A Bright Future For Housing in 2008

50 %
50 %
Information about A Bright Future For Housing in 2008
Real Estate

Published on February 9, 2009

Author: esuoh

Source: slideshare.net

Description

Bring out the Buyers in 2009
"How to Make Money in a BAD Economy" click here! http://bit.ly/clV011

Economic Issues and Residential Real Estate Business Trends Forum NAR Midyear Meetings Washington, D.C. May 17, 2007 Lawrence Yun, Ph.D. Senior Economist NATIONAL ASSOCIATION OF REALTORS® All Real Estate is Local : Local Trends and Local Forecasts

Home Price Distribution (2006) Source: NAR

New York and Los Angeles Source: NAR $ thousand

Atlanta and Columbus Source: NAR $ thousand

Orlando and Providence Source: NAR $ thousand

Local Markets Are All Different Source: NAR $ thousand

Typical U.S. Home Price Source: NAR Ten-fold increase over 38 years for the U.S. What multiple in your local area?

Soft or Hard Landing? Source: NAR, Dow Jones, NASDAQ Annual % Change

NASDAQ Index Source: NASDAQ

Where is the Housing Correction?

U.S. New Single-Family Construction Source: Census 33% Tumble

U.S. Existing-Home Sales Source: Census 11% Retreat In thousand units

Investor (Speculative) Home Sales Source: NAR 29% Fall In thousand units

Vacation Home Sales Source: NAR In thousand units

Investor-Heavy Markets Now Taking a Hit (Existing-Home Sales: 2006 Q4 vs 2005 Q4) Source: NAR

Rapid Change in Prices (1-year Home Price Growth) Source: NAR

Construction Jobs Now Falling Source: NAR

Income of REALTORS ® Source: NAR

Housing’s Contribution to Economy Source: BEA % point contribution to GDP

Sub-Par Economic Growth Source: BEA

Property Taxes, Transfer Taxes, Impact Fees, Recordation Expenses … Local government spending needs = Inflation rate + population growth Inflation rate = about 3% Population growth = -1% to +8% Government Spending Needs On average = 3% + 1% = 4% At most = 3% + 8% = 11% How much has your local government revenue risen?

Local government spending needs =

Inflation rate + population growth

Inflation rate = about 3%

Population growth = -1% to +8%

Government Spending Needs

On average = 3% + 1% = 4%

At most = 3% + 8% = 11%

Fight the Bubble

Something is Out of Whack! Income and Price set to Index of 100 in 1990 Source: NAR

Mortgage Obligation to Income Manageable Source: NAR %

Mortgage Obligation to Income Very High in Some Markets San Diego 45% !!! Source: NAR

Mortgage Obligation to Income Historically High in Some Markets Miami Way Above Historical Local Norm Source: NAR

Mortgage Obligation to Income Manageable in Boston Region Boston Source: NAR

Mortgage Obligation to Income Favorable in Louisville Source: NAR 11% Louisville

Renters Beginning to Get Squeezed – U.S. Source: Torto-Wheaton Research %

Markets Like Phoenix -- Strong in Jobs but Weak in Housing – Feel the Squeeze Source: Torto-Wheaton Research %

Subprime Impact

Mortgage Delinquencies Source: MBA Job Losses Housing Boom Housing Slump

Mortgage Loan Foreclosures: All Action in the Subprime Markets Source: MBA

High Delinquencies Source: MBA Katrina Effect Job Troubles

High Foreclosures Source: MBA

Rising Foreclosures Source: MBA States with Marked Price Deceleration/Declines

Falling Foreclosures Source: MBA Mostly Strong Job Growth and Price Appreciating States

FHA Market Share …Revival Ahead? Source: HMDA ??? Estimate

Jobs Will Buffer the Subprime Fallout

Steady U.S. Job Gains 2 Million in Past 12 months Source: BLS Payroll job changes in thousands

Wage Growth Picking Up % Source: BLS

Job Gains in Boston Region Source: BLS 12-month net payroll job changes in thousands Still down by 100,000 from peak

Job Gains in New Orleans Source: BLS 12-month net payroll job changes in thousands Still down by 100,000 jobs compared to pre-Katrina

Job Gains in Seattle Region Source: BLS 12-month net payroll job changes in thousands

Jobs in Dallas- Ft. Worth Region Source: BLS 12-month net payroll job changes in thousands

Job Gains Tampa-St. Petersburg Region Source: BLS 12-month net payroll job changes in thousands

Job Gains Phoenix Region Source: BLS 12-month net payroll job changes in thousands

Job Gains Washington D.C. Region Source: BLS 12-month net payroll job changes in thousands

Jobs: Detroit Region Source: BLS 12-month net payroll job changes in thousands

Rates: Near 45-Year Lows Source: Freddie Mac 1970s 9% average 1980s 13% average 1990s 8% average 2000s 6.5% average

Stable Mortgage Rates Source: Freddie Mac

Mortgage Rates Retreat But Where are the Buyers? Source: Freddie Mac

Dow Jones Industrial Average Source: NYSE

Record Household Wealth $ trillion Source: Federal Reserve

Expanding World Economy Source: World Bank %

U.S. vs Foreign Currencies Source: Federal Reserve

Housing Comeback Jobs being created Rates at near historic lows Address tax and insurance problems No further artificial swings by speculators Raise buyer confidence Set the record straight: All Real Estate is Local

Jobs being created

Rates at near historic lows

Address tax and insurance problems

No further artificial swings by speculators

Raise buyer confidence

Set the record straight:

All Real Estate is Local

Existing Housing Inventory Source: NAR

New-Home Inventory Source: Census

Mortgage Purchase Applications Source: MBA Index

Price Correction – Ending? Source: NAR Percent change from a year ago

Improving Housing Affordability Source: NAR

Housing Market Tracker Based on Real-Time Data from MLSs Sweeping real-time data daily from 14 metro markets Providing early signals on market direction Soon, will sweep data at more frequent intervals – hourly or at every 15-minutes Will sweep data from more MLSs over time To be on Realtor.org site in July (estimated )

Sweeping real-time data daily from 14 metro markets

Providing early signals on market direction

Soon, will sweep data at more frequent intervals – hourly or at every 15-minutes

Will sweep data from more MLSs over time

To be on Realtor.org site in July (estimated )

Latest Daily Home Sales Tracker: Becoming Less Negative Source: NAR

Latest Daily Home Price Tracker: Also Less Negative Source: NAR

Latest Daily Inventory Tracker: Modest Tightening in Months Supply Source: NAR

Economic Outlook The Fed cuts rate in early 2008 4.8% 2.5% 4.6% 2.1% 2007 5.0% 4.8% 10-year Treasury 2.5% 3.2% CPI Inflation 4.8% 4.6% Unemployment Rate 3.0% 3.3% GDP 2008 2006

National Housing Outlook -1.0% 5.5% 6.4% 1.46 million 0.86 million 6.29 million 2007 1.4% 1.0% Existing-Home Price Growth 5.1% 5.5% 1-Year ARM 6.7% 6.4% 30-Year FRM 1.52 million 1.80 million Housing Starts 0.94 million 1.05 million New Home Sales 6.49 million 6.48 million Existing-Home Sales 2008 2006

Local Forecasts: Who Will be on Top?

Top Five Markets (in random order) Nashville Austin Salt Lake City Denver Raleigh-Durham Watch out for these small markets St. George, UT Myrtle Beach, SC

Nashville

Austin

Salt Lake City

Denver

Raleigh-Durham

Watch out for these small markets

St. George, UT

Myrtle Beach, SC

Top Global Livable Cities (Ranked by Economist Intelligence Unit) Vancouver 26. Cleveland 26. Pittsburgh Honolulu 33. Boston Chicago 33. Miami Seattle Others: Atlanta, D.C., Detroit, Houston

Vancouver

26. Cleveland

26. Pittsburgh

Honolulu

33. Boston

Chicago

33. Miami

Seattle

Others:

Atlanta, D.C., Detroit, Houston

Best Evidence: Household Wealth Accumulation Source: Federal Reserve Median Net Worth $184,400 $4,000

Economic Issues and Residential Real Estate Business Trends Forum NAR Midyear Meetings Washington, D.C. May 17, 2007 Lawrence Yun, Ph.D. Senior Economist NATIONAL ASSOCIATION OF REALTORS® All Real Estate is Local : Local Trends and Local Forecasts

Add a comment

Related presentations

Related pages

Forget Affordability -- Housing's Trends Signal A Bright ...

In 2008 and 2009 the Great Recession and housing bubble ... to produce a bright future in housing. RECOMMENDED BY FORBES. Suddenly Housing ...
Read more

Guidelines for Housing Authorities in the implementation ...

Housing Authorities in the implementation ... sector’s sustainable development into the future. ... (S.I. 534 of 2008) as amended by the Housing ...
Read more

Bright Futures Student Handbook - OSFA Home

Bright Futures . Student Handbook Chapter 2: What You Need to Know Now that You are Eligible. Office of Student Financial Assistance . Florida Department ...
Read more

Clinical Practice

Make the Bright Futures Guidelines, 3rd Edition, the foundation of your pediatric practice. Keep the Bright Futures/American Academy of Pediatrics (AAP ...
Read more

Tracy Chapman - Our Bright Future (2008) - YouTube

Mix - Tracy Chapman - Our Bright Future (2008) YouTube; Tracy Chapman - Wedding song - Duration: 4:26. Romeoegiulietta100 622,978 views. 4:26
Read more

Our Bright Future - Wikipedia, the free encyclopedia

Our Bright Future (2008 ... 65/100: Review scores; Source Rating; Allmusic: Toronto Star: Slant Magazine: Our Bright Future is Tracy Chapman ...
Read more

Bright Futures - American Academy of Pediatrics

... Shaw JS, Duncan P, eds. 2008. Bright Futures: Guidelines for Health Supervision of ... caring for your baby (heat, appliances, housing, knowledge ...
Read more

Florida Bright Futures | UF Office for Student Financial ...

The Florida Bright Futures Scholarship Program, funded by the state of Florida, provides scholarships based on high school academic achievement.
Read more

Bright Futures (2008) - IMDb

... 18 December 2008 ... Search for "Bright Futures" on Amazon.com. Connect with IMDb Getting Started | Contributor Zone » Contribute to This Page ...
Read more

Bright Futures/American Academy of Pediatrics - AAP.org

Bright Futures.The AAP continues to emphasize great importance ofcontinuity care in healthsupervision and the need ... American Academy of Pediatrics; 2008).
Read more