Roy Oppenheim provides a summary of the current real estate market and where it’s heading the remainder of the year for homeowners.
National home prices seem to be rising at a very moderate rate. As of this month home prices are up 1.56% year-to-date. Last year during this period we were witnessing a 2.1% year-to-date increase. That’s about a 25% drop in growth. Of course, some price increase is better than none, or even worse, a declining home market. However, it’s hard to ignore the fact that the rebound is slowing down. Just a few days ago Morgan Stanley revised their 2014 total home sale projections from 5.75 million to 5 million.
Washington is also concerned with the slowdown of the housing rebound. For the past year, top policy makers in the White House have been worried that the housing sector, which is historically key to an economic recovery, is struggling to hold its traction. Due to these worries, the Obama administration and federal regulators are now –get this– advocating for policies to LOOSEN lending practices by banks. In the coming weeks, six agencies are expected to finalize rules that propose to abandon earlier rules requiring larger down payments on mortgages.
So why is home value growth slowing down when most are convinced that the market has bottomed out, the stock market is hitting all time highs and the economy seems more robust?