2019 Homebuyer Report, Latino Homeownership, How to Renovate a Midcentury Modern House, and more…
Case-Shiller report shows lowest level of home price growth since Nov. 2016
The latest Case-Shiller Home Price Index from S&P Dow Jones Indices and CoreLogic, released Tuesday morning, shows that home prices continued rising in December, but that the rate at which they’re increasing is actually slowing down a bit.
According to a review of the data by CoreLogic Deputy Chief Economist Ralph McLaughlin, thanks to a slower December, home price growth is now at its lowest level since November 2016.
“2018 was a turning point for home-price growth in the U.S. housing market. In 2018, we saw monthly over-the-year gains in home prices grow at the slowest rate for a calendar year since 2014,” McLaughlin said.
According to McLaughlin, this year should bring more modest and sustainable levels of price growth in the real estate market.
“With inventory now rising from historic lows and price gains continuing to outpace wage growth, we should see home price appreciation settle toward more reasonable levels throughout 2019 and the remainder of this economic cycle,” McLaughlin said.
More Americans are slashing home prices than in previous winters
“More than any time in the past few years, 2019 is shaping up to be a good year for homebuyers,” Redfin writes. “One way the market has shifted to buyers: More price drops. As of mid-February, more than one in five homes for sale had a price drop—the largest February rate in at least 10 years.”
It took 19 years of salting away money for a down payment, plus help from her familia, for Jenny Soriano to buy her own home in Hillsboro. That enabled the former waitress, an immigrant from Mexico City, to reunite under the same roof with her three adult children, plus their partners and two grandchildren.
“My culture likes all family together,” said Soriano, 48.
More and more Latino families here are achieving the American dream of homeownership. But that’s in sharp contrast to African-American families, who are moving in the opposite direction.
Millennial purchasing power heats up
It’s long been projected that Millennials are destined to dominate the housing market in upcoming years. Now, new data from Realtor.com reveals that it’s finally happening. Millennials are buying houses. Lots of them.
According to Realtor.com, in January 2017, Millennials surpassed Generation X as the group that was responsible for the most new mortgages. Since then, Millennials’ share of the mortgage market has continued to rise. By the end of 2018, Millennials represented 45% of all new mortgages, compared to 36% for Generation X, and 17% for Baby Boomers.
What’s new is that Millennials also finally surpassed older generations in the total dollar amount of those mortgages. According to the data, Millennials now represent the largest dollar volume by age group as well.
Homeownership has traditionally been an important way to build wealth. The Survey of Consumer Finances shows that the average homeowner has household wealth of $231,420, while the average renter has household wealth of $5,200. But these numbers do not sort cause and effect, even though wealthier people buy homes and homeownership builds wealth. Many families lost their homes during the Great Recession, which had negative wealth effects. But numerous studies have shown that, on average, those who bought homes before the crisis built more wealth than similarly situated renters, even taking into account the wealth effects of those who could not sustain homeownership during the crisis.
Homeownership is not the universal panacea, but the financial returns on homeownership have been more beneficial than renting for most homeowners and will likely remain so if current patterns continue.
Oregon lawmakers have all but implemented what’s been called the first statewide rent control policy in the entire nation. Today, the state House of Representatives voted 35 to 25 to approve Senate Bill 608, which would cap annual rent increases at 7 percent plus inflation. Newly constructed residential units would be exempt for 15 years.
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