By Dusty Henry
This week’s housing headlines range from urgent issues to, less urgent but equally baffling, “Kardashian issues.” As usual there is so much to cover and so much to keep track of, but here are a few of the weeks highlights. Spoiler alert: mortgages are still having their praise worthy day in the sun.
In a recent Realty Times report, Broderick Perkins explores the spike in affordable, low income housing (up 20% from 2007) and its direct correlation to the rise in homelessness. Perkins also attributes this to a lack of raising federal housing vouchers and lack of project based housing developments.
Real estate searching website Trulia went public today and CBS reports the website say share prices jump up 30%. Shares opened at $22.10. CBS makes many’comparisons to Trulia’s public opening to Facebook’s, citing the modest introduction and lack of hype may benefit the real estate resource in contrast to the overwhelming expectations Facebook found itself faced with. Hopefully Trulia buys the rights to a potential Oscar-worthy movie about their rise before it’s too late (could be a great chance for Nicolas Cage to make his comeback).
In a report from the National Association of Homebuilders (NAHB), builder confidence is on the rise. For the fifth week in a row there has been a rise in confidence for newly built single family homes. Marcie Geffner reports that beside this, Barry Rutenberg (NAHB chairman) and David Crowe (NAHB chief economist) still have some concerns that could cause confidence to fall; these points mostly revolve on the cost to build, shortage of buildable lots, financing, etc.
Calculated Risk reports that not only mortgage rates are in decline (as we’ve mentioned in the past couple housing headline updates) but so are mortgage applications. Contract interest rate for 30 year mortgages have dropped down to a record low of 3.72 percent.
In harmony with the Calculated Risk article, HSH’s Tim Manni reports that along with the drop in rates that home prices and sales are also going up. This is another pleasant sign of a reviving market. HSH attributes this to an increase of volume and a lack of need for aggressive pricing to garner business.
Here’s a bit of light and face-palm-worthy news to end on. Reality TV stars Kim and Kourtney Kardashian, in a daring move of excess, are looking to purchase a $5.8 million waterfront Miami home for their three month jaunt filming a new reality show. Kim, Kourtney; if you’re looking to turn this into an investment property, we may know a few people. Hit us up.