Housing news 5.1.2017

This week in housing news you can use, home prices set a new U.S. record, 20 markets outperform others for profit, and Beyoncé may be buying LA’s most expensive house.

New home-price highs

The S&P CoreLogic Case-Shiller Indices – measuring U.S. home prices – showed that home prices hit their fourth consecutive all-time high since 2013. The National Home Price NSA Index (measuring single-family homes each month in nine census divisions) increased by 5.8% in February, up from the previous month’s 5.6% uptick.

The 10-City Composite increased 5.2% annually (up from 5% the month before) and the 20-City Composite increased 5.9% (up from 5.7% in January).

Redefy housing news 5.1.2017 Case-Schiller index

Source: HousingWire

Housing starts and why they matter

Housing starts refers to the number of new homes builders started construction on in a given month. Why do housing starts matter to home buyers? New construction, according to Realtor.com, is an indicator of an area’s economic health. It “signals more jobs, higher salaries, and an abundance of loans to fund businesses and other endeavors.” It means there are more homes available to purchase, which is good news in a low-inventory market. Plus, adding more inventory brings down inflated prices.

“We’re relatively optimistic,” said Andres Carbacho-Burgos, Moody’s Analytics senior economist. “By end of 2017, we expect housing starts to be closer to 1.7 million,” or a 10% increase over a year earlier.

Source: Realtor.com

20 most profitable housing markets

A recent ATTOM Data solutions ranked the 20 best-performing U.S. housing markets for return on purchase price in the first quarter of 2017.

Rank City Return Price Gain
1 San Jose-Sunnyvale-Santa Clara, California 71% $356,000
2 San Francisco-Oakland-Hayward, California 65% $276,750
3 Seattle-Tacoma-Bellevue, Washington 56% $139,325
4 Portland-Vancouver-Hillsboro, Oregon-Washington 52% $110,799
5 Stockton-Lodi, California 51% $101,000
6 Modesto, California 51% $87,500
7 Los Angeles-Long Beach-Anaheim, California 50% $187,000
8 Denver-Aurora-Lakewood, Colorado 50% 110,000
9 Vallejo-Fairfield, California 47% $115,000
10 Urban Honolulu, Hawaii 46% $161,110
11 Salem, Oregon 46% 70,800
12 Greeley, Colorado 44% $85,050
13 Fort Collins, Colorado 43% $97,500
14 Sacramento-Roseville-Arden-Arcade, California 43% $99,000
15 Oxnard-Thousand Oaks-Ventura, California 43% $160,000
16 Boston-Cambridge-Newton, Massachusetts-New Hampshire 41% $111,100
17 Riverside-San Bernardino-Ontario, California 41% $90,000
18 San Diego-Carlsbad, California 41% $144,000
19 Austin-Round Rock, Texas 39% $81,795
20 Port St. Lucie, Florida 39% $53,000

Source: Credit.com via CBS News MarketWatch

Beyoncé and Jay Z to buy LA’s most expensive home

Redefy housing news 5.1.2017 Beyonce house satellite

Music’s golden couple have twice been outbid for a home in Los Angeles. Their latest tactic was to go big. Way big. Beyoncé Knowles Carter and Shawn “Jay Z” Carter submitted a $120 million bid for an 8-bedroom, 11-bath mansion and grounds under construction at 454 Cuesta Way. It was listed for $135 million by Hilton & Hyland, but their “low” bid still would qualify as the highest paid for a home in Los Angeles.

Source: Business Insider, Los Angeles Business Journal

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