Homes are getting bigger. Does that mean the housing market is getting stronger? Newly released data from the U.S. Census Bureau shows homes are growing in size. In fact we may see a high water mark in 2012. According to this article, homes are typically built smaller in times of economic downturn and larger during times of prosperity.
A recent report from a Phoenix area title company shows the Phoenix housing market continues to pick up steam. The report released by Grand Canyon Title Agency, Inc. also shows a sharp decline in the number of foreclosures.
The Arizona Housing Department awarded $20 million in tax credits to 18 projects last week and has worked out deals for the projects to be completed in almost half the time. These credits are expected to save each developer approximately $1 million on new Arizona projects and encourage additional housing development over the next decade. Read more…
Between March 2011 and March 2012, U.S. homes sold to foreign buyers rose 24 percent, with 51 percent of the purchases by foreigners occurring in Arizona, California, Florida and Texas. Read more…
Zillow says the housing market has hit bottom in more than half the metro areas on its tracking list, but believes there’s still a way to go for areas that continue to decline.
By purchasing and holding tens of thousands of existing homes, investors have created a demand where little had existed and drastically reduced the inventory of homes for sale, which has helped boost prices over the past six months. The investors’ goal is to buy and rent out a large portfolio of homes and collect monthly lease revenue until home prices increase to significantly higher than what the investors paid, at which time they will sell the homes.
This snatching up of homes by investors makes it nearly impossible for traditional homebuyers in certain neighborhoods to acquire an existing home without paying a premium to an investor, but it also raises serious concerns about what will happen to the housing market when all those investors decide to sell. The concerns about the destabilizing effect investor dominance in the housing market could have on local communities has led to programs designed to help offset this negative effect.
Fannie Mae, the first bank-owned home seller to express concerns about this destabilizing effect has implemented a program called First Look, which prohibits investors from bidding on Fannie Mae-owned homes for the first 15 days after they are listed for sale. Read more…
There are areas in the country where land is actually free…sort of.
Many middle of the road cities are doing better in the down economy. The fact is, they never really boomed so they haven’t really gone bust.