Carpe Diem

Real estate links

1. In the red-hot Washington, D.C. real estate market, a home in the 800 block of Fourth Street NE that was listed for $337,000 received 168 bids and sold for $761,000!  Bidding wars are now common in the DC market as the average marketing time has fallen by 30% over the last year to 53 days, and the median home price has increased 14%.

2. In the Miami area, sales of existing homes and condominiums jumped 23 percent in November from a year earlier, while the median price of an existing condo surged 31.7 percent to $158,000 and the median price for single-family homes rose 15.9 percent to $195,000.

3. The Federal Housing Finance Agency (FHFA) reported this week on its House Price Index (HPI) for October, based on the purchase prices of houses involving conforming, conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac.  According to the HPI, home prices increased in October by 5.6% compared to a year ago, which was the largest annual gain in U.S. home prices since June 2006, more than six years ago.  The year-over-year increase in October was the ninth consecutive month that home prices have increased on an annual basis.  The last time home prices increased for that many consecutive months was back in 2006-2007.

4 thoughts on “Real estate links

  1. Not surprising that Washington DC is the place where bidding doubled the sales price. DC is where the money is but unlike North Dakota Washington Dc produces nothing.

  2. Yet, it looks like the last quarter of the year is weak:

    Small Business Index in U.S. Plunges to Almost 3-Year Low
    Dec 11, 2012

    “The National Federation of Independent Business’s optimism index decreased 5.6 points to 87.5, the lowest reading since March 2010, from 93.1 in October. It was the biggest drop in monthly records going back to 1986 as eight of the measure’s 10 components fell.

    Last month’s drop exceeded the 5.4-point decrease seen in October 2008 in the aftermath of the collapse of Lehman Brothers Holdings Inc., and the 5.2-point fall in September 2001 following the terrorist attacks in the U.S.

    The election “created much uncertainty among business owners as to the future direction of economic policy and the economy,” William Dunkelberg, the group’s chief economist, said in a statement. “Apparently, the level of uncertainty was not resolved in a way that was supportive of many small business owners.” The survey showed superstorm Sandy had little influence on the index.”

  3. Hidden Housing Subsidy:

    LPS just released their “First Look” Mortgage Report for November. 5,350,000 households (total of 30+ day delinquent plus actual foreclosures) are receiving free housing subsidy today. Out of the 5 plus million, only 1.7 million are actually in foreclosure, the rest still have many months of free housing ahead.

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