Home Prices Show Largest Gain in Years

Published May 28, 2013 Associated Press WASHINGTON – U.S. home prices jumped 10.9 percent in March compared with a year ago, the most since April 2006. A growing number of buyers are bidding on a tight supply of homes, driving prices higher and helping the housing market recover. The Standard & Poor's/Case-Shiller home price index released Tuesday also showed that all 20 cities measured by the report posted annual gains for the third straight month . And prices rose in 15 cities in March from February. That's up from only 11 in the previous month. The monthly figures aren't seasonally adjusted and may reflect the beginning of the spring buying season. Annual prices rose in Phoenix by 22.5 percent, the biggest gain among cities. It was followed by San Francisco (22.2 percent) and Las Vegas (20.6 percent). New York City had the smallest annual increase at 2.6 percent, followed by Cleveland at 4.8 percent. The index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The March figures are the latest available. The U.S. housing market is steadily recovering, buoyed by solid job gains and near-record low mortgage rates. Sales of new homes rose in April to nearly a five-year high. And sales of previously occupied homes ticked up in April to the highest level in three and a half years

Home Prices up 10.5% in March

Julie Schmit, USA TODAY - Home prices in March were 10.5% higher than a year ago -- and a bit more if distressed sales weren't counted, says market researcher CoreLogic. The overall change was the biggest year-over-year jump in seven years and the 13th straight month for home price gains. "The pace of appreciation has been accelerating throughout 2012 and so far in 2013," says Mark Fleming, CoreLogic chief economist. For the month, home prices increased 1.9% in March from February, CoreLogic says. Excluding distressed sales, which are short sales and foreclosures, home prices were up 10.7% year over year. Price gains will slow slightly in April, CoreLogic says. It predicts prices will rise 1.3% month to month and be 9.6% higher than a year ago. But, excluding distressed sales, it says April prices will jump 12% year over year. Different home price indexes frequently come up with different results, but the trend is clear. Last week, the Standard & Poor's Case-Shiller index of 20 cities showed February prices up 9.3% year-over-year. Contributing to higher prices is rising demand among investors and home buyers for a limited supply of homes for sale, CoreLogic says. Fewer foreclosures and other distressed homes in the market can also inflate price changes. Including distressed sales, the five states with the highest home price appreciation in March vs. March 2012 were Nevada, 22%; California, 17%; Arizona, 17%; Idaho, 15%; and Oregon, 14%, CoreLogic says. Prices were lower year over year in only four states: Delaware, down 3.7%; Alabama, down 3.1%; Illinois, which dropped 1.8%; and West Virginia, down 0.3%.

Home Prices up 9.3% in 12 Months

Julie Schmit, USA TODAY U.S. home prices in the USA's 20 biggest cities rose 9.3% in the 12 months ending in February. It was the biggest annual growth rates in almost seven years, a closely watched housing index out Tuesday said. The home price increases were solid across all 20 cities measured by the Standard & Poor's/Case-Shiller index. The 9.3% gain was up from an 8.1% year-over-year gain in January. From January, prices rose 0.3% in February for the 20-city composite of the USA's largest metropolitan housing markets. In eight of the 20 cities, prices dipped slightly from January but all posted increases when compared to their year-ago levels. Price increases are being driven by increased demand, a tightening inventory of homes for sale and fewer foreclosed properties, which tend to sell at a discount to others. "Housing continues to be one of the brighter spots in the economy," said David Blitzer, chairman of the index committee.

WINDJAMMERS OFFER SCENIC TRIPS ALONG COAST

By ROBERT BUKATY Associated Press CAMDEN, Maine -- Capt. Barry King is wrapping up his “welcome aboard” speech in the galley of the schooner Mary Day when he gets around to the question everyone has regarding the trip’s itinerary. “So where are we going?” he asks rhetorically. “We’re going Camden. Should be there in three days.” In other words, there is no itinerary. All we know is that our journey will end right back here where it’s starting, in Camden Harbor. Where we go between now and then will mostly depend on the wind and weather. With no set schedule, no cell phone signal, no noisy motors, what better way to relax than on a Maine windjammer? On this sunny day in early August, the Mary Day sailed out onto picturesque Penobscot Bay. Behind us, Camden’s busy harbor, white church steeples and rounded mountains created a classic Maine backdrop. Ahead of us was Penobscot Bay, with more than 200 spruce-covered islands, making it one of the state’s finest cruising grounds. With more than 5,000 miles of jagged coastline, you’re never far from a quiet harbor or secluded cove to drop anchor and go ashore. “The beauty of it to me is every week we can go somewhere we haven’t been before,” King said. “There are always new places to explore.” Day One started out sunny, but light fog came and went throughout the day. By late afternoon we anchored off an island about 15 miles east of Camden. The all-female crew shuttled passengers ashore in rowboats. After a day of doing not much, other than helping to raise and lower the ship’s massive sails, it was time for an all-you-can-eat lobster bake on the beach. Most folks turned down the captain’s offers after eating two. David Ernest, a college student from Lynnfield, Mass., managed to polish off four. After dinner we returned to the schooner and sailed north, arriving at Buck’s Harbor after dark. The 90-foot Mary Day, which will open its 51st season in late May, is the first schooner in the Maine windjammer fleet to be built specifically to accommodate passengers. Its sleeping cabins are heated and have nine feet of headroom. Most of the Maine’s windjammers were originally designed for carrying cargo such as lumber and granite. The advent of steam-powered ships and later, the railroad, eventually put them out of the shipping business. The Mary Day is one of 10 windjammers that so far have published schedules of passenger cruises along the Maine coast this summer and early fall; all belong to the Maine Windjammer Association. We awoke on Day Two in Bucks Harbor to the smell of blueberry pancakes and fresh coffee coming from the galley. Outside, the early-morning fog was as thick as Maine chowder, so, many of the passengers went ashore to the small town of South Brooksville. The locals were celebrating the 60th anniversary of the children’s book, One Morning in Maine, which was set here by the late author and illustrator Robert McCloskey, a summer resident. By mid-morning the fog had burned off and many of the passengers decided to go swimming, some of the younger passengers climbing out onto the ship’s bowsprit before leaping some 15 feet into the chilly water. Following a macaroni and cheese lunch that one passenger said was reason enough to book a trip again next year, we headed back out on to the bay. More than a dozen harbor porpoises could be seen surfacing in the calm waters. At another point, we sailed past a rocky ledge occupied by dozens of seals. Uninhabited islands were as numerous as buoys marking lobster traps. The relatively small size of the schooner cruise tends to create camaraderie among its passengers. Whether it’s the teamwork from helping to raise the ship’s seven sails, or from sharing breakfast in the cozy main saloon, you can’t help but get to know your shipmates. These friendships and the casual atmosphere are among the reasons Donna Archibald, along with her husband and daughter, were marking their sixth cruise with the fleet. The Archibalds, from Clarks Summit, Pa., have cruised on big ships but prefer the more informal windjammers. On a cruise liner, “you’re not as laid-back as on a schooner. You’re more on the go because you want to get in your day trips to the islands. You don’t really have time to sit back and get to know everyone because they’re all busy doing something else. And there are shows and captain’s dinners, so you have to get dressed up for that,” said Archibald. “Here you kind of roll out of your bunk, spritz your hair, and you’re ready to go.” Finally, on Day Three, the captain’s prediction proved true. The Mary Day and all aboard returned to Camden Harbor, its majestic sails down and ready for the next scenic trip to nowhere along the Maine coast. Read more here: http://www.miamiherald.com/2013/04/13/3338820/windjammers-offer-scenic-trips.html?story_link=email_msg#storylink=cpy

Have We Finally Hit Bottom ?

After 5 years of plunging prices and spiraling foreclosures, maybe -- just maybe -- the bubble has stopped bursting. Home prices are beginning to rebound in many parts of the country, including Maine. We all know that real estate markets are cyclical, but trying to determine the bottom of the cycle (especially after our recent "Great Recession") is alot like waiting to buy stocks at their lowest price -- investors are often left in the lurch, because when the bottom is finally recognized, the elevator is already on its way up. Taking into account current figures for the numbers of listings, foreclosures, sales and prices, we believe the bottom here in Maine occured in late Fall - early Winter of 2012. Remarkably, even though prices are back to their 1988 levels, interest rates seem to be holding at historic lows -- giving some real substance to the old real estate adage that "NOW is always the best time to buy" -- but we believe the elevators for both prices and interest rates are headed up soon. Historic Low Rates... Interest rates for a 30 fixed loan are currently around 3.5%, near the lowest ever recorded in the 40 year history of the Federal Reserve. To give you an idea what this means, at the start of the 1970's they averaged around 7% ($100,000 loan = $665 per month). During the 1990's rates averaged around 9% ($100,000 loan = $805 per month). Today at 3.5%, a $100,000 loan = $450 per month. Elevator Going Up... The chart above estimates the market value of median-priced homes over a 40-year period. The red line represents real house prices, adjusted for inflation. The blue line represent nominal house prices. As you can see, median prices were around $150,000 in the 1970's, hit a high of $300,000 in 2006, and are now around $188,000. The red and blue lines turns upward at the end of 2012 and is expected to continue this trend...

The Great Housing Rebound of 2012

By Christopher Matthews TIME Without a doubt, the U.S. housing market has been the most successful sector of the economy this year, and Wednesday’s Case-Shiller home price index report — which showed a fifth consecutive month of year-over-year increases in home prices nationwide — was a late Christmas present for homeowners across the country. The housing market “bottom” was one of the biggest business stories of 2012. After years of falling home values, the data clearly showed that the bleeding stopped somewhere in the first part of 2012, and that home prices have actually begun to slowly rise since then. In addition, other indicators like housing starts, new home sales, and foreclosure statistics all point toward a healing housing sector. These dynamics have gotten some economists and market analysts excited about the growth prospects for the U.S. economy in 2013. Robert Johnson, director of economic analysis for Morningstar, called housing, “the big change factor in 2013,” and believes that “direct housing investment will be a meaningful contributer” to economic growth in 2013. He also sees industries related to housing — like furniture manufacturing and sales — adding to economic growth in 2013 as the housing market begins to pick up.

A Corner Turned for the Real Estate Market in 2012

After 2011, Real Estate was looking for any signs of improvement in 2012 and it looks like some relief is sight. The relief came in the form of minor jumps in multiple areas in the Real Estate Industry. Forbes reported a drop in Vacancy Rates from 3.0 to 2.1 percent, which is much closer to our average of 1.5 percent. New Construction had its largest gains in the month of October since July of 2008. New Construction units built in 2011 came in around 600,000 and now in 2012 analyst show a jump to 750,000 units built. Forecasters for the economy expect that 2013 New Construction will reach above 1,000,000 units built. Forbes stating that the New Construction is the best news to come out of 2012. However, we need about 1.5 million new units to match population growth. New Construction is important because it creates an average of three jobs per new unit for a year and $90,000 in tax revenue. Some of the factors noted to helping the Real Estate market, our economy that is improving slightly, number of people looking for homes and the inventory dropping.