Home prices up 0.8 per cent for June says mortgage lender
Home prices continued higher in June, rising 0.8 per cent in the month and 5.3 per cent year-over-year according to data from mortgage services firm Black Knight Financial.
The HPI value of $265,000 is within 1.1 per cent of a new national peak and shows a 32.6 per cent rise from the bottom of the market.
Prices in June saw the largest increases in Michigan (1.6 per cent) Wisconsin (1.5 per cent) and Oregon and Washington (both 1.4 per cent).
New York, Atlanta and Miami were the metros with the largest gains among the largest markets while Carson City, NV was the metro with the largest rise overall (2.4 per cent).
Positive outlook for commercial real estate
The improving economy should result in a positive period ahead for US commercial real estate.
The National Association of Realtors’ quarterly commercial real estate report shows that vacancy rates for offices are expected to fall 1.5 per cent to 10.4 per cent in the next 12 months followed by retail (1 per cent) and industrial (0.7 per cent).
The vacancy rate for multifamily real estate is expected to rise to 6.1 per cent (from 5.9 per cent) due to new supply of condos.
“The U.S. economy has its flaws and has been stuck in slow-growth mode ever since the Great Recession,” says Yun. “However, it’s still the top performing economy in the world, and U.S.
commercial real estate should continue to remain a stable investment and attractive option for investors even as rates move upward,” commented NAR chief economist Lawrence Yun.
Tightening underwriting conditions for loans is flagged as a concern among realtors. This has largely been driven by increased regulatory demands the report notes.
Americans focused on reducing debt, buying a home
A third of Americans are focused on reducing debts according to a new poll by BMO Wealth Management.
However, when broken down into demographics there is a clear change in priorities. While baby boomers are most likely to say debt reduction is their key goal (35 per cent) for those aged 18-34 almost a third rank saving for a downpayment for a home as their top aim.
The poll also reveals that 42 per cent of Americans are concerned about their ability to meet unexpected expenses such as healthcare costs or losing their job.