Borrow Smart Repay Smart

Ouch, 95% of Top Real Estate Markets See Declining Values

According to the Case-Shiller Home Price Index, prices in the 20-City Composite fell in 19 of the 20 cities from October to November. Only Phoenix saw an increase, with prices moving up .6% from October to November. Prices were also down 3.7% from November 2010 to November 2011.

The Case-Shiller Price Indices are constructed to accurately track the price path of typical single-family homes located in each metropolitan area provided.

 

 

 

Related articles

• Case-Shiller Home Price Index Falls 3.7% From A Year Ago, Which Was Worse Than Expected (businessinsider.com)
• Home Prices Decline Again (nytimes.com)

Why People Are Buying?

• Why do people buy homes?  It's shifted again from a the primary focus on wealth creation, what we call 'house' considerations, back to more of the more emotional 'home' reasons to buy first, and investment reasons moving to second place.
  
  See below an excerpt from a recent John Burns Consumer Insights, 2012.
   
  

• "The expectation of home appreciation continues to be minimal. Of no surprise, consumers are no longer buying a home for near-term investment purposes. Only 24% expect more than 2% home appreciation annually over the next five years.
• Homeownership begins with personal value as "very important." The highest-ranking reasons (i.e., "very important" reasons) that homeownership is important to consumers today include:
  • "I don't want to rent the rest of my life."
  • "Ownership is what I strive for."
• Second to personal values - but still important - are the financial values. When we combined "very important" with "important," consumers rank "Buying is Affordable" as the #1 reason
• Interestingly, "tax benefits of a mortgage" is at the bottom, below the personal values of homeownership.

Eighty-nine percent think now is a good time to buy a home, with little variation in optimism by region, age or lifestage. The overall average is up 1% from 88% noted in last year's Consumer Insights 2011 survey. "  From John Burns Real Estate Consulting

Hat Tip:  Dan Williams - San Diego Lending

 

Personal Income Up! Disposable Income Up!

According to the Bureau of Economic Analysis, personal income for December increased .5%, up from an increase of .1% in November. Disposable personal income also increased in December, up .4% from November.

Personal income is an individual's total earnings from wages, passive enterprises, and investment interest and dividends. Disposable income is the amount left over after taxes.

 

 

 

New Video Series for Ameriprise

Had a chance to shoot a series of videos based on our What is Enough? series.

Watch Videos: