Norris Bruce
Jan 10, 2019

Buy Or Rent In 2019?

Today’s News Synopsis:

Buy or rent in 2019?  Mortgage rates decreased with  30-year rates now at 4.45% and 15-year rates at 3.89%.  Mortgage credit availability also decreased last month, putting it at 175.0.

In The News:

ATTOM Data Solutions – “Renting a Home More Affordable Than Buying in 59 Percent of U.S. Housing Markets” (1-10-2019)

“ATTOM Data Solutions, curator of the nation’s premier property database, today released its 2019 Rental Affordability Report, which shows that renting a three-bedroom property is more affordable than buying a median-priced home in 442 of 755 U.S. counties analyzed for the report — 59 percent.

Forbes – “More Than 1 Million Americans Will Be Priced Out Of The Housing Market This Year” (1-10-2019)

“If home prices and mortgage rates continue their upward trends, more than 1 million American households could get priced out of the housing market.”

Mortgage Bankers Association “Mortgage Credit Availability Decreased in December” (1-10-2019)

“Mortgage credit availability decreased in December according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from Ellie Mae’s AllRegs® Market Clarity® business information tool.”

Zillow “Interest Rates More Severely Impacting Home Values but Not First-Time Buyers, According to Experts” (1-10-2019)

“Home values have become more sensitive to changing mortgage interest rates as rates climb back toward historic norms. Years of rates near historic lows have kept monthly payments manageable even as home values were rapidly rising.”

Realtor.com – “Disaster Propels California Town to Top of Hottest Markets List for December 2018” (1-10-2019)

“These are turbulent days in the once laid-back town of Chico, CA, which has been overwhelmed by an influx of residents of Paradise, the town just 14 miles down the road that was leveled by the state’s deadliest wildfire in November.”

Freddie Mac – “Drop in Rates Leads to Jump in Mortgage Applications” (1-10-2019)

“Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS®), showing rates dropped significantly across the board.”

Apartment Therapy – “Millennials Are Losing Faith in the American Dream – Here’s Why” (1-10-2019)

“Millennials are losing faith in the American dream—at least according to a new survey from Trulia.”

Slate – “Crowded Cities Short on Housing Are Looking to Turn Water Into Land” (1-10-2019)

“Hong Kong and Copenhagen are building artificial islands for new communities. But too many projects ignore environmental costs.”

 

 

California Real Estate Investor Events

Bruce Norris will be presenting his latest talk 10 Decisions To Make Before The Next Downturn with OCREIA on Thursday, January 17.

Bruce Norris will be presenting his newest market timing report California Real Estate: On Borrowed Time on Saturday, January 26.

Aaron Norris will be presenting Technology Trends and Effects on Real Estate at IVAR on Wednesday, February 6.

 

Looking Back:

Home Equity Hit Record High.  The NAHB reported multifamily housing starts were expected to be in a good position this year and supposed to be 2% lower at 354,000, down from 360,000 the previous year.  Four trends expected to have an impact on the rental market this year were occupancy rates, population shifts, hot market opportunities, and disruption in the technical field.

 

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