging away slowly, never really falling much in the
\nfirst place. It has taken others years to slowly claw
\ntheir way back to pre-recession levels after a
\ndifficult bust. And still others had only a mild bust
\nperiod, recovered quickly and have been setting new
\npeaks for years.\u00a0 Pittsburgh is a good example of a
\nmarket that has just kept chugging along, with no clear
\nboom and bust period, only steady growth over the past
\ntwo decades. Rather than experience a sharp dip during
\nthe bust, home values in the Pittsburgh area more or
\nless flattened out without falling too much between
\n2008 and 2013, before resuming their somewhat more
\nrapid rise during the recovery. Far from being a cause
\nfor concern, the fact that home values in Pittsburgh
\nare currently hovering very near their \u201cpeak\u201d is really
\njust a sign of remarkable stability in the market.
\nBoston is an example of a market that had a clear
\nrun-up in home values, a distinct decline during the
\nbust, and a long recovery over the past few years.
\nDuring the boom years, home values in Boston peaked
\nearly relative to the nation, at $384,900 in September
\n2005. What followed was a long six-year period of
\nfalling home values, reaching bottom in November 2011
\nat $311,800, a drop of almost 19%. It took until
\nJanuary 2016 for home values in Greater Boston to
\nsurpass their prior peak. Home values in Greater Boston
\nare, after years of bust and recovery, finally starting
\nto break new ground again, and look to be on a
\nsustainable growth path going forward.<\/p>\n

Finally, a market like Denver is indicative of a market
\nthat quickly shook off the bust and has taken off like
\na rocket in recent years. Prior to the recession, home
\nvalues in the Denver area peaked at $237,600 in May
\n2006. During the bust, home values fell to a low of
\n$207,300 by August 2011. By July of 2013, Denver-area
\nhome values had already surpassed their earlier peak,
\nand haven\u2019t slowed down since. Currently, home values
\nin Denver stand at $326,300 \u2013 37.3% higher than May
\n2006 values, and up a whopping 57.4% from their August
\n2011bottom.\u00a0 This rapid growth in home values is
\nlargely driven by Denver\u2019s own massive population
\ngrowth over the past decade-plus, combined with a
\nlimited supply of new homes for sale. This kind of
\nrapid and unflagging growth could be worrisome, and may
\nindicate a local bubble starting to form in Denver and
\nsimilar markets like the Bay Area. But even so, rapid
\ngrowth on its own isn\u2019t enough to indicate a bubble as
\nlong as this growth is driven by solid underlying
\neconomic fundamentals like strong job and wage growth,
\ntrue housing demand and limited supply and not rampant
\nspeculation \u2013 which is the case in Denver.\u00a0 So while
\ntaking a peek at peak home values naturally piques our
\ninterest and is useful in determining how far some
\nmarkets have come and how far others still have to go,
\ninterpreting what it really means is all a matter of
\nperspective.<\/p>\n

In February, the median US home value rose 0.2% from
\nJanuary and 4.3% from February 2015, according to the
\nZillow Home Value Index. US home values have grown on a
\nyear-over-year basis for 44 straight months.\u00a0 Home
\nvalues in 26 of the nation\u2019s 35 largest metro markets
\ngrew faster year-over-year than the nation\u2019s 4.3%
\nannual pace in February. Home values grew by more than
\n10% per year in six of those large metro markets:
\nDenver (up 14.5% year-over-year), Dallas (13.7%),
\nPortland (13.4%), San Jose (11.4%), San Francisco
\n(10.9%) and Miami (10.5%). None of the nation\u2019s largest
\nmetros experienced annual home value declines in
\nFebruary.\u00a0 The US median rent in January was $1,383 per
\nmonth, up 0.1% from January and 2.6% from February
\n2015, according to the Zillow Rent Index. US rents have
\ngrown year-over-year for 42 consecutive months.\u00a0 Median
\nrents in all but one of the nation\u2019s 35 largest metro
\nmarkets grew year-over-year to some extent, with only
\nCleveland experiencing an annual decline (-1.2% from
\nFebruary 2015). Rents grew fastest year-over-year in
\nthe San Francisco (up 10.5% from January 2015),
\nPortland (up 8.7%) and San Jose (up 8%) metros.<\/p>\n

Outlook<\/p>\n

Looking ahead, Zillow expects national home values to
\ncontinue growing, rising another 2.3% through February
\n2017. Rents are also expected to keep growing over the
\nnext year, at a 1.7% pace through February 2017.\u00a0 The
\nnew home value records being set in a number of markets
\nmean we\u2019re no longer making up ground lost during the
\nhousing recession \u2013we\u2019re laying a new path forward,
\nbased on demand for housing and economic growth
\nthroughout the economy. In some markets, these new
\nhighs are a return to normalcy, and in others are a
\nreminder that not all markets react the same to broader
\neconomic trends.\u00a0 Finally, the fact that many other
\nmarkets are still off pre-recession peaks by double
\ndigits \u2013 places like Las Vegas (down 33.8% from Q2 2006
\npeaks) and Orlando (off by 29.5% from prior peaks) \u2013
\nmay not even mean those markets are far from full
\nrecovery. Instead, their long path back just highlights
\nhow extraordinarily inflated home values were in those
\nareas during the housing bubble.<\/p>\n

US weekly jobless claims up<\/p>\n

The number of Americans filing for unemployment
\nbenefits rose last week while revisions for prior weeks
\nshowed the labor market was much stronger than
\npreviously thought.\u00a0 Initial claims for state
\nunemployment benefits increased 6,000 to a seasonally
\nadjusted 265,000 for the week ended March 19, the Labor
\nDepartment said on Thursday. The prior week’s claims
\nwere revised to show 6,000 fewer applications received
\nthan previously reported.\u00a0 Economists polled by Reuters
\nhad forecast claims rising to 268,000 in the latest
\nweek. The government also revised data going back to
\n2011, which showed claims trending lower than
\npreviously reported. Claims for the week ended March 5
\nwere the lowest since November 1973.<\/p>\n

WSJ – more Americans are again moving to suburbs than
\ncities<\/p>\n

Economists to real-estate agents have debated\u00a0 whether
\nthe housing boom and bust of the last decade has
\ndramatically remade the way Americans live or merely
\ncreated a temporary disruption.\u00a0 US Census data
\nreleased Thursday provides strong support for the
\nlatter thesis\u2014that shifts in where Americans move were
\nmerely temporary, according to analysis by Jed Kolko, a
\nsenior fellow at the Terner Center for Housing
\nInnovation at the University of California, Berkeley.
\nFor one thing, the rate at which Americans are moving
\nto the suburbs is once again outpacing the rate at
\nwhich they are moving to cities. That picks up on a
\ndecades long trend that only very temporarily reversed
\nduring the recession.\u00a0 Urban counties grew by 0.8% in
\n2015 to roughly 77 million people, compared with
\nsuburban counties, which grew by nearly 1% to 159
\nmillion people. Mr. Kolko defines counties as urban
\nbased on how dense they were as of the 2010 census.
\nOverall, the US population grew by 0.8% from 2014 to
\n2015, or a difference of about 2.5 million people.
\nSuburbs have been outpacing cities in population growth
\nfor decades. In 2001, suburbs grew about 1.2% while
\ncities grew by about 0.7%.\u00a0 The trend was exacerbated
\nby the housing boom, when easy mortgages helped buyers
\nafford homes being built at a rapid pace in far-out
\nsuburbs.\u00a0 In 2006, suburbs grew by 1.5% while cities
\ninstead actually lost nearly 0.4% of their population.<\/p>\n

Cities grew faster than suburbs for one year during the
\nlast decade, in 2011. While much has been written about
\nthe revival of cities, the overall population trends
\nunderscore that people flocking to cities remain a
\nselect class, mostly of the young, educated and
\naffluent who can afford rising prices. In the meantime,
\nAmerica overall continues to suburbanize.\u00a0 \u201cRich, young
\npeople are outbidding others for urban housing and so
\nthe faster growth in the suburbs certainly reflects
\ntight housing supply in dense neighborhoods,\u201d Mr. Kolko
\nsaid.\u00a0 Another decades long trend that has re-emerged is
\nthe growth of the South and the West at the expense of
\nthe Northeast and the Midwest. The South and West both
\nhad population growth of 1.2% in 2015, far ahead of
\n0.2% growth in the Northeast and Midwest.\u00a0 During the
\naftermath of the housing bust, the South and West saw
\nsharp declines in the rate of population growth, while
\nthe Northeast and Midwest held relatively steady,
\nalthough they continued to grow more slowly.\u00a0 Some
\nfamiliar metro areas also emerged as big population
\nlosers and winners. Austin was the biggest population
\ngainer for four years running from 2011 to 2014. But
\nthis year it was surpassed by Cape Coral-Fort Myers,
\nFla.\u2014also the leader in population growth during the
\nbubble from 2004 to 2006.\u00a0 Youngstown, Ohio, has been
\nthe biggest population loser since 2010 and continued
\nto hold that title. It also lost the most population
\nfor most of the boom from 2003 to 2005,\u00a0 but it was
\nsurpassed for a few years by New Orleans and Detroit.<\/p>\n","protected":false},"excerpt":{"rendered":"

Published on: Mar 25, 2016 @ 10:37 am CoreLogic – cash sales share in 2015 lowest in seven years Cash sales accounted for 33.4% of total home sales in December 2015 and 33.9% of total home sales for the full year 2015. The full year 2015 cash sales share was the lowest since 2008. The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[39],"tags":[151,91,69,154,155,152,153,41,61],"_links":{"self":[{"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/posts\/733"}],"collection":[{"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/comments?post=733"}],"version-history":[{"count":2,"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/posts\/733\/revisions"}],"predecessor-version":[{"id":800,"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/posts\/733\/revisions\/800"}],"wp:attachment":[{"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/media?parent=733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/categories?post=733"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/tags?post=733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}