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Contrary to popular perception, younger people aren’t more keen on trendy upgrades such as green materials and smart technology when it comes to renovating their homes, a new survey finds.
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The national supply of homes for sale is getting squeezed by the small amount of equity millions of would-be sellers have in their properties and relatively weak output from home builders, according to economists speaking Friday at a real-estate conference in Miami.
Even in places where negative equity has mostly vanished, areas with lower median incomes are doing worse.
Nela Richardson, chief economist for brokerage Redfin Corp., and Selma Hepp, chief economist for Zillow Group’s Trulia real-estate website, both said builders aren’t constructing enough entry-level housing to meet demand. They’re focusing more of their resources instead, the economists said, on building pricey homes for buyers with ample credit.
Pretty much ever since he took the helm in January 2014, Federal Housing Finance Agency Director Melvin Watt has been under pressure from housing advocates and some lawmakers to allow mortgage-finance giants Fannie Mae and Freddie Mac to reduce the mortgage principal on at least some home loans.
One of the home-building industry’s leading chief executives on Wednesday outlined five themes for the housing market’s outlook, focusing on tight inventories, stringent mortgage standards and the preferences of millennials.
The foreclosure crisis, while healing, is still ongoing in many parts of the country where homeowners are predominately black or populated by other minority groups.
The Middle East owners of FRHI Hotels & Resorts are looking to sell the luxury hotel operator, whose high-end brands include Fairmont, Raffles and Swissotel, according to people familiar with the matter.
Home builder KB Home is heralding the return of the first-time buyer. Economic indicators agree that, yes, there is cause for optimism in that regard, but it is heavily muted optimism.
KB Home’s sales to first-time buyers are up, albeit slightly. Specifically, 56% of KB Home’s sales in its quarter ended May 31 were to first-time buyers, up from 50% in its fiscal first quarter and from 54% a year ago.
That’s not a huge increase. But KB Home CEO Jeff Mezger posits that first-timers’ long-anticipated return from their hiatus since the downturn is nigh. He noted that U.S. household formations are on the rise. To wit, Commerce Department data show 116.2 million occupied households in the first quarter, up from 114.7 million a year earlier.
About 700,000 home buyers previously shut out of the mortgage market by events such as a foreclosure or short sale--often called "boomerang" buyers--could qualify for a mortgage again this year, credit bureau TransUnion said on Wednesday.
TransUnion's report--which defined a boomerang buyer as someone who had a foreclosure, short sale, loan modification, 60-day delinquency or other similar event during the crisis--said that over the next three years, more than 1.5 million of the 7 million consumers who had such problems could meet the underwriting guidelines set by government agencies.