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Community Reinvestment In The New Year
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Which credit union has the highest loan-to-share ratio?
How has the industry’s net interest margin changed and which state reported the highest level?
Missed Marketing Messages? A Look at Lost Opportunities for Credit Unions
Share Growth, American’s’ Personal Savings Rate Not Always Linked
Regional Loan Growth Gaps Illustrate Strengths, Challenges
Spurring Share Growth Momentum in 2007
The Value of Realism
June 6, 2005
To point the 4 greatest factors to think about when you are thinking of investing on properties is quite really excellent. I personally appreciate it. Sometimes we do issues out of the blue, at the spur of the moment; but issues like this requirements a lot of thinking. It truly is great. Post far more to enlighten a lot more.
Joseph - Expert Roofer Los Angeles
Do they modify the home price index to take into consideration rates' impact on avg monthly payments? If not, then the PV of future price appreciation might not be as large as otherwise suspected. The extended use of ARMs with initial low monthly payments would also then be partially responsible for the divergence between the two which could create an additional way that the scenario could play out. Rates increase, hybrid mortgages turn into higher monthly payments, buyers in this market become renters in the next and home values see a sideways or slight drop but rent accelerates rapidly.
I ENJOY MOST OF THESE TYPE OF ARCTICLES, WE SHOULD BE READING THEM IN THE FASCIST CONTROLED MEDIA, HA HA. THAT'l BE THE DAY.
Neither the House Price Index nor the owners' equivalent rent series takes interest rates or the size of mortgage payments into consideration. I strongly agree that the use of nontraditional mortgages is contributing to the divergence between the two series. -Melanie El-Sabaawi
Melanie - A problem in the OER/Price Index equation is that demographically stable areas tend to have higher ratios than more mobile areas. For example, it is a factor of 10 in DC, but 17 in Philadelphia (a $250,000 house in DC would generate $25,000 p.a.in rent, but a house of the same value in Philadelphia would only generate $15,000 p.a.). Happy 4th! Dick McC
Sure, interest rates affect home pricing. And, the supply of rental properties in some markets far exceeds the demand giving a distorted comparison between home values and rental rates. Also contributing to the price push are forces that are shifting the demand curve to the right (increasing the demand at every price point) and the supply curve to the left (reducing the supply of housing at every price point) and effectively raising the equilibrium price. The rightward shift in the demand curve for new home construction is caused by: 1. More of the population is within the prime home ownership age range (35 to 55) 2. More people are acquiring “second homes” 3. The aging US housing stock is due for replacement (the home constructed during the boom that began with the returning WW II GI’s is now 60 years old and mechanically outdated). At the same time, the supply curve is shifting left due in part because of: 1. Increasing land use restrictions 2. Increasingly restrictive (therefore expensive) ordinances on “tear downs” 3. Ordinances mandating the construction of “affordable housing” which physically reduces the land available for construction of supply to meet the demand along the rest of the curve 4. Municipal levy of “Impact Fees” on new subdivisions
While mortgage affordability is important, so are factors such as: a) The affordability is short-live if it's an ARM/OptionArm products b) Rise in speculative property flippers mean increase chance for surpluses to exists. This is why builders are starting to put severe restrictions on buyers to reduce the impact of surplus inventories from increasing. c) Real real-estate investors expect ~10% annual return on the property. This is to cover taxes, insurance, maintenance, and standard profit margins. Right now, for hot markets such as Southern California, the annual return is 5%. This means most investors who are renting out their property are LOSING money.
Community Reinvestment In The New Year
NCUA Board’s July 25 Decision Shows Need...
Missed Marketing Messages? A Look at Los...
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