For the fourth straight month, home values nationally inched up, this time by 0.8%. The twelve month downward trend appears to have been reversed, based on new home purchases and refinances in Spring and Summer. That's good news as we are still 18% below the April 2007 peak, and right now values are at about where they were in March 2004.
A survey of 111 economists and real estate sources predicts a 1.1% average home value gain in each of the next 3 years - not only an average but a general consensus for slow recovery. Since historically, regional downturns have taken 3-4 years to ascend to prior levels, we are indeed making history in this market.
FHFA published its second quarter report of 308 real estate markets. Of the top 20 performers in Q2, most were smaller metropolitan areas. However, Pittsburgh, Buffalo, Honolulu and San Antonio made the top 20 list. Among the bottom 20 were (still) 13 in AZ, NV and Florida.
Our financial policy makers must find this report very sobering as refinances won't work if value isn't there to support a new loan. Unless, of course, the banks are allowed to split the asset into a secured portion (supported by current home value) and an unsecured asset represented by the amount owed that is in excess of the home value.
Stay tuned....
No comments:
Post a Comment