Homebuilder stocks soared Monday – edging up as high as 4% in some cases – after the National Association of Home Builders/Wells Fargo Housing Market Index was released, showing homebuilder confidence at a seven-year high.
Standard Pacific Corp. ($9.27 0%) maintained a positive trajectory throughout the day, with the builder’s stock rising as high as 4% in Monday trading and ending the day up by more than 3%.
Fort Worth-based builder DR Horton ($24.26 0%) managed to rise more than 1.5% while other gainers included PulteGroup [stock PHM]; KB Home ($22.02 0%); and Hovnanian ($6.37 0%).
The NAHB/Wells Fargo Index put homebuilder confidence in June at an index score of 52 for single-family homes, an eight-point increase from the last report and well above the 50-mark that generally signifies a market where most builders are confident about sales conditions.
The last time builders reached an index score above 50 was April 2006 right before the housing market crash.
It may seem counterintuitive, but apparently a new study from leading economists David Blanchflower with Dartmouth’s Department of Economics and Andrew Oswald with the University of Warwick claims increases in U.S. homeownership actually lead to higher levels of unemployment.
This suggestion counters the notion that increased homeownership activity is healthy for the economy, so take it with a grain of salt.
The report, which is available here, was covered on CNBC with the news agency saying the era of building an ‘ownership society’ is now blamed for causing less social mobility and employment options.
Blanchflower and Oswald claim upticks in homeownership lead to lower levels of labor mobility, greater commute times and fewer new businesses.
These issues eventually contributed to fewer employment opportunities, they suggest.
Housing prices nationwide are up, but in most areas we haven’t seen scary kinds of increases. It’s a different story here in Southern California, though, where home prices have risen 25 percent in the past year:
“We’re deep into uncharted territory,” DataQuick President John Walsh said, citing “razor-thin” inventory, pent-up demand, low interest rates and all-cash purchases by investors and wealthy individuals. “How this all plays out is educated guesswork at this point.”
….Extremely low inventory and mortgage rates have ignited those bidding wars and helped turn the housing market into an economic bright spot — both in the Southland and nationwide. Investors have also played a major role in the recovery that began last year, buying run-down, lower-cost properties to fix up and rent out.
Is this a bellwether for the future—and for the rest of the country? Maybe not. Richard Green, director of USC’s Lusk Center for Real Estate, thinks prices will ease later in the year for a simple reason: “Ultimately, people don’t have the income,” he says. That’s cheery news, isn’t it?
MT. KISCO, N.Y. – The following is an advisory from Mt. Kisco regarding your tax bill.
ALL 2013 VILLAGE TAX BILLS THAT WERE MAILED OUT ON MAY 31, 2013 HAVE BEEN LOST BY THE WHITE PLAINS REGIONAL PROCESSING CENTER OF THE UNITED STATES POSTAL SERVICE. WE ARE IN THE PROCESS OF SENDING OUT A DUPLICATE BILLING TO ALL PROPERTY OWNERS BY TUESDAY, JUNE 11, 2013.
HOWEVER, NYS REAL PROPERTY TAX LAW WILL NOT ALLOW ME OR ANY OTHER VILLAGE OFFICIAL TO WAIVE ANY PENALTY. ALL VILLAGE TAX BILLS ARE STILL DUE BY JULY 1, 2013, WITHOUT PENALTY.
PLEASE KNOW, AS ALWAYS, YOU ARE WELCOME TO PAY YOUR BILL IN PERSON AND WILL RECEIVE A COPY OF YOUR TAX BILL AT THAT TIME IF THAT IS MORE CONVENIENT FOR YOU.
WE APOLOGIZE FOR ANY INCONVENIENCE THIS HAS CAUSED YOU. PLEASE BE ASSURED THAT THE VILLAGE HAS COMMENCED AN INVESIGATION WITH THE POSTAL SERVICE AND HAVE ALREADY BEEN ASSURED THAT ANY AND ALL ADDITIONAL COSTS WILL BE PAID FOR BY THE U.S. POSTAL SERVICE.
In some markets–many of them in California–the home price rebound has pushed prices above their EHP level, which should be a caution sign for investors seeking to make money in a quick re-sale, according to the latest HomeVestor/Local Market Monitor Best Market Ratings for investors.
Citing new quarterly data compiled by HomeVestors (known as the “We Buy Ugly Houses®” company) and national real estate forecaster, Local Market Monitor, Hicks said that in the top 100 housing markets in the U.S., only one-Providence, Rhode Island–is categorized as “dangerous” for investors. The HomeVestor/Local Market Monitor Best Market Ratings, issued quarterly, concentrate on factors that affect the demand for housing and therefore affect home prices. The potential for price increases is the investment opportunity, the potential for price decreases or stagnation is the investment risk.
At HousingWire’s Real Estate Expo (REX Annual) this week,VaynerMedia Founder and CEO Gary Vaynerchukadvised the audience of real estate professionals to start eyeing up Google Glass. So, as a real estate agent, how should you be utilizing this new technology?
Google Glass allows users who walk down a street wearing the technology to see alerts about nearby houses on the market. The alerts are courtesy of Trulia which this week introduced an app for Google Glass. It is one of only a handful of appsavailable for the Internet-connected glasses, and is an example of how software developers are experimenting with the new device.
Data from the Obama Administration’s May scorecard revealed continued improvement in housing, yet officials warn that a full recovery will still take more time.
“As the May housing scorecard indicates, the Obama Administration’s policies and actions over the last four years to speed housing recovery are continuing to show important signs of progress,” said the U.S. Department of Housing and Urban Development Deputy Assistant Secretary for Economic Affairs Kurt Usowski.
He added, “In the first quarter of 2013, homeowners’ equity grew by more than $815 billion, reaching its highest level since the first quarter of 2008.”
Annual home prices increased to the highest level since the housing bubble burst in mid-2006, with the S&P Case-Shillerhome price index up from 146.6 in March to 148.7 in April. Year-over-year the index is up from 134.1 in April 2012.