Home Associates http://homeassociates.org/ Sat, 01 Oct 2022 07:10:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://homeassociates.org/wp-content/uploads/2021/05/home-associates-icon-150x150.png Home Associates http://homeassociates.org/ 32 32 South Florida home prices fall, but key problem remains https://homeassociates.org/south-florida-home-prices-fall-but-key-problem-remains/ Sat, 01 Oct 2022 07:10:00 +0000 https://homeassociates.org/south-florida-home-prices-fall-but-key-problem-remains/

By MICHAEL BUTLER and REBECCA SAN JUAN, Miami Herald

MIAMI (AP) — Home prices fell again last month in Miami-Dade County and fell for the first time in months in neighboring Broward County, an uplifting sign for aspiring home buyers.

Miami-Dade’s median sale price fell to $551,250 for a single-family home in August, from $570,000 the previous month, according to the monthly sales report released Wednesday by the Miami Association of Realtors. Condominium prices also fell to a midpoint of $375,000 from $380,000 in July.

Price declines in Miami-Dade mark the second month in a row, after rising steadily from September to June and hitting all-time highs of $579,000 for a home and $410,000 for a condo.

“Prices never go up forever,” said Ana Bozovic, founder and real estate market analyst at Analytics Miami. “The steady ramp-up we had until mid-2022 was neither normal nor sustainable.”

political cartoons

In August, Broward showed the first signs of a slowdown in the residential real estate market. Although condo prices held steady at a median of $265,000, the median sale price of a home fell to $562,500 from $600,000 in July.

The South Florida housing market has overheated during the two-year pandemic due to a tight supply of available homes and an influx of out-of-state buyers who have decided to call the region their new home. This drove up demand and prices as many of these newcomers outbid local residents and paid cash for homes and condos.

The pandemic-induced dramatic shift in the white-collar workplace from office buildings to homes allowing tech, finance, legal professionals and others to work remotely from anywhere during the pandemic has greatly worsened a housing affordability crisis in South Florida that began long before the coronavirus emerged in March 2020.

Natives and longtime residents of Miami-Dade and Broward waited on the sidelines, betting that runaway real estate prices would eventually subside.

For now, South Florida still has few choices for people determined to buy a home. Miami-Dade has available inventory of 3.3 months of homes and 3.4 months of condos. Broward has 2.5 months of homes and 2.1 months of condos. It’s far from a balanced market, which typically has five to seven months of supply of homes to buy.

The total number of home sales transactions increased from July to August across the region. Miami-Dade had 2,505 sales, down from 2,375, while Broward had 2,700 transactions, up from July’s 2,575. In line with a longer-term trend, nearly half of buyers last month paid cash for homes — likely to avoid rising mortgage interest rates, experts say — in Miami-Dade and Miami. Broward.

Ken H. Johnson, a finance professor at Florida Atlantic University and an expert on the real estate market, said interest rates will continue to rise for the rest of the year.

On Wednesday, the Federal Reserve announced its fifth increase to its benchmark interest rate in 2022, the third increase by three-quarters of 1% – aggressive moves to try to rein in persistent consumer price inflation. Fed rate hikes pushed conventional 30-year mortgages to an average of 6%, double the mark from a year ago and the highest level since 2008.

Johnson thinks part of the Fed’s inflation-fighting strategy to keep raising interest rates is to limit consumers’ purchasing power. Part of the Fed’s thinking, he said, is that as mortgage rates rise, fewer people will borrow against their home equity through home equity lines of credit.

“The Fed is aware that the availability of credit is determined by the size of stocks in our country and the Fed is concerned about building larger lines of credit,” Johnson said. “Many of us are concerned that this will create another form of money supply over which the Fed has no control.”

Meanwhile, Joey Francilus, a North Miami native and digital strategist, has bought a home but is reassessing the schedule due to interest rate jumps and prolonged consumer price increases. The 32-year-old wants to buy a three-bedroom, two-bathroom home in North Miami by the end of 2023, similar to the house he grew up in. His mother, Marie Severe Jean-François, emigrated from Haiti to New York in 1979 and soon after moved to Miami. She bought her house in 1998 for $88,000. Today it is valued at $400,000.

Francilus fears that newcomers to South Florida with deep pockets will continue to evict longtime residents like himself.

“We can have growth,” he said, of the housing market. “But if we value the very people who make this city what it is, then what is the cost? We lose our essence if the people who make this city can’t afford to live here.

Professor Vanessa Perry of the George Washington University School of Business studies the homeownership gap and thinks aspiring first-time homebuyers like Francilus are more hampered than others by higher mortgage rates.

“That’s a particular constraint we’re facing now, because house prices are so high and we’re seeing such huge rates of house price appreciation during the pandemic,” Perry said. “It makes it even harder for the first-time home buyer to get into the market, because they need a mortgage to buy a house and it’s even harder to qualify for that mortgage than it is. one year ago.”

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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The Treasury guarantees $355 million in bond financing for https://homeassociates.org/the-treasury-guarantees-355-million-in-bond-financing-for/ Fri, 30 Sep 2022 22:13:40 +0000 https://homeassociates.org/the-treasury-guarantees-355-million-in-bond-financing-for/

WASHINGTON, Sept. 30, 2022 (GLOBE NEWSWIRE) — The U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund) today announced that the Treasury has agreed to issue three guarantees totaling $355 million of dollars under the Community Development Financial Institutions (CDFI) Obligation Guarantee Program. The guarantees will be issued in the name of five eligible CDFIs under the program fiscal year 2022. A total of more than $2.167 billion has been guaranteed since the inception of the CDFI Bond Guarantee Program, which provides long-term fixed rate capital for projects in low-income urban, rural and Indigenous communities.

“Today’s announcement marks a banner year for the CDFI Bond Guarantee Program,” said Jodie Harris, CDFI Fund Manager. “The $355 million bond issue announced today is the largest in the program’s history. Today is also a good time to reflect on the significant impact this important long-term capital is having on low-income communities across our country – of the more than $2.167 billion approved, more than $1.4 billion dollars in cumulative investments have already been disbursed by this program since its launch in 2013.”

Fiscal 2022 program participants include:

Community Reinvestment Fund, United States will issue a $100 million bond in the name of the Low Income Investment Fund (LIIF). LIIF plans to use the proceeds of the bond to fund charter schools, rental housing, child care centers and other qualifying uses. This is the third bond issue in LIIF’s CDFI bond guarantee program, having also been part of bond guarantees in 2014 and 2016.

InBank, a new qualified issuer, will issue a $125 million bond in the name of Capital Plus Financial, to provide single-family mortgage financing and property rehabilitation to low-income Hispanic communities in the state of Texas through the Class of CDFI assets to Financing Entity.

Opportunity Finance Network will issue $130 million in bonds on behalf of the following three eligible CDFIs:

  • Community Ventures (CVEN) will receive a $10 million bond loan to fund small businesses and single-family mortgages, the latter through the CDFI to Financing Entity asset class. CVEN was a previous beneficiary of a bond guarantee in 2015.
  • The Charter School Development Corporation will receive a $70 million bond loan to fund charter schools.
  • The Greater Minnesota Housing Fund (GMHF) will also receive a $50 million bond loan to finance rental housing in the state of Minnesota. GMHF received two prior bond guarantees in 2017 and 2019.

Established by the Small Business Jobs Act of 2010, the CDFI Bond Guarantee Program addresses a critical market need: low-cost capital to spur economic growth and kick-start community revitalization. Under this program, qualified issuers (CDFIs or their delegates) apply to the CDFI Fund for authorization to issue covered bonds with a total value of at least $100 million. Bonds provide CDFIs with access to significant long-term, fixed-rate capital to revive the economies of struggling communities.

The program enables CDFIs to execute large-scale projects including the development of commercial real estate, housing units, charter schools, daycare or health centers and rural infrastructure projects, among other asset classes. As of August 31, 2022, more than $1.4 billion in bond proceeds had been disbursed across 32 states and the District of Columbia.

About the CDFI Fund

Since its inception in 1994, the CDFI Fund has awarded more than $5.5 billion to CDFIs, community development organizations and financial institutions through: the Bank Enterprise Award program; the Capital Magnet fund; the CDFI rapid response program; the Community Development Financial Institutions Program, including the Healthy Foods Financing Initiative; the Economic Mobility Corps; the financial education and counseling pilot program; the CDFI Native American Assistance Program; and the Small Loans Program. In addition, the CDFI Fund allocated $66 billion in tax credit allocation authority to community development entities through the New Markets Tax Credit program, and closed covered bonds for more $2.1 billion through the CDFI bond guarantee program.

To learn more about the CDFI Fund and its programs, please visit the CDFI Fund website at www.cdfifund.gov.

Contact:
Bill Luecht
Community Development Financial Institutions Fund, United States Department of Treasury
luechtw@cdfi.treas.gov
202-653-0322

]]> CoreLogic: Hurricane Ian Wind and Storm Surge Estimated Losses Between $28 Billion and $47 Billion in Florida’s Costliest Storm Since Hurricane Andrew https://homeassociates.org/corelogic-hurricane-ian-wind-and-storm-surge-estimated-losses-between-28-billion-and-47-billion-in-floridas-costliest-storm-since-hurricane-andrew/ Fri, 30 Sep 2022 00:57:45 +0000 https://homeassociates.org/corelogic-hurricane-ian-wind-and-storm-surge-estimated-losses-between-28-billion-and-47-billion-in-floridas-costliest-storm-since-hurricane-andrew/

IRVINE, Calif.–(BUSINESS WIRE)–September 29, 2022–

CoreLogic®, a leading global provider of property information, analytics and data-driven solutions, today announced residential and commercial wind and storm surge loss estimates from Hurricane Ian. According to this new data analysis, wind losses for residential and commercial properties in Florida are expected to be between $22 billion and $32 billion. Insured storm surge losses in Florida are expected to be between an additional $6 billion and $15 billion.

This press release is multimedia. View the full press release here: https://www.businesswire.com/news/home/20220929005990/en/

Table 1 shows estimates of commercial and residential insured property losses by state. (Graphic: CoreLogic)

“This is the costliest storm in Florida since Hurricane Andrew made landfall in 1992 and a record number of homes and properties have been lost due to Hurricane Ian’s intense and destructive characteristics,” said Tom Larsen, Associate Vice President, Risk and Risk Management, CoreLogic. “Hurricane Ian will forever change the real estate industry and the city’s infrastructure. Insurers will go bankrupt, homeowners will be forced into delinquency, and insurance will become less accessible in places like Florida.

If the forecast holds, CoreLogic expects Hurricane Ian to continue to devastate Florida and potentially South Carolina and Georgia. Residents will experience standing water and sewer backups for days, slowing immediate recovery. Significant damage to infrastructure will also hamper the responsiveness of local governments.

The implications of Hurricane Ian’s recovery

With inflation at its highest level in 40 years, interest rates approaching 7% and demand for labor and materials still high, CoreLogic expects the recovery to be slow and difficult. Although recent legislation such as the Inflation Reduction Act aims to improve infrastructure and resilience, the real estate sector is poised to evolve. “We are at a crossroads with Hurricane Ian in terms of adapting to today’s disaster risk environment,” Larsen said. “Infrastructure and building codes will evolve so that we can be more resilient in the face of what are bound to be more historic storms in the near future. We cannot just rebuild; we must restore for resilience.

Florida’s housing market was healthier than average before Hurricane Ian, according to CoreLogic economists. “In the second quarter of 2022, Florida recorded one of the strongest real estate appreciations in the United States, averaging $100,000 in equity per owner,” said Selma Hepp, acting manager. from the Office of the Chief Economist, CoreLogic. “Florida also had the highest home price gains in July. Equity gains and record low loan-to-value ratios will provide many Florida homeowners with a financial buffer should economic conditions deteriorate, as is usually the case following natural disasters.

Learn more about Hurricane Ian loss estimates

The post-landfall estimates above have been updated based on the National Hurricane Center (NHC) storm advisory for September 29 at 8:00 a.m. This analysis includes insured losses resulting from damage to residences and commercial properties, including contents and business interruption, and does not include broader economic losses due to the storm. Ian was downgraded to a tropical storm as it crossed the Florida peninsula. However, flash flooding will be the main concern until the storm re-forms over the ocean with the potential to make landfall as a hurricane in South Carolina. As such, CoreLogic will produce flood loss estimates next week.

Visit CoreLogic’s natural hazard information center, Hazard HQ™, at www.hazardhq.com to access the most recent storm data from Hurricane Ian and view reports from previous storms.

Methodology

CoreLogic offers high-resolution location information solutions with a view of hazards and vulnerabilities aligned with the latest scientific advances for more realistic risk differentiation. High-resolution storm surge modeling using a 10m digital elevation model (DEM) and PxPoint™ parcel geocoding accuracy facilitate this realistic view of risk. Single-family residential structures under four stories, including mobile homes, duplexes, manufactured homes, and cabins (among other non-traditional home types) are included in this analysis. Multi-family residences are also included. This does not mean that there will not be damage to other types of structures, as there may be damage associated with wind or debris not listed in this release.

Source: CoreLogic

The data provided is intended for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be resold, republished, or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without CoreLogic’s prior written permission. All CoreLogic data used for publication or dissemination, in whole or in part, must be sourced from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation should directly accompany the first data reference. If the data is illustrated by maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or on the website. For questions, analysis, or data interpretation, contact newsmedia@corelogic.com or Caitlin New at corelogic@ink-co.com. Data provided may not be changed without prior written permission from CoreLogic. Do not use the data illegally. This data is compiled from public records, contributory databases and proprietary analysis, and its accuracy depends on these sources.

About CoreLogic

CoreLogic is a leading global provider of property information, analytics, and data-driven solutions. The company’s combined data from public, contributory and proprietary sources includes more than 4.5 billion records spanning over 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, location, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets and the public sector. CoreLogic delivers value to customers through unique data, analytics, workflow technology, advisory and managed services. Customers rely on CoreLogic to identify and manage growth opportunities, improve performance and mitigate risk. Based in Irvine, California, CoreLogic operates in North America, Western Europe and Asia-Pacific. For more information, please visit www.corelogic.com.

CORELOGIC, the CoreLogic logo, Hazard HQ and PxPoint are trademarks of CoreLogic, Inc. and/or its affiliates.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220929005990/en/

CONTACT: Robin Wachner

Business communication

newsmedia@corelogic.comCaitlin New

Ink communication

512-906-9103

corelogic@ink-co.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA FLORIDA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES RESIDENTIAL BUILDING AND REAL ESTATE COMMERCIAL BUILDING AND REAL ESTATE INSURANCE CONSTRUCTION AND PROPERTY FINANCE

SOURCE: CoreLogic, Inc.

Copyright BusinessWire 2022.

PUBLISHED: 09/29/2022 20:42 / DISK: 09/29/2022 20:42

http://www.businesswire.com/news/home/20220929005990/en

Copyright BusinessWire 2022.

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Mortgage holders face ‘ticking time bomb’ as interest rates rise https://homeassociates.org/mortgage-holders-face-ticking-time-bomb-as-interest-rates-rise/ Thu, 29 Sep 2022 11:17:35 +0000 https://homeassociates.org/mortgage-holders-face-ticking-time-bomb-as-interest-rates-rise/

ghello.

The pound fell again today after a sharp rebound against the dollar on Wednesday.

The pound jumped the most since mid-June on Wednesday, dragging the euro with it, after the Bank of England carried out the first of its emergency bond buybacks, worth more than £200,000. a billion pounds sterling.

This morning, the British pound was down 0.9pc at $1.0789 mid-session in Asia, losing some of the previous day’s rally. The euro also weakened to $0.969, following Wednesday’s 1.5% rise, the biggest since early March.

The pound fell to a record low of $1.0327 on Friday as investors delivered a scathing verdict on Kwasi Kwarteng’s plan for record tax cuts funded by a massive increase in borrowing.

The euro had plunged to a new two-decade low at $0.9528.

5 things to start your day

1) Pension fund crisis forces bank to bail out £65bn Bank warned of ‘significant risk to UK financial stability’ and stepped in to buy long-term gilts

2) Yellen reassures health of global economy after IMF stoked fears of UK contagion The US Treasury Secretary insisted financial markets are “working well” as stocks in Europe and on Wall Street rebounded.

3) UK trade and travel risk ‘rapid’ decline if Brussels refuses to ease impending border controls Biometric checks are due to be introduced next May, replacing the “wet marking” of passports.

4) EDF plans to keep UK nuclear power stations open longer to boost energy supply The French public company said it would review its current plans to close Hartlepool and Heysham 1 in March 2024.

4) Russia forced to use its own aircraft technology to supply its fleets The country is trying to revive its crash-prone Cold War-era aviation industry after being hit by Western sanctions

What happened overnight

Asian stock markets rose on Thursday after the Bank of England launched an emergency bond-buying program. The move supported the pound and offered some comfort to a turbulent mood in the markets, but by mid-morning in Tokyo the pound was already struggling to find support and was down 0.6pc at 1.0818 $. MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 1.5% and is eyeing its best session in a month. The Japanese Nikkei rose 0.9pc, while the Hang Seng rose 2pc.

coming today

  • Economy: Consumer Credit (UK), Mortgage Approvals (UK), Gross Domestic Product (US), Initial Unemployment Claims (US), Consumer Confidence (EU), Indicator economic climate (EU)
  • Company : Mcbride (final results), Next, Synairgen, Novacyt (interims), Mitchells & Butlers (trade update)
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Kittley Coaches Tree at Texas Tech Adds Football to Track https://homeassociates.org/kittley-coaches-tree-at-texas-tech-adds-football-to-track/ Wed, 28 Sep 2022 22:28:10 +0000 https://homeassociates.org/kittley-coaches-tree-at-texas-tech-adds-football-to-track/

LUBBOCK, Texas (AP) — Texas Tech offensive coordinator Zach Kittley remembers all about telling his father his future was going to be in football.

Wes Kittley was okay with that, even though his life’s work was on the track and he coached the first NCAA tag team championship in men’s track and field with the Red Raiders.

Dad is delighted now because he shares a dining room in the sports complex with his youngest son and can attend football practice whenever he wants.

“It’s just a dream come true for me, his mom and his brothers,” Wes Kittley said. “Zach is beloved in this town. We kind of say this in the Kittley family: “We will die for you if we know you are for us. »

There has been Kittley training at Texas Tech since 1999, when 8-year-old Zach watched Kliff Kingsbury play quarterback for the Red Raiders.

When Kingsbury was hired as a coach ten years ago, the young Kittley recalls where he was when he heard the news – and what this Texas Tech student said to his father, sitting next to him in a restaurant .

“I said to him, ‘This is what I want to do. I want to go work for this guy and learn from him,” said Zach Kittley, who was helping his dad with the track program at the time. “He said, ‘It’s your deal and you have to get close to it and attack it.'”

Wes Kittley gave his son the phone number of Texas Tech assistant Sonny Cumbie, another former Red Raiders QB. But that’s all. Dad wasn’t going to ask favors for his son.

Before long, Zach Kittley was the graduate assistant whose only job was to help Kingsbury. Dad says his son arrived at the office before Kingsbury, a famous early riser who was usually there at 5:30 a.m.

“And they noticed it,” Wes Kittley said. “And Kingsbury just said, ‘Wes, this kid, I have to have it for myself. I knew he would learn a lot, but I hadn’t realized he would learn so quickly.

Zach Kittley had a full-time offer in an off-field role with the Red Raiders when his allotted time as a graduate assistant expired. Instead, he went to Houston Baptist, a lower division, to call plays.

The highlight was a 35-33 loss to his alma mater in Lubbock with the Huskies as huge underdogs, when Bailey Zappe threw for a school-record 567 yards with four touchdowns.

“Part of the take on this job for me was, ‘Hey, let’s call the games at 26 and make a lot of mistakes while I’m really young,'” Zach Kittley said. “I still don’t know what it is now, but there aren’t many Division I offensive coordinators at 26.”

The chance to return to his alma mater came at age 30, after three years at Houston Baptist and one at Western Kentucky. Cumbie had agreed to be McGuire’s first offensive coordinator, but later took the head coaching job at Louisiana Tech.

McGuire’s next move was obvious, given that he had been suggesting to Zach Kittley for a year that he might want to hire him if he became head coach. Then there was the introductory press conference.

“I didn’t really have a relationship with Joey,” Wes Kittley said. “I never did until the press conference and then I just walked up to him, never met him, I said, ‘Hi, I’m Coach Kittley.’ He said: ‘Your son is a rock star.’

The legend will grow with a few more Saturdays like this, when McGuire had enough confidence in Kittley’s offense to go for it four times, converting six in a 37-34 overtime win over rival Texas.

“Where I fell in love with him, we talked a lot the last two years, but in the interview he said, ‘Coach, I’m going to find our top 11 players, I’m going to have them on the pitch, and we going to score a lot of points,” McGuire said.

Zach Kittley said Kingsbury was the first Texas Tech player he remembers watching after his father was hired to coach the track. He wanted to work for him because Kingsbury had just been at Texas A&M with 2012 Heisman Trophy winner Johnny Manziel.

It didn’t take long for Kingsbury to start pairing their Texas Tech quarterbacks with young Kittley.

“He’s the first one I’ve really let take over the quarterback room,” said Kingsbury, the Arizona Cardinals coach who was hired by the NFL club shortly. after being fired from Texas Tech in 2018. “He was 22 or 23, and we had Patrick Mahomes and all these guys, but he was so good at his job.

Leaving Lubbock has never been easy for Zach Kittley. He was miserable trying to start a college basketball career at Abilene Christian, where his father ran and coached for 15 years. It didn’t last long.

“You’d think I sent him to New York,” said Wes Kittley, who led the Texas Tech men to the 2019 NCAA track title. “He just wanted to get back to Lubbock.”

When he took over as Houston Baptist, Zach Kittley said he was choking back tears as he left his office for the last time.

He was at his parents when McGuire called to offer Zach Kittley the job that brought him home. Shortly after, Zach Kittley took a Sharpie on a Texas Tech football helmet for his 63-year-old father, who has a picture of it on his phone.

“What a blessing to be able to work together again,” the son wrote. “Let’s make a lot of memories.”

On game days in Lubbock, some of those memories come from the athletic coach’s office in the southwest corner of Jones Stadium. Maybe it should be called the Kittley Family Suite, since her mother, Linda, is in there.

“Just being able to see him more and my mom more…is very special,” Zach Kittley said. “And just being able to say there are two Kittley coaches here at Texas Tech is a really good deal.”

Doesn’t even need to be tracked everything.

___

AP Sports Writer David Brandt contributed.

___

More AP college football: https://apnews.com/hub/college-football and https://twitter.com/ap_top25. Sign up for the AP college football newsletter: https://tinyurl.com/mrxhe6f2

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Nasdaq futures slide but S&P 500, Dow futures hold up ahead of market open https://homeassociates.org/nasdaq-futures-slide-but-sp-500-dow-futures-hold-up-ahead-of-market-open/ Wed, 28 Sep 2022 11:11:09 +0000 https://homeassociates.org/nasdaq-futures-slide-but-sp-500-dow-futures-hold-up-ahead-of-market-open/

US stocks may find it difficult to orient themselves on Wednesday after the market struggled en route to a mixed close in the previous session. Volatility could be on the agenda as another batch of Fed speeches are in the works.

On Tuesday, major averages opened significantly higher and moved sideways in early trading, encouraged by dovish comments from the Chicago Fed Chairman Charles Evans.

Along with the decline, the S&P 500 also breached the mid-June lows on an intraday basis and closed at its lowest level since Nov. 30, 2020.







Performance of US indices on Tuesday
Index Performance (+/-) Assess
Nasdaq Compound +0.21% 10,829.50
S&P 500 Index -1.03% 3,647.29
Dow Industrials -0.43% 29,134.99

Here is an overview of index futures trading:








Performance of US futures on Wednesday during the pre-market session
Index Performance (+/-)
Nasdaq 100 Futures Contracts -0.38%
S&P 500 Futures Contracts +0.02%
Dow Futures Contracts +0.08%
R2K Futures +0.01%

In pre-market exchanges on Wednesday, the SPDR S&P 500 ETF TrustTO SPY rose 0.13% to $359.05, while Invesco QQQ Trust QQQ was down 0.23% at $273.86, according to Benzinga Pro data.

“The Fed’s message to ‘keep going,’ straight out of the lexicon of inflation-killer Paul Volcker, suggests that market participants are going to be much more cautious before embracing a rebound and moving to the next level,” said Quincy Krosby, Chief Global Strategist at LPL Financial.

On the economics, traders can digest mortgage application volume data from the Mortgage Bankers Association for the week ended Sept. 23.

The focus is also likely to be on the National Association of Realtors’ pending home sales index for August, which is due out at 10 a.m. EDT. In July, the index, a leading indicator of housing activity, fell 1% month-on-month.

Atlanta Fed President Raphael Bostic is expected to participate in a moderated conversation on “Leadership in Banking” prior to “Banking and the Economy: A Forum for Minorities in Banking,” in Atlanta, Georgia. The event is scheduled for 9:25 a.m. EDT.

Chairman of the Federal Reserve Jerome Powell will give, via pre-recorded video, welcoming remarks prior to the 2022 Community Banking Research Conference hosted by the St. Louis Fed at 10:15 a.m. ET. Federal Reserve Board Governor Michelle Bowman is scheduled to speak on “The New Landscape of Banking Competition” at the same conference at 11 a.m. ET.

Richmond Fed President Thomas Barkins is scheduled to speak at the New Bern Chamber of Commerce at 11:30 a.m. ET.

At 2 p.m. ET, Evans is expected to take part in a moderated Q&A on current economic conditions or monetary policy hosted by the London School of Economics.

See: S&P 500 breaks past June low: Why pre-market readiness is watching this bond ETF

Targeted actions:

  • Apple Inc. AAPL is down about 4% after a Bloomberg report suggested the company was slowing the ramp-up of iPhone 14 production due to slower-than-expected demand.
  • Biogene, Inc. IBIB and Eisai Co.Ltd. ESALY could be in the spotlight after their second-generation Alzheimer’s treatment candidate passes a late-stage study. Biogen grew approximately 40% in pre-commercialization business. Eli Lilly & Company THERE ISwhich has a competing drug in development, also moves in sympathy.
  • Paychex, Inc. PAYX and Cintas Corp. ETG are among the companies that must publish their earnings before the market opens.

Commodities, global stock markets:

Crude oil, which rallied on Tuesday due to supply issues triggered by Hurricane Ian, is trading slightly lower. On Tuesday, Goldman Sachs lowered its oil price forecast for 2023, citing a weak demand outlook.

Major Asian markets fell on Wednesday, with Hong Kong’s Hang Seng falling more than 3%. The Taiwanese, South Korean and Chinese markets also recorded notable losses. Recession fears dominated, forcing investors to take cover under the safe-haven dollar. The Chinese yuan fell to its lowest level against the dollar since 2011, when data was first made available.

European stocks are trading moderately lower late in the morning, with the UK policy fiasco adding to the negativity.

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Early U.S. figures show real home prices rise more than 50% in one year https://homeassociates.org/early-u-s-figures-show-real-home-prices-rise-more-than-50-in-one-year/ Tue, 27 Sep 2022 14:27:00 +0000 https://homeassociates.org/early-u-s-figures-show-real-home-prices-rise-more-than-50-in-one-year/

First American Financial Corp. released the First American Real House Price Index (RHPI) for July 2022, which shows that real house prices rose 53.8% year-over-year.

“Housing affordability continued its rapid annual decline in July 2022, as nominal house prices rose 16.7% year-over-year and the 30-year fixed mortgage rate increased by 2.5 percentage points from a year ago. The RHPI reflects the decline in affordability, as it jumped nearly 54% on an annual basis,” says Mark Fleming, chief economist at First American. “For homebuyers, there are few options to mitigate the loss of affordability caused by a higher mortgage rate and rising prices.”

Real house prices decreased by 0.9% between June 2022 and July 2022, but increased by 53.8% between July 2021 and July 2022. They are 28.7% more expensive than in January 2000.

“One way to compensate for declining affordability is to increase household income by an equivalent, if not greater, amount,” Fleming comments. “Another option is to choose an adjustable rate mortgage (ARM), which usually has a lower rate than a 30-year fixed rate mortgage. Even though household income and higher MRAs help increase consumer purchasing power, they are not enough to offset the loss in affordability due to higher rates and rapidly rising nominal prices in July.

Consumer purchasing power, i.e. the amount one can buy based on changes in income and interest rates, increased by 1.7% between June 2022 and July 2022, and decreased 24.1% year-over-year. Median household income has increased by 3% since July 2021 and by 76% since January 2000.

“As affordability declines, potential buyers pull out of the market, causing annual house price appreciation to moderate. Annual house price growth peaked in March at nearly 21%, but has slowed since to a still high 16.7% in July,” Fleming continued. “As the housing downturn continues, the pace of home price moderation will vary across markets, with prices decelerating faster in some markets than in others. By analyzing which markets are considered overvalued, we can identify markets at risk of a faster price deceleration.

While unadjusted house prices are now 55.1% above the peak of the 2006 housing boom, real house prices adjusted for purchasing power remain 9.3% below the peak of the 2006 housing boom.

“If housing is properly appraised, the buying power should be equal to or greater than the median selling price of a home,” says Fleming. “As of July, most of the top 50 markets we track remain undervalued by this metric, some significantly undervalued. For example, Detroit, Philadelphia and Pittsburgh are markets considered undervalued by nearly $200,000.

The five states with the largest year-over-year increases in the HRPI were Florida (+72.2%), South Carolina (+59.6%), Georgia (+59, 4%), North Carolina (+58.5%) and Vermont (+58.2%). %). No state recorded a year-over-year decline in the HRPI.

“However, real estate is local and not all markets are created equal. There were 15 markets considered overvalued in July, meaning the median selling price of existing homes exceeded the buying power of homes. A year ago, only four markets were considered overvalued,” adds Fleming. “San Jose, California was the most overvalued market. Median consumer spending power in San Jose in July was just over $770,000, just over half the median selling price of a home at $1,460,000. Therefore, the annual house price growth adjusts to San Jose. Price growth peaked at 19.4% in February 2022, but has since slowed rapidly to 4.6% in July – the second-fastest price deceleration among the top 50 markets we track, second only to Sacramento.

Of the basic statistical domains (CBSAs) tracked by First American, the five markets with the largest year-over-year increases in HRPI are Miami, Florida (+68.5%); Tampa, Florida (+67.3%); Charlotte, North Carolina (+65.1); Raleigh, North Carolina (+64.1%)); and Orlando, Florida (+62.5%). Of the Basic Statistical Domains (CBSAs) tracked by First American, no market saw a year-over-year decline in HRPI.

“The overvaluation was calculated based on July 2022 house prices and mortgage rates, but mortgage rates have since risen. If we hold household income and median selling prices constant at their July 2022 levels, increasing the average 30-year fixed mortgage rate from 5.4% in July to 6% in September increases the number of overvalued markets, adding San Antonio, Miami, Tampa, Florida and Salt Lake City to the list and bringing the total to 19,” says Fleming.

“Household overvaluation is a function of three factors: house prices, household income and mortgage rates. The preliminary nominal house price index from First American Data & Analytics indicates that the deceleration in house prices is likely to continue in September. Meanwhile, median household incomes are expected to continue to rise as the imbalance between supply and demand in the labor market persists, putting upward pressure on wages,” says Fleming. “While mortgage rates are expected to continue to climb over the next few months, much of the rapid rate increase is likely behind us. While markets seen as overvalued may have to adjust to the not-so-new reality of higher mortgage rates, housing market fundamentals still support a moderation in annualized house price appreciation rather than a sharp decline.

“Nationally, while month-to-month home prices may decline, year-over-year declines in home prices are not expected given the current imbalance of supply and demand and the continued strength of the labor market,” concludes Fleming. “Before the pandemic, the historical average for annual house price growth was just under 4%, as the market adjusts to a not-so-new normal pace of appreciation, some buyers who have pulled back due to the frenzy of super sellers ‘ the market could rebound.

The next release of the First American Real House Price Index will be the week of October 17, 2022 for August 2022 data.

Read the full report here.

Image: “Oak Terrace Preserve’s Walkable Neighborhoods” from North Charleston is licensed under CC BY-SA 2.0

]]> Home buyers forfeit contracts in the Sun Belt, especially in Las Vegas, Phoenix, Tampa and Texas https://homeassociates.org/home-buyers-forfeit-contracts-in-the-sun-belt-especially-in-las-vegas-phoenix-tampa-and-texas/ Mon, 26 Sep 2022 23:47:00 +0000 https://homeassociates.org/home-buyers-forfeit-contracts-in-the-sun-belt-especially-in-las-vegas-phoenix-tampa-and-texas/

The tide has turned and buyers are now forgoing deals in the Sun Belt as rates rise and home prices remain unaffordable.

Once pandemic boom towns, 15.2% of homes in Sun Belt towns that were under contract in August failed, or about 64,000 homes nationwide had their bids dropped, according to a new report from real estate brokerage Redfin Corp. RDFN,
-5.33%
said.

A year ago, only 12.1% of home buyers were abandoning transactions. Typically, 12% of trades failed before the pandemic, Redfin said. But the last time that number increased – before this fall – was at the start of the coronavirus pandemic in March/April 2020.

Buyers were most likely to walk away from deals in the Sun Belt, the company added, in cities including Phoenix, Tampa and Las Vegas. Shoppers were least likely to give up on purchases in major cities, including San Francisco and New York.

“A slowing housing market allows buyers to forego deals, as it often means they don’t need to forego important contract contingencies to compete as they did during the housing frenzy. last year’s home purchase,” Redfin noted.

Contingencies may include inspections to see if there are any problems with the home, or if they can get the required mortgage, or if the appraisal is different from the agreed amount.

“A slowing housing market allows buyers to pull back on offers.”


—Redfin

And “some buyers may also walk away from deals because they are waiting to see if home prices drop,” the company added.

More than a quarter of buyers looking to buy a home in Jacksonville, Florida declined in August, Redfin said, the highest percentage among the 50 major U.S. metropolitan areas. Las Vegas, Atlanta and Orlando followed. (Top 10 list below)

These destinations were hotspots during the pandemic for shoppers because they were affordable and in the age of remote working.

But that has changed.

“Sun Belt cities, including Phoenix, Tampa and Las Vegas, have attracted dozens of house hunters during the pandemic, driving up home prices,” Redfin said.

“Now their housing markets are among the fastest in the country, giving buyers room to pull back,” they added.

Redfin analyzed data from Multiple Listing Services dating back to 2017 to analyze dropouts.

The share of buyers exiting transactions was lowest in Newark, NJ, at 2.7%, followed by San Francisco, Nassau County, NY, New York, and Montgomery County, Pennsylvania.

High fares are a major reason for cancellations. The 30-year is at 6.29% as of September 15. That’s up from 2.88% a year ago.

Houses are also still expensive. As existing home prices fall, the median price of an existing home in the United States is still $389,500 in August, up 7.7% from a year earlier, the National Association said. of Realtors.

“I advise sellers to price their homes competitively based on the current market.”


– Sam Chute, a Miami-based realtor at Redfin

In this difficult environment of nervous buyers, “I advise sellers to price their homes competitively based on the current market,” said Sam Chute, a Miami-based real estate agent at Redfin, “because the offers fail and buyers are no longer willing to pay exorbitant prices.

To be clear, housing market indigestion was deliberately constructed: Falling house prices due to rising rates and sellers’ reaction to falling demand are a ‘good thing’, the president says of the Federal Reserve, Jerome Powell, during a press conference on Wednesday. when they announced the rate hikes.

“Housing prices were rising to an unsustainable level,” Powell said.

“Longer term, what we need is for supply and demand to be better aligned, so that house prices rise to a reasonable level…and people can afford houses again” , he added. “The housing market may need to undergo a correction to get back to this place.”

Here are the top 10 cities where offers fail:

Town

Percentage of pending sales that fell out of contract

Jacksonville, Florida.

26.1%

Las Vegas, Nevada

23%

Atlanta, Ga.

22.6%

Orlando, Florida.

21.9%

Fort Lauderdale, Florida.

21.7%

Phoenix, Arizona.

21.6%

Tampa, Florida.

21.5%

Fort Worth, TX.

21.5%

San Antonio, Texas.

21.1%

Houston, Texas.

20.6%

Do you have ideas on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at aarthi@marketwatch.com

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Study finds Charlotte homeowners wealthier in equity https://homeassociates.org/study-finds-charlotte-homeowners-wealthier-in-equity/ Mon, 26 Sep 2022 18:17:19 +0000 https://homeassociates.org/study-finds-charlotte-homeowners-wealthier-in-equity/

With the rise in home values ​​in recent months in Charlotte and beyond, a growing number of homeowners are seeing an increase in the equity in their property.

Even though the real estate market is showing signs of slowing, more than half of Charlotte-area homeowners with mortgages are now considered “equity-rich,” according to a study.

In addition to increasing your profits if and when you sell your home, there are also ways to use the equity in your home without selling when you need cash.

Here’s what to know about home equity, where Charlotte homeowners are now, and how to get equity out of your home:

What is home equity?

Home equity is the financial value of your home to you.

It’s calculated, explains personal finance education program Investopedia, by determining the “current market value” of your property and subtracting “any liens attached to that property,” such as a mortgage.

The equity in your home is variable because the market value of your property can go up and down over time and the amount of your mortgage will decrease as you make payments.

Are Charlotte owners getting ‘stock rich’?

As home values ​​have surged across much of the country in recent months, including Charlotte, experts say more and more homeowners are becoming “equity rich”: a phenomenon where homeowners are at least 50 % equity in their home.

A study – by real estate research firm Attom – found that up to 48.1% “of mortgaged residential properties in the United States were considered equity-rich in the second quarter of 2022”. That’s up, Attom noted, from 44.9% in the first quarter of 2022 and 34.4% in the second quarter of 2021.

The numbers looked even better for Charlotte owners.

Attom estimates that of the 484,356 properties with “ongoing mortgages” in the Charlotte metro area, 60.1% were equity-rich in the second quarter of 2022. That’s up from 56.3% in the first. quarter of the year and 1.8% of mortgages on properties that Attom says are “seriously underwater.”

Statewide, Attom puts the percentage of North Carolina’s 1,826,272 outstanding mortgages that are equity-heavy at 53.3% for the second quarter of 2022. That compares to 2.5% mortgages that Atom classifies as “seriously underwater”.

This matches much of what has been seen in the area.

According to Attom, of the top 10 states where the share of equity-rich homes grew the most from Q1 2022 to Q2, seven were in the South region. South Carolina was among them, with the share of equity-rich homes rising from 41.2% to 46.5%.

And a survey conducted earlier in the year by WRAL TechWire found that around 56% of owners in the Triangle area were now equity-rich.

How to withdraw equity from your home

When you sell your home, having more equity in your home means more profit.

But there are also ways to use the equity without selling your property.

A home equity loan, also known as a “second mortgage,” “allows you to borrow a lump sum against the equity in your current home at a fixed rate for a set period of time,” Investopedia explains.

You can also use your equity “to secure a new mortgage for more than the amount owing on your existing mortgage,” a process often referred to as “cash-in refinancing.” You can then use the funds to pay off your original mortgage and cover other expenses.

Refinancing means you will likely be subject to today’s rising interest rates.

Another option is a home equity line of credit, also known as a “HELOC”, which is “a revolving line of credit based on the equity in your home”.

“Often there’s a 10-year drawdown period, where you can access your credit as needed, with interest-only payments,” Investopedia explains. “After the drawdown period, you enter the repayment period, where you must repay all the money you borrowed, plus interest.”

Charlotte Observer Related Stories

Mary Ramsey is a duty reporter for The Charlotte Observer. Originally from the Carolinas, she studied journalism at the University of South Carolina and has also worked in Phoenix, Arizona and Louisville, Kentucky.

]]> The Daily Recap: UGA received its first test of composure https://homeassociates.org/the-daily-recap-uga-received-its-first-test-of-composure/ Mon, 26 Sep 2022 08:57:05 +0000 https://homeassociates.org/the-daily-recap-uga-received-its-first-test-of-composure/

Here is the September 26 edition of The Daily Recap presented by JFQ Lending.

Improve your calm

As Georgia’s win over Kent State didn’t go to plan, the Bulldogs were forced to stay calm and not let things get sideways as the Golden Flashes dragged on longer than expected.

After the match, the head coach Smart Kirby said it was actually a net positive for the program since that kind of play hadn’t happened yet. Given that Georgia has a number of players who are still gaining vital game experience, those kinds of moments can be beneficial over time.

“We have to keep our calm card in the back pocket. We can apply it at any time. We work and exercise that muscle all the time, and that hasn’t happened this year,” Smart said. “It happened several times today. I thought kids had to flex that (calm) muscle. You don’t feel a muscle is strong without using it, do you? We definitely need to use it today.

PFF Newsletter

Paul Maharry compiled the Pro Football Focus ratings from Saturday’s win over Kent State. Despite the struggling offense as a whole, the quarterback Stetson Bennet still came out with an overall rating of 88.2. Brock Bowers totaled an overall rating of 74.1, which seems a little odd considering his effectiveness as a playmaker for the Bulldogs.

Warren Brison led the defensive linemen with an 81.1 rating, which featured a 78.3 run defense.

The secondary didn’t fare as well, although the security dan jackson leads the way with an overall rating of 77.4.

By the numbers

Dave McMahon rounded up all the important stats from Georgia’s win over the weekend. It should be noted that Bowers has seven career carries, four of which are for touchdowns.

Also, run back Kenny McIntosh has 21 receptions in four games. Only four other former Bulldogs have recorded more than 21 receptions in four games since 1996, those players being AJ Green, Neighborhood Hines, Terrence Edwardsand Reggie Brown.

Post-game overreaction show

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