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Naea 10-13
The document analyzes data on the U.S. housing market from multiple sources. It shows that homeownership remains an important part of Americans' net worth and financial well-being. Home equity has rebounded from the housing crash, and rising home values are allowing more homeowners to build equity and fueling trade-up demand. Inventory remains low while home prices and pending sales are rising, suggesting the housing recovery is continuing. However, some experts warn price growth cannot last at its current rapid pace and will likely moderate in the coming years. Mortgage rates are also expected to inch up from current historic lows in 2014.
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Naea 10-13
- 2. KCM Divided into ThreeSections
- 4.
- 5. "It seems likeAmericans' love affair with real estate has returned." Greg McBride Bankrate.com's senior financial analyst Bankrate.com 8/2013
- 6. Top 5 ReasonsAmericans Buy a Home A better place to raise their children A place their family can feel safe Ability to have more space Freedom to renovate to their taste Owning is a better investment Fannie Mae
- 7. Owning is still… 35 %Cheaper than renting Homeownership remains cheaper than renting in all of the 100 largest metro areas Trulia 9/2013
- 8. RETURN ON INVESTMENT January2000 – September 2013 MSN Money.com, Case Shiller
- 9. RETURN ON INVESTMENT TheLast Twelve Months MSN Money.com, Case Shiller
- 10. Breakdown of theAmerican Family’s Net Worth $77,300 $47,500 $29,800 Total Wealth Home Equity Other Assets Federal Reserve 2012
- 11. Breakdown of theAmerican Family’s Net Worth Home Equity 38.6% 61.4% Other Assets Federal Reserve 2012
- 12. Homeowners Net Worth… OVER30X greater than renters Federal Reserve 2012
- 13. An American Family’s NetWorth $174,500 $5,100 Homeowner Renter Federal Reserve 2012
- 14. The two bestways to invest money not needed for more than 10 years CASH REAL ESTATE Bankrate.com 8/2013
- 15. Home Prices overthe Next 12 Months Prices Going Up Prices Falling 36% Remain the Same/Not Sure 29% 6% 9% 55% All Americans 65% Upper Middle Class Households
- 16.
- 17. ta·per ˈtāpər/ Verb – todiminish or reduce
- 18. Recent Rate Movement 30Year Fixed Rate Freddie Mac 9/2013
- 19. “If the dataconfirms our basic outlook, then we could move later this year.” Ben Bernanke Chairman of the Fed
- 20. Mortgage Rate Projections Analyst Projected Rate 4Q2014 Fannie Mae 5.3% National Assoc of Realtors 5.5% Freddie Mac 5.2% Mortgage Bankers Assoc 5.1% 9/2013
- 21. Buyer’s Purchasing Power Mortgage InterestRate Payment (P&I) Today $250,000 4.22% 1,225.46 Next Year $250,000 5.3% 1,388.26 Monthly Difference $162.80
- 22. What About theMove-Up Seller?
- 23. “8.3 million homeownersare on the equity fence, and should have at least 20% equity in the next 15 months… If 5% of these 8.3 million homeowners list their homes for sale, that’s an additional 415,000 homes that will be available for sale in the coming months.” Daren Blomquist Vice President of RealtyTrac HousingWire 8/2013
- 24. “In the meantime,higher home prices are bringing out trade-up demand from existing homeowners who are experiencing rising home equity, which supports a down payment on their next bigger house.” Yanling Mayer Director of Research, FNC Inc. HousingWire 8/2013
- 25. Months Inventory of Homesfor Sale 5-6 Months = Normal Market Inventory NAR 9/2013
- 26. Year-over-Year Change inPrices S&P Case Shiller 9/2013
- 27. “This rapid growthis not normal and cannot and should not be expected to last. We are already beginning to see moderation in the monthly pace of home value appreciation, which will be good for the market overall and in the long term.” Stan Humphries Zillow Chief Economist Zillow 9/2013
- 29. 30 Year FixedRate Mortgage History January 2012 – October 2013 Federal Reserve 9/2013
- 30. 115 Pending Home Sales 110 105 100 100= Historically Healthy Level 95 90 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug NAR 9/2013
- 31. Months Inventory ofHomes for Sale 5-6 Months = Normal Market Inventory NAR 9/2013
- 32. Percentage of DistressedProperty Sales 35% 12% NAR 92013
- 33. S&P Case-Shiller HomePrice Indices S&P Case Shiller 9/2013
- 35. How will budgets changein 2014? marketingsherpa 9/2013
- 36.
- 37. Top 5 ReasonsAmericans Buy a Home A better place to raise their children A place their family can feel safe Ability to have more space Freedom to renovate to their taste Owning is a better investment Fannie Mae
- 38. Owning is still… 35 %Cheaper than renting Homeownership remains cheaper than renting in all of the 100 largest metro areas Trulia 9/2013
- 39. Breakdown of theAmerican Family’s Net Worth Federal Reserve 2012
- 40. Breakdown of theAmerican Family’s Net Worth Home Equity 38.6% 61.4% Other Assets Federal Reserve 2012
- 41. Homeowners Net Worth… OVER30X greater than renters Federal Reserve 2012
- 42. An American Family’s NetWorth Federal Reserve 2012
- 43. Resources Slide Slide Title Link 6 Greg McBride BankRate.com http://phx.corporate-ir.net/phoenix.zhtml?c=61502&p=irol-newsArticle&ID=1856909&highlight= 7 Top5 Reasons Americans Buy a Home http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf 8 Owning is still… http://trends.truliablog.com/2013/09/rent-vs-buy-summer-2013/ 9, 10 Return on Investment http://www.spindices.com/index-family/real-estate/sp-case-shiller 11, 12, 13, 14 Breakdown of the American Family’s Net Worth http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf 15, 16 The 2 Best Ways to Invest, Home Prices Over the Next 12 Months http://phx.corporate-ir.net/phoenix.zhtml?c=61502&p=irol-newsArticle&ID=1856909&highlight= 19 Recent Rate Movement http://www.freddiemac.com/pmms 21 Mortgage Rate Projections http://www.mortgagebankers.org/files/Bulletin/InternalResource/84813_.pdf http://www.freddiemac.com/news/finance/docs/Jun_2013_public_outlook.pdf http://www.realtor.org/sites/default/files/reports/2013/embargoes/phs-6-27-hgbfjnv/july-2013-outlook-2 http://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_061313.pdf 24 Daren Blomquist Quote http://www.housingwire.com/articles/26818-move-up-buying-activity-rises-with-home-equity-gains 25 Yanling Mayer Quote http://www.fncrpi.com/press_releases.aspx?pr=69 KEEPINGCURRENTMATTERS.COM
- 44. Resources Slide Slide Title Link 26 Months Inventoryof Homes for Sale http://www.realtor.org 28 Stan Humphries Quote http://www.zillowblog.com/2013-09-22/u-s-home-values-continue-to-surge-in-august-pace-expected 30 30 Year Fixed Rate Mortgage History http://www.freddiemac.com/pmms 31, 32, 33 Pending Home Sales, Months Inventory, Distressed Properties http://www.realtor.org 34 S&P Case-Shiller Home Price Indices https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/19529_cshomepric 36 How will budgets change in 2014? http://www.marketingsherpa.com/article/chart/tactics-budget-2014-investment 37 Jennifer Listens Blog http://jenniferlistens.wordpress.com KEEPINGCURRENTMATTERS.COM
- 46.
Editor's Notes
- #6 http://phx.corporate-ir.net/phoenix.zhtml?c=61502&p=irol-newsArticle&ID=1856909&highlight=
- #7 http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
- #8 http://trends.truliablog.com/2013/09/rent-vs-buy-summer-2013/
- #9 http://www.spindices.com/index-family/real-estate/sp-case-shiller
- #10 http://www.spindices.com/index-family/real-estate/sp-case-shiller
- #11 http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
- #12 http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
- #13 http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
- #14 http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
- #15 http://phx.corporate-ir.net/phoenix.zhtml?c=61502&p=irol-newsArticle&ID=1856909&highlight=
- #16 http://phx.corporate-ir.net/phoenix.zhtml?c=61502&p=irol-newsArticle&ID=1856909&highlight=
- #19 http://www.freddiemac.com/pmms
- #21 http://www.mortgagebankers.org/files/Bulletin/InternalResource/84813_.pdf http://www.freddiemac.com/news/finance/docs/Jun_2013_public_outlook.pdf http://www.realtor.org/sites/default/files/reports/2013/embargoes/phs-6-27-hgbfjnv/july-2013-outlook-2013-6-27.pdf http://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_061313.pdf
- #24 http://www.housingwire.com/articles/26818-move-up-buying-activity-rises-with-home-equity-gains
- #25 http://www.fncrpi.com/press_releases.aspx?pr=69
- #26 http://www.realtor.org/
- #28 http://www.zillowblog.com/2013-09-22/u-s-home-values-continue-to-surge-in-august-pace-expected-to-slow-as-summer-season-ends/
- #30 http://www.freddiemac.com/pmms
- #31 http://www.realtor.org/
- #32 http://www.realtor.org/
- #33 http://www.realtor.org/
- #34 https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/19529_cshomeprice-release-0730.pdf?force_download=true
- #36 http://www.marketingsherpa.com/article/chart/tactics-budget-2014-investment
- #37 http://jenniferlistens.wordpress.com/
- #38 http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
- #39 http://trends.truliablog.com/2013/09/rent-vs-buy-summer-2013/
- #40 http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
- #41 http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
- #42 http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
- #43 http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf