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Housing market 52% back to normal, pace accelerating

As the housing market marches down the long road to recovery, it’s picking up the pace, with Trulia reporting the market is now 52 percent back to normal, which is still a tough place to be, but the market pain is alleviating.

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Housing slowly, slowly getting back to “normal”

According to the newly released December 2012 Housing Barometer by Trulia, three key housing indicators combined spell a shift in the housing market, a change for the positive. Looking at construction starts, existing home sales, and delinquencies plus foreclosures, Trulia’s Chief Economist, Dr. Jed Kolko says “are now relative to (1) their worst point during the crash and (2) their normal levels.”

The housing recovery is a long, slow march, but the pace is accelerating, the company reports, as in December 2011, the housing market was 27 percent back to normal, and in November, it was 49 percent back to normal, with December 2012 jumping to 52 percent of the pre-recession normal for housing.

The key factors the company says contributed to the surge are construction starts, which jumped in December to a 54-month high, existing home sales which although they fell 1.0 percent for the month, they hit their second highest level since November 2009, and lastly, delinquency and foreclosure rates combined remained at a four year low.

“The recovery, however, is uneven,” Dr. Kolko tells AGBeat. “Construction is above normal levels and there are few foreclosures left to come in ‘healthy’ markets like Houston and San Francisco. At the same time, construction lags far below normal and the foreclosure pipeline remains large in Miami, Chicago, and many other metros.”

Housing recovery is uneven in America

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Last month, when the housing market hit 49 percent back to normal, Dr. Kolko opined, “Does halfway back to normal mean the glass is half-full or half-empty?” Dr. Kolko asks. “The half-empty view is that our three housing measures hit bottom (on average) in 2009, so it’s taken the market a long time–three years–to get to the halfway mark. But the half-full view is that halfway back to normal is better than anyone –myself included–predicted for 2012 at the start of this year.”

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

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2 Comments

2 Comments

  1. Andrew Mooers

    January 23, 2013 at 6:29 pm

    One size fits all is like weather being forecast for the entire country or world. Every market is so different and folks reading this may not find it applies for their area. Local real estate agents, brokers, reporters need to study the local numbers and report how the wind blows in their communities too!

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Austin

Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?

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Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.

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aging housing inventory

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.

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Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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