Morning Briefing: Buyers lose confidence on rising prices, rates

by Steve Randall10 Apr 2017
Buyers lose confidence on rising prices, rates
The net share of buyers who think now is a good time to buy fell 10 percentage points in March as rising home prices and the expectation of higher mortgage rates dampened sentiment.
The Fannie Mae Home Price Sentiment Index was 3.8 per cent lower overall at 84.5 as job stability sentiment also declined along with the net share of those saying their household income was significantly higher than 12 months ago.
The net share of consumers who believe now is a good time to sell rose 9 percentage points but expectation of lower mortgage rates was down to a new survey low.
“Strong home price appreciation has turned into a double-edged sword for the housing market as it boosted the net share of consumers saying it’s a good time to sell to a record high, surpassing the plunging good time to buy indicator for the first time in the history of the survey,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.
Some renters need more than $1000 more a year to keep up with rents
Renters in Seattle, Los Angeles and Boston need more than $1000 of additional annual income to keep up with rent increases, Zillow says.
Its analysis found that average US renters need a raise of $168 to afford their expected rent increase in the next 12 months, with average rent nationwide rising to $1,420.
"For a long time now, renters have faced an affordability crisis when it comes to housing, and renters in some hot markets will still need significant raises just to keep up with rising rents," said Zillow Chief Economist Dr. Svenja Gudell. "Incomes have a ways to go to bring rental affordability closer to historical levels, but recent gains are being met with slowing rent appreciation, a welcome sign for renters."
Rents are expected to rise $1,248 in Seattle, $1,152 in Los Angeles and $1,140 in Boston.
Homeowner claims 24-bed house is ‘single-family’ dwelling
A North Carolina property owner has gone to court to argue that her 24-bedroom home is a single-family dwelling.
Currituck County ruled in 2013 that the $4.3 million home complied with the neighborhood’s zoning rules in Outer Bank, but that decision was overturned last year when neighbors complained and builders were ordered to stop work.
The Associated Press says that the owner, Elizabeth Letendre, sued the county last month but the county held firm on its decision that the home does not fall within the ‘single-family’ requirement.