Home Appreciation Slows to Lowest Point Since 1999
According to the National Realty News, A BEXT Inc. Publication, Freddie Mac from McLean - Va, announced recently that its quarterly national Conventional Mortgage Home Price Index rose 4.9 percent in the second quarter 2006 on an annualized basis, down from a revised first quarter 2006 annualized rate of 9.1 percent. This same source shows us that thirty year fixed rates rose nearly one-half of a percentage point during the second quarter and rates on 1-year adjustable-rate mortgages went up a third of a percentage point.
What we are seeing from this news is that Housing is the “most interest-rate sensitive sector of the economy.” We see this through both the rising rates during the quarter and from the increases that came before this quarter. The house-price appreciation has slowed down quite suddenly (going from annualized 13% in the fourth quarter of 2005 to less than half of the rate six months later) but this does not mean that there is little strength in the housing market. The housing market is still quite strong. Overall the East South Central states (8.3%) showed the highest level of home-value appreciation in the United States followed by the West South Central states (7.8%).
With this strength come some realizations though – it is a buyer’s market. For example we expect that homes will sit longer on the market even though sellers are more willing to make non-price concessions such as repairs, conveyances and/or contributions to closing costs to attract buyers.
For more informaiton on this subject, click here. For all your real estate needs contact Nolting Real Estate at 636-391-9997 and/or www.noltingrealestate.com.
What we are seeing from this news is that Housing is the “most interest-rate sensitive sector of the economy.” We see this through both the rising rates during the quarter and from the increases that came before this quarter. The house-price appreciation has slowed down quite suddenly (going from annualized 13% in the fourth quarter of 2005 to less than half of the rate six months later) but this does not mean that there is little strength in the housing market. The housing market is still quite strong. Overall the East South Central states (8.3%) showed the highest level of home-value appreciation in the United States followed by the West South Central states (7.8%).
With this strength come some realizations though – it is a buyer’s market. For example we expect that homes will sit longer on the market even though sellers are more willing to make non-price concessions such as repairs, conveyances and/or contributions to closing costs to attract buyers.
For more informaiton on this subject, click here. For all your real estate needs contact Nolting Real Estate at 636-391-9997 and/or www.noltingrealestate.com.
posted by Russell T. Nolting at
12:24 PM
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