For nearly two years, home values plummeted to pre-2003 levels. Now, housing markets within the country are showing the first signs of stabilizing.
According to the latest results from the Standard & Poor’s Case-Shiller Home Price Indexes, which were released last week, 19 of the 20 metropolitan areas show an improvement in their annual rate of return, and 17 of the 20 metropolitan areas saw price increases in August over July. In September, existing-home sales increased to 5.57 million units, up 9.4% from August, according to the National Association of Realtors.
“We’ve already seen immediate signs of a housing recovery,” says Ross DeVol, the director of regional economics at the Milken Institute, an independent economic think tank that tracks the housing market. “But things were so depressed that coming off a low bottom could take a long time.”
Helping to speed up the housing recovery are national policies including the first-time home buyer’s tax credit and relatively low mortgage rates. Should the tax credit get extended — Senate Democrats reached a compromise last week — it will continue boosting home sales, says Mark Zandi, the chief economist at Moody’s Economy.com. (Zandi says that the full credit will likely be in place through April.) Meanwhile, the Federal Reserve, which has been keeping mortgage rates artificially low, is scheduled to end that effort by March, which could temporarily increase demand for homes between now and then.
Of course, each housing market is regional and varies greatly from the other. Still, there are indicators home owners can rely on to see whether their home values are about to rise. Here are six.
It’s quite simple: Without a job, you can’t buy a home.
And as the unemployment rate rises, fewer individuals are capable of purchasing a home. That decreases the demand for homes, which drives prices down. (Currently, to get approved for a mortgage, you’ll need to show proof of income, says DeVol.)
To find a city’s unemployment rate, and whether it’s rising or falling, visit the Bureau of Labor Statistics' web site. The most recent report, from Oct. 28, breaks down the unemployment rates in each state’s major metropolitan areas and compares those numbers to the previous year.
Also, see if local businesses are hiring and if large corporations are moving into the area. More jobs leads to more employees who end up increasing demand for real estate in the area.
House hunters who want to dig a little deeper can look at the average or median change in income among households in a particular neighborhood.
At a minimum, confirm that incomes are being adjusted for inflation (or ideally rising). Homeowners who have stagnant or decreasing salaries may not have much cash left over after they pay their mortgage; as a result, they might not maintain their homes or stay on top of repairs, which could lower a home’s value and even its neighboring homes’ values, says Zandi.
The Bureau of Economic Analysis (BEA) offers some insight on personal income. Click here and choose “Per capita personal income” and “All Metropolitan Areas” to see how an area’s personal income compares to others and to previous years. A big drawback is that the data released this year ends with 2007 figures. (The BEA will release 2008 data in April 2010.) For state data, click here; the numbers are more current (they run through the second quarter of 2009) and show changes in personal income on a quarterly basis.
Another source is your state’s online employment departments (most states have them). The site should incude average salaries for specific occupations in each county. California residents, for example, can visit this web site and click here to plug in an occupation and county and to find salary information.
SmartMoney.com would like to invite you to visit our Variable Annuities Custom Resource Center. Click here to find out more about this financial product and how it may apply to you.
Trackback URL for this story: http://www.smartmoney.com/tb/Jdmv.2B9E.3D
What is a Trackback?It is a way to tell us that you have published something that references this story.
How do I send a Trackback? If you blog or mention this story on your website, you can use this Trackback URL to notify us about it. Some blogging software programs can help in sending a Trackback to us.
Click here to read more about Trackbacks.
RT @Live_Jones: Six signs your home will increase in value: http://bit.ly/4cOrKD
Six signs your home will increase in value: http://bit.ly/4cOrKD
RT @kevincottrell: 6 Signs Your Home Will Increase in Value - http://ow.ly/yRuC
6 Signs Your House Will Increase In Value.... Portland Oregon Real Estate ..... http://bit.ly/4cOrKD
For nearly two years, home values plummeted to pre-2003 levels. Now, housing markets within the country are showing the first signs of stabilizing.
According to the latest results from the Standard & Poor’s Case-Shiller Home Price Indexes, which were released last week, 19 of the 20 metropolitan areas show an improvement in their annual rate of return, and 17 of the 20 metropolitan areas saw price increases in August over July. In September, existing-home sales increased to 5.57 million units, up 9.4% from August, according to the National Association of Realtors.
“We’ve already seen immediate signs of a housing recovery,” says Ross DeVol, the director of regional economics at the Milken Institute, an independent economic think tank that tracks the housing market. “But things were so depressed that coming off a low bottom could take a long time.”
Helping to speed up the housing recovery are national policies including the first-time home buyer’s tax credit and relatively low mortgage rates. Should the tax credit get extended — Senate Democrats reached a compromise last week — it will continue boosting home sales, says Mark Zandi, the chief economist at Moody’s Economy.com. (Zandi says that the full credit will likely be in place through April.) Meanwhile, the Federal Reserve, which has been keeping mortgage rates artificially low, is scheduled to end that effort by March, which could temporarily increase demand for homes between now and then.
Of course, each housing market is regional and varies greatly from the other. Still, there are indicators home owners can rely on to see whether their home values are about to rise. Here are six.
It’s quite simple: Without a job, you can’t buy a home.
And as the unemployment rate rises, fewer individuals are capable of purchasing a home. That decreases the demand for homes, which drives prices down. (Currently, to get approved for a mortgage, you’ll need to show proof of income, says DeVol.)
To find a city’s unemployment rate, and whether it’s rising or falling, visit the Bureau of Labor Statistics' web site. The most recent report, from Oct. 28, breaks down the unemployment rates in each state’s major metropolitan areas and compares those numbers to the previous year.
Also, see if local businesses are hiring and if large corporations are moving into the area. More jobs leads to more employees who end up increasing demand for real estate in the area.
House hunters who want to dig a little deeper can look at the average or median change in income among households in a particular neighborhood.
At a minimum, confirm that incomes are being adjusted for inflation (or ideally rising). Homeowners who have stagnant or decreasing salaries may not have much cash left over after they pay their mortgage; as a result, they might not maintain their homes or stay on top of repairs, which could lower a home’s value and even its neighboring homes’ values, says Zandi.
The Bureau of Economic Analysis (BEA) offers some insight on personal income. Click here and choose “Per capita personal income” and “All Metropolitan Areas” to see how an area’s personal income compares to others and to previous years. A big drawback is that the data released this year ends with 2007 figures. (The BEA will release 2008 data in April 2010.) For state data, click here; the numbers are more current (they run through the second quarter of 2009) and show changes in personal income on a quarterly basis.
Another source is your state’s online employment departments (most states have them). The site should incude average salaries for specific occupations in each county. California residents, for example, can visit this web site and click here to plug in an occupation and county and to find salary information.
SmartMoney.com would like to invite you to visit our Variable Annuities Custom Resource Center. Click here to find out more about this financial product and how it may apply to you.
Trackback URL for this story: http://www.smartmoney.com/tb/Jdmv.2B9E.3D
What is a Trackback?It is a way to tell us that you have published something that references this story.
How do I send a Trackback? If you blog or mention this story on your website, you can use this Trackback URL to notify us about it. Some blogging software programs can help in sending a Trackback to us.
Click here to read more about Trackbacks.
RT @Live_Jones: Six signs your home will increase in value: http://bit.ly/4cOrKD
Six signs your home will increase in value: http://bit.ly/4cOrKD
RT @kevincottrell: 6 Signs Your Home Will Increase in Value - http://ow.ly/yRuC
6 Signs Your House Will Increase In Value.... Portland Oregon Real Estate ..... http://bit.ly/4cOrKD
For nearly two years, home values plummeted to pre-2003 levels. Now, housing markets within the country are showing the first signs of stabilizing.
According to the latest results from the Standard & Poor’s Case-Shiller Home Price Indexes, which were released last week, 19 of the 20 metropolitan areas show an improvement in their annual rate of return, and 17 of the 20 metropolitan areas saw price increases in August over July. In September, existing-home sales increased to 5.57 million units, up 9.4% from August, according to the National Association of Realtors.
“We’ve already seen immediate signs of a housing recovery,” says Ross DeVol, the director of regional economics at the Milken Institute, an independent economic think tank that tracks the housing market. “But things were so depressed that coming off a low bottom could take a long time.”
Helping to speed up the housing recovery are national policies including the first-time home buyer’s tax credit and relatively low mortgage rates. Should the tax credit get extended — Senate Democrats reached a compromise last week — it will continue boosting home sales, says Mark Zandi, the chief economist at Moody’s Economy.com. (Zandi says that the full credit will likely be in place through April.) Meanwhile, the Federal Reserve, which has been keeping mortgage rates artificially low, is scheduled to end that effort by March, which could temporarily increase demand for homes between now and then.
Of course, each housing market is regional and varies greatly from the other. Still, there are indicators home owners can rely on to see whether their home values are about to rise. Here are six.
Read Full Article »