Revised residential design standards available for viewing
PORT ORCHARD – Newly adopted city design standards for new and modified single family residences, duplexes and residential fences can be http://tinyurl.com/ycszl4gs on the City of Port Orchard’s website.
The standards will be effective on Sept. 1.
The City Council coordinated efforts to revise standards with the city’s Planning Commission and city government staff for about eight months. The city said the revisions were made to promote the development of high-quality and attractive residential neighborhoods in Port Orchard.
A public hearing was conducted by the Planning Commission in April. The City Council adopted the new design standards at its June 27 meeting.
For more information about the standards, contact the city’s Community Development department at 360-874-5533 or email@example.com.
New-Home Prices Hit Record High
Daily Real Estate News | Monday, June 26, 2017
The median price for a new single-family home reached a record high in May of $345,800, the Commerce Department reports. Buyers will be paying a huge premium for new construction, as new-home prices are now 16.8 percent higher than they were a year ago.
So far, however, the higher price tags don’t seem to be spooking home shoppers. In May, 61,000 new homes were purchased—a 2.9 percent increase from April and an 8.9 percent increase from a year ago, the Commerce Department reports. “Builders are focused on the mid to upper end of the housing market,” says Joseph Kirchner, realtor.com®’s senior economist. “It means that it will be more difficult to find more affordable homes for first-time buyers, millennials, and low-income people.”
Only 6,000 newly constructed homes sold in May were priced between $150,000 and $199,999. Further, there were about 14,000 sales in the $200,000 to $299,999 range. New homes now cost about 36.8 percent more than previously existing homes, which also reached record-high prices in May.
Regionally, new-home sales increased the most in the West last month, posting a 13.3 percent month-over-month jump, followed by a 6.2 percent increase in the South. New-home sales, meanwhile, fell 10.8 percent in the Northeast and plunged 25.7 percent month-over-month in the Midwest.
Source: National Association of Home Builders and “New Homes Just Keep Getting Pricier, But Buyers Keep Coming,” realtor.com® (June 23, 2017)
Housing Starts Cool Off in January
Housing starts dropped 2.6 percent on a month-over-month basis in January to a seasonally adjusted annual rate of 1.246 million units, primarily due to a 10.2 percent plunge in the multifamily sector, the Commerce Department reported Thursday. Single-family starts, on the other hand, rose 1.9 percent month-over-month to 823,000 units.
“A settling of housing production is in line with what we are hearing from builders, that they are largely optimistic about current market conditions but still face supply-side headwinds and regulatory hurdles,” says Granger MacDonald, chairman of the National Association of Home Builders.
Combined single- and multifamily housing production was on the rise in the Northeast and South in January. In the Northeast, housing production surged 55.4 percent last month and by 20 percent in the South. On the other hand, starts dropped by 41.3 percent in the West and by 17.9 percent in the Midwest, the Commerce Department reported.
Housing production is likely to pick up in the coming months. Issuance of construction permits—a gauge of future construction activity—increased 4.6 percent in January to 1.285 million units. But the bulk of that increase was due to a nearly 20 percent increase in multifamily permits to 477,000 units, the Commerce Department reported. Single-family permits, meanwhile, dropped 2.7 percent in January to 808,000 units.
The Northeast likely will continue to see some of the biggest increases in housing production. Regionally, housing permits increased by the highest amount in the Northeast, rising 29.6 percent in January, followed by a 9.9 percent gain in the South, and a 5.3 percent increase in the Midwest. The West was the only major region to see a decline, dropping 13.2 percent in January.
Jump in rates doesn’t deter homebuyers, as mortgage applications increase 4%
Mortgage rates moved solidly higher last week, but lenders saw no letup in loan demand.
Mortgage application volume rose 4 percent from the previous week. The Mortgage Bankers Association included an adjustment for the Martin Luther King Day holiday. Volume continues to lag last year, however, by 18 percent, mostly due to the falloff in loan refinances since rates shot up after the presidential election.
The Average American Still Can’t Get a Mortgage
Mortgage credit continues to tighten
The U.S. economy may be on the upswing, but your chances of securing a mortgage are not.
That’s according to data released Tuesday by the Federal Reserve Bank of New York, which showed that the total volume of new mortgages actually declined in the second quarter of 2016 from a year earlier, by $39 billion.
Worse, the median credit score for a new mortgage remained quite high at 756. That’s well above the average credit score of 695, and means that the typical American, nearly eight years after the credit crunch and financial crisis, would still struggle to secure a mortgage.
This continued dynamic of tight credit is one likely reason that the American housing market remains hobbled even after prices in many markets have recovered to their pre-financial crisis peaks. With credit unavailable to all but the most qualified Americans, builders are wary of constructing homes aimed at lower income Americans…
Visit http://fortune.com/2016/08/10/americans-cant-get-mortgage/ for the FULL story
Mortgage rates fall back and applications decline as credit increases
After drifting higher for nearly a month, mortgage rates retreated this week but remain within a tight band.
As the markets calmed, home loan rates stabilized. With several key economic reports coming up, volatility could return. An unexpected global event would also cause a jolt to rates. But it seems more likely that they will continue to hover about where they are.
Bankrate.com, which puts out a weekly mortgage rate trend index, found that more than half of the experts it surveyed believe rates will remain unchanged in the coming week.
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average sank to 3.43 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.48 percent a week ago and 3.91 percent a year ago. The 30-year fixed rate hasn’t been above 3.5 percent since late June.
The 15-year fixed-rate average dropped to 2.74 percent with an average 0.5 point. It was 2.78 percent a week ago and 3.13 percent a year ago.
The five-year adjustable-rate average tumbled to 2.73 percent with an average 0.5 point. It was 2.78 percent a week ago and 2.94 percent a year ago.
“Treasury yields fell last week following both the FOMC’s meeting and a disappointing advance estimate for second quarter GDP. Mortgage rates, which had moved up 7 basis points over the past three weeks, responded by erasing most of those gains,” Sean Becketti, Freddie Mac chief economist, said in a statement.
Meanwhile, mortgage applications decreased again this week, according to the latest data from the Mortgage Bankers Association (MBA).
The market composite index — a measure of total loan application volume — fell 3.5 percent from the previous week. The refinance index dropped 4 percent, while the purchase index declined 2 percent.
The refinance share of mortgage activity accounted for 60.7 percent of all applications.
U.S. homeownership rate drops to lowest Since 1965
U.S. homeownership rate drops to lowest Since 1965
The U.S. homeownership rate fell to the lowest in more than 50 years as rising prices put buying out of reach for many renters.
The share of Americans who own their homes was 62.9% in the second quarter, the lowest since 1965, according to a U.S. Census Bureau report Thursday. It was the second straight quarterly decrease, down from 63.5% in the previous three months.
The drop extends a years-long decline from the last housing boom, in part because of tight credit and a shift toward renting in the aftermath of the crash. First-time buyers have been struggling to find affordable properties as low mortgage rates and an improving job market spur competition for a tight supply of listings. Home prices rose 5.2% in May from a year earlier, according to the S&P CoreLogic Case-Shiller index of values in 20 cities released this week.
“One of the biggest hurdles now is affordability,” Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, N.C., said before the Census Bureau report was released. “Home prices are rising so much faster than incomes, so it’s hard for buyers to save for a down payment.”
The homeownership rate reached a peak of 69.2% in June 2004.
The decline may be the result of young people leaving parents’ homes and entering the rental market, which dilutes the number of owner-occupant households, said Ralph McLaughlin, chiefeconomist for data provider Trulia. He said the change from a year earlier, when the rate was 63.4%, isn’t statistically significant because of the margin of error of0.5 percentage points.
“The drop in the homeownership rate this quarter to historical lows isn’t necessarily a bad sign,” McLaughlin said in an e-mail. “This is because renter households are growing at a much faster rate than owner households, reflecting growing confidence of those who were most likely impacted by the foreclosure crisis. Still, low inventory and affordability plagues those who do want to buy a home.”
The homeownership rate for Americans ages 18-34 fell to 34.1% in the second quarter from 34.8% a year earlier, the Census Bureau said. The decline is within the margin of error for that age group of 0.8 percentage points.
FULL ARTICLE: http://www.jsonline.com/business/us-homeownership-rate-drops-to-lowest-since-1965-b99769812z1-388589161.html
Kitsap’s median home price hits $285,000
The median price for homes sold in Kitsap County reached $285,000 last month, as sales activity ramped up and inventory remained low.
The median price for May was 7.6 percent higher than in May of 2015, according to report from Northwest Multiple Listing Service.
The year-to-date (January-May) median home price for the county was $266,914, up about 11.5 percent from the same period of last year.
Prices have increased most dramatically in West Bremerton, where homes are selling for 40 percent more so far this year than in 2015.
Despite the price jump, West Bremerton remains the county’s least expensive submarket.
Home sales also ticked up in May. Pending sales were up 9.4 percent from May 2015, while closed sales jumped 12.5 percent.
The number of homes available for sale inched up to 734, with 608 listings added. Inventory remained 23 percent lower than a year ago.
The months supply of homes — the number of months it would take to sell off all homes on the market if no new listings were added — rested at 1.85. A market is considered balanced when it has a four- to six-month supply.
“Inventory is being squeezed from all directions,” Frank Wilson of John L. Scott in Poulsbo, said in a statement released by NWMLS. “With less than two months of inventory, every new listing seems to draw multiple offers.”
Wilson doesn’t see the inventory crunch easing “for some time to come.” Even if the Fed raises interest rates, he believes shortages will persist because of the backlog of buyers.
VIEW THE FULL STORY HERE: http://pugetsoundblogs.com/minding-your-business/2016/06/09/kitsaps-median-home-price-hits-285000/
Hungry buyers find lean inventory in real estate
Buyers circle new listings like hungry wolves, plucking choice morsels from a skeletal inventory.
“For every house that comes on the market you have four or five buyers waiting for it,” said Frank Wilson, with John L. Scott in Poulsbo. “As fast as they come on, they’re sucked right back off.”
Rabid demand and too-few listings were the trends driving Kitsap’s real estate market in 2015. Home prices, which wallowed through the economic recession, were on the rise across much of the county. Sales were fast-paced, pushing unprepared buyers to the sidelines.
“Increasing demand and decreasing supply made it a very competitive marketplace,” Kitsap Association of Realtors CEO Mike Eliason said.
First-time homebuyer Lindsay Baker waded into the fray in the summer, as she and her husband began searching for a house in East Bremerton. Realizing homes were flying off the market, Baker started checking for listings twice a day. The couple walked through two houses, but other buyers gobbled them up before the Bakers could make a decision.
“By the third one, we made an offer the same day,” Baker said…
READ THE FULL STORY HERE
CoreLogic: 2016 Housing and Mortgage Rate Forecast
Over the next three weeks we will probably be subjected to more housing forecasts for 2016 than ads for Chia Pets. Here is the version provided by Frank Nothaft, senior vice president and chief economist at CoreLogic.
Nothaft presumes, like most in the field, that the Federal Reserve will raise short term rates and predicts that increase will be about one percentage point, achieved gradually, by the end of next year. Homeowners with adjustable rate mortgages or home equity loans can expect to see their payments rise as will people who take on new fixed rate mortgages. The latter will probably rise by about a half-point which will put the 30-year fixed rate mortgage around 4.5 percent by the end of 2016.
Read the full article HERE
SOURCE: Mortgage News Dailt & CoreLogic