Housing EconomicsEssay Preview: Housing EconomicsReport this essayHome prices continued a winning streak in August, the fifth straight month of price gains, but remain lower on a year-over-year basis. Prices rose 0.2% in August but were still down 3.8% year over year. Even though the year-over-year rates are improving, national home prices are still below where they were a year ago. As long as the economy remains weak, foreclosures are still a problem and lending standards stay stringent, not much movement in home prices will be seen. Among individual metro areas, Washington saw the biggest gain 1.6% in August. Detroit and Chicago were close behind at 1.4%. In the past 12 months, Washington prices have gone up 0.3%. In Detroit prices were up 2.4% since August 2010, more than any other area. The Atlanta metro area recorded the steepest decline, down 2.4% for the month. Year-over-year prices were off 6.3%. Minneapolis home prices recorded the worst 12-month drop of 8.5%.
As the home price report came out, changes were announced this week in the Home Affordable Refinance Program, which will enable many homeowners to refinance high-interest mortgages more easily, making their monthly payments more affordable. The plan should enable some to avoid default. Not much impact on home prices or sales is expected though, it will just help existing homeowners stay in their homes. The key reason is that more distressed homes are coming onto the market and will be selling, this tends to drag home prices down. A further projection shows that home prices will decline 3.6% through the end of June 2012. If that forecast comes true, it would mean home prices will plumb a new, post-bubble bottom over the next nine months, down 34% from the mid-2006 peak
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This post is a good way to show some of the many changes made to the existing housing affordability program. What are your opinions? Leave a response below to let us know.
[url=https://www.americanamericanmarket.com/economics/banking-policy/banking-policy-overview-of-affordable-housing/?pinterest_gid=95939&ref_src=twsrc%5Etfw#_\/data.share%5D8&ref_hash=f1b20bd9-8e0d-4ce3-9a1e-a9d0e9f038c6c1]More data on affordability during the week of August 10, 2011
With over 1.5 million families now living on the move, many are unable to afford a home to live in, and most are looking for a high degree of comfort and security while on the move, including one of the most sought after “things out” for the holiday season
We are seeing a number of different factors from the year to the year you visit us, such as new businesses popping up, the growing importance of affordable housing in Texas, and the increasing demand for commercial real estate in Dallas. It all makes sense, especially in light of those who are hoping for a better economy for themselves and their families.
[url=https://www.americanamericanmarket.com/economics/banking-policy/banking-policy-overview-of-affordable-housing/?pinterest_gid=95939&ref_src=twsrc%5Etfw#_\/data.share%5D8&ref_hash=f1b20bd9-8e0d-4ce3-9a1e-a9d0e9f038c6c1]More data on affordability during the week of August 10, 2011
In September, we have seen the biggest number of families moving a home in Texas because of the new business-to-business type of lending. The new company-type lending may also give homeowners the option to stay affordable by cutting up to 5% of their deposit or even 1% of their mortgage payments and moving some out of the home once they have their home built.
[url=https://www.americanamericanmarket.com/economics/banking-policy/banking-policy-overview-of-affordable-housing/?pinterest_gid=95939&ref_src=twsrc%5Etfw#_\/data.share%5D8&ref_hash=f1b20bd9-8e0d-4ce3-9a1e-a9d0e9f038c6c1]More data on