Housing sentiment flat amid interest rate expectation
Consumer sentiment in the US housing market was flat in October on expectation that the Fed will raise interest rates before Christmas. The Home Purchase Sentiment Index from Fannie Mae showed a slight decrease to 83.2 with the Household Income component falling 4 points and the Good Time to Buy and Good Time to Sell components dipping 2 and 6 points respectively.
Consumers are concerned about job security and slow wage increases as well as interest rates. “Consumers’ net view on whether their household income has improved over the last year is down once again this month. Some consumers may be hesitant or unwilling to commit to buying or selling a home without seeing meaningful improvement in their wages and salaries. Still, the HPSI remains close to its near all-time high level of the past four years and, given the strong October jobs report, suggests that any cooling in near-term activity, if it occurs, should be moderate,” said Doug Duncan, Fannie Mae’s chief economist.
Among the highlights; 38 per cent believe that house prices will increase; 34 per cent believe now is a good time to buy; just 10 per cent believe now is a good time to sell.
NHL star lists Arizona home for $2.4 million
Former NHL star Craig Janney has listed his home in Scottsdale, AZ for $2.4 million. For someone whose lucky number is three it scores well; the 3 story home has 3 bedrooms and sits on a street of just 3 properties. Listing agent Robert Joffe told Realtor.com that the retired hockey star and his wife may be looking to downsize as their daughter is going to college. The couple bought the home in 2013 for $1.62 million.
Home prices in this county predicted to rise 12 per cent
An academic study concludes that home prices in one part of California will rise by 12 per cent over the next two years. California State University Fullerton’s expectations are for Orange County home prices to increase by between 4 and 6 per cent in 2016 and again in the following year. That would take the median cost of a home in the area to as much as $765,000 in 2016 based on the current $722,170 reported by the California Association of Realtors. CSUF’s Anil Puri told the OC Register: “Given the substantial price increases in the last few years, the expected increase in interest rates and moderate to good (but not great) growth in jobs and output, we believe that this is a reasonable expectation.”