Home prices up almost 6 per cent
Home prices rose by 5.9 per cent in May compared to a year earlier according to new data from CoreLogic. Its HPI also reveals that prices increased month-over-month by 1.3 per cent nationwide.
“Housing remained an oasis of stability in May with home prices rising year over year between 5 percent and 6 percent for 22 consecutive months,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The consistently solid growth in home prices has been driven by the highest resale activity in nine years and a still-tight housing inventory.”
Expectation for price growth is for 5.3 per cent between May 2016 and May 2017 and for a 0.8 per cent rise in the month to June 2016.
The Pacific Northwest – especially Oregon and Washington – is leading the gains and CoreLogic also expects mortgage rates to remain low due to turbulence in the financial markets.
Refinance mortgages could surge amid Brexit says report
There was a boom for refinance mortgages in the 2008-2014 period with 25 million homeowners making the move as the financial crisis restricted access to new purchase loans and the housing market collapsed. We could be about to see a new boom.
A report from the Urban Institute highlights the effects of Brexit on mortgage rates in the US and that there will be many homeowners who will opt to take advantage of lower rates by refinancing.
Overall, there may be little impact on the US housing market from the Brexit fallout, the report says. That’s because, while low mortgage rates will make homeownership more attractive, there could be other economic factors that are weakened, along with consumer sentiment.
Builders highlight the benefits of log homes
The National Association of Home Builders and the Log and Timber Homes Council have launched their annual celebration of log homes, an American icon.
They have designated July as National Log Home Open House Month to raise awareness of the benefits of wooden homes, including their ‘green’ credentials.
“The log and timber home industry emerged entirely out of consumer demand for this unique style of construction,” said Log and Timber Homes Council Chairman Doug Parsons of Appalachian Log Structures in Ripley, W.V. “This distinctive style of home can suit any homeowners’ needs, whether they’re looking for a small cabin for weekend getaways or a multi-million-dollar estate. Members of the council can work with prospective home buyers to make their dream of owning a log home a reality.”
They are advising potential buyers of log homes to ensure that their purchase has been constructed in line with their code of ethics.