Glimpses into the housing market
- From RIS Media: Doug Duncan, Senior VP and Chief Economist for Fannie Mae says “August National Housing Survey results support our forecast that 2015 will likely not be a breakout year for housing. To date, this year’s labor market strength has not translated into sufficient income gains to inspire confidence among consumers to purchase a home, even in the current favorable interest rate environment”.
- From Banker & Tradesman: Housing Market Cools, Bifurcates. “In a cooling market – U.S. home values rose more slowly in August than they have in a year – leads to a clear divergence between buyers and sellers markets.” Sellers have the most negotiating power and leverage in greater Boston: Somerville, Cambridge, Arlington, Brookline and Watertown. Here, home values are rising, on the market for a shorter period, and sell closer to or greater than list. Buyers have the most favorable conditions and are less likely to face bidding wars in Marlborough, Plymouth, Lowell, Brockton and Haverhill.
Why does it matter?
- From KCM Blog:
- The average American family has a net worth of $81,200/year
- Of that, 61.4% ($49,856) is in home equity
- A homeowner’s net worth is over 36X that of a renter.
- The average homeowner has a net worth of $194,500 while the average renter has a net worth of $5,400.