Post on 02-Aug-2015
NATIONAL SALES
UP 9%
HOUSING MARKET SHOWING STRENGTH
% Change vs Last Year
LOCAL SALES
UP 18%
30 YR INTEREST RATE
DOWN .65 POINTS
NATIONAL MEDIAN PRICES
UP 9%
NATIONAL INVENTORY
DOWN 18%
NATIONAL % OF DISTRESSED SALES
DOWN 11%
LOCAL % OF DISTRESSED SALES
DOWN 3%
LOCAL MEDIAN PRICES
DOWN 1%
LOCAL INVENTORY
DOWN 3%
U.S. HOUSING SUMMARY 2012 (In Millions)
Source: John Burns Real Estate Consulting
133 Housing
Units
120 Households
Occupied
13 Vacant
79 Owned
41 Rented
26 No Mortgage
53 with Mortgage
41 with Equity
12 Negative Equity
2.530-60 days delinquent
4.190+ days or in
foreclosure
5.4 current
Case Shiller Pricing Index
2000 2003 2012
According to the S&P Case Shiller price index, residential real estate values have returned to 2003 first quarter prices. That, in itself, says something. However, when you factor in mortgage rates, the case for buying a home today becomes even more compelling.
2006
Month’s Inventory of Homes for Sale
NAR
Months Supply Pricing
1-2 Double Digit Appreciation
3-4 Single Digit Appreciation
5-6 Balanced
7-8 Single Digit Depreciation
9+ Double Digit DepreciationBU
YE
RS
M
AR
KE
TS
EL
LE
RS
M
AR
KE
T
02468
1012141618
Wilmington AreaNational
Nov Dec Jan Feb Mar Apr May un Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Source 2012 2013 2014Home Price
Expectation Survey -.4 1.4 2.6Urban Land
Institute Flat 2.0 3.5Demand Institute
Study 1.0 1.8 2.5
Projected Annual % Change in Home Prices
Case Shiller Pricing Index
2000 2006 2024
At 3% gain per year, it would take 12 years for current
prices to return to 2006 levels
2012
As long as distressed homes remain a significant portion of homes for sale, prices for non-distressed homes will be under pressure to converge with distressed prices.
Continued Pressure on Prices
Radar Logic 5/31/2012
YearMortgage Payment
(2011 Dollars)
Payment-to-Income Ratio
Payment-to-Rent Ratio
1990 $1,183 .28 1.45
2000 $1,125 .24 1.37
2006 $1,240 .28 1.44
2011 $669 .15 .77
Joint Center For Housing Studies Of Harvard University 6/2012
Cost of Owning a Home (Last 20yrs)