St. Louis New Homes - St Louis Real Estate News

New home construction continues at record low pace for the year

By Dennis Norman, on September 20th, 2011

Last month I talked about how in 1959 the census bureau first started keeping track of new home construction activity and reported that there were 1.5 million new homes started that year and that, “unless something changes dramatically, 2011 will hit a new record low of new home starts. Well, unfortunately, the report for August paints a pretty bleak picture as well and in fact, shows new home starts are at an even lower rate than last month dropping from a seasonally adjusted annual rate of 423,000 homes the prior month to 417,000 homes in August.

The U.S. Census Continue Reading →

Double-dip recession concern by consumers is putting a damper on the housing market

By Dennis Norman, on September 19th, 2011

Fannie Mae’s Economics & Mortgage Market Analysis Group says that we are not out of the woods yet and that the economy is “flirting with another economic downturn” now after more than two years since the worst recession since the World War II era. Fannie Mae Chief Economist, Doug Duncan, said “the weakening economic backdrop, a persistently high unemployment rate, and fear of a double-dip recession are casting a shadow over the housing market.”

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HUD Report says housing market continues to remain fragile

By Dennis Norman, on August 31st, 2011

HUD released its U.S. Housing Market Conditions report for the 2nd quarter of 2011 which stated “housing data for the second quarter of 2011 indicate that the recovery in the housing market continues to remain fragile.” This did not come as a surprise, but what I did find a little surprising was the report showed that the market for new homes performed better than that for existing homes. The number of new homes sold rose in the second quarter and the year-over-year median sales price of new homes was up slightly. In contrast, the number of existing homes sold in Continue Reading →

New home sales drop again in July; 2011 new home sales continue on track to be worst year ever

By Dennis Norman, on August 23rd, 2011

Today, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for July 2011 showing a decrease of 0.7 percent from the month before, and an increase of 6.8 percent from a year ago. The seasonally-adjusted new home sales rate for July was 298,000 homes, down from an adjusted rate of 300,000 the month before and is a rate that if we finish 2011 at will make 2011 new home sales the lowest since the Commerce Department began keeping track of sales in 1963.

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FBI Report Shows Mortgage Fraud Continues at Elevated Levels

By Dennis Norman, on August 16th, 2011

The FBI released it’s Mortgage Fraud Report for 2010 showing that mortgage fraud continued at elevated levels in 2010 and was consistent with levels seen in 2009. The top states for mortgage fraud activity in 2010 were Florida, California, Arizona, Nevada, Illinois, Michigan, New York, Georgia, New Jersey, and Maryland.

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New Home Construction On Pace For Record Low in 2011

By Dennis Norman, on August 16th, 2011

In 1959 the census bureau first started keeping track of new home construction activity and reported that there were 1.5 million new homes started that year. In 2005 a record high 1.7 million new homes were started and in 2009 a record low 445,100 new homes. In 2010 there was a little improvement as there were 471,200 new homes started and things were looking up a bit, however, unless something changes dramatically, 2011 will hit a new record low of new home starts.

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued their report Continue Reading →

New home sales drop in June; 2011 new home sales on track to be worst year ever

By Dennis Norman, on July 26th, 2011

Today, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for June 2011 showing a decrease of 1.0 percent from the month before, and an increase of 1.6 percent from a year ago. The seasonally-adjusted new home sales rate for June was 312,000 homes, down from 315,000 the month before and is a rate that if we finish 2011 at will make 2011 new home sales the lowest since the Commerce Department began keeping track of sales in 1963.

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New home permits and starts increase in May; New home shortage coming?

By Dennis Norman, on July 19th, 2011

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued their report on New Residential Construction for June 2011 showing a very slight increase in single-family home building permits from the month before (0.2 percent), and a 9.4 percent increase in new home starts compared to the month before.

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‘Special’ Loans Available to Veterans 24/7

By Robert Fishel, on July 7th, 2011

Recently, I heard a radio commercial on the radio about “special” financing for certain veterans. The ad continues to imply this “special” loan is available for a limited time only. The good news is that the VA offers loans to members of the armed forces who have generally served for two years in peace time, or 90 days during conflict. Members of the National Guard or Reserves who have served for six years are eligible along with widows of veterans if the veteran died in a service-related incident. There are special circumstances for some veterans regarding eligibility.

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REO’s and Shadow Inventory are Roadblock to Recovery of Housing Market

By Dennis Norman, on July 1st, 2011

A report issued yesterday by Equifax reveals just how severe the impact of shadow inventory (homes that have been, or should be, foreclosed on but have not been put back on the market for sale yet) and REO’s (properties owned by lenders after acquiring through foreclosure) are on a housing market recovery.

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Groping Toward a Housing Recovery

By Dennis Norman, on June 28th, 2011

Last week I got to hear a presentation by Brendan Lowney of Economic Advisors, aptly titled “Groping Toward a Housing Recovery“, which I think is a perfect way of describing our current housing market, so perfect, I borrowed it for the title of this article. Mr. Lowney began his presentation with a very sobering statement, saying “it’s really hard to overestimate the severity of the downturn that we’re in. This is much worse than anything we saw in the ’70s or the early ’80s, if people remember, and it’s really akin in many ways to the Great Depression, and within Continue Reading →

New home sales decline in May; Up over 15 percent from year before

By Dennis Norman, on June 23rd, 2011

Today, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for May 2011 showing a decrease of 2.1 percent from the month before, and an increase of 13.5 percent from a year ago.

The seasonally-adjusted new home sales rate for May was 319,000 homes, down from 326,000 the month before. The supply of new homes on the market decreased from an adjusted 6.3 month supply the month before to a 6.2 month supply in May. The median new home price increased for the month to $222,600, a 2.6 percent increase from a Continue Reading →

New home construction increases in May; outpacing new home sales by 60 percent

By Dennis Norman, on June 16th, 2011

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued their report on New Residential Construction for May 2011 showing a 2.5 percent increase in single-family home building permits from the month before, and a 3.7 percent increase in new home starts compared to the month before.

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Robert Shiller on the Housing Boom and Bust and where home prices are headed

By Dennis Norman, on June 9th, 2011

Robert Shiller

I’m doing this article as I attend a presentation by Robert Shiller, Yale Economics Professor and Co-Founder of the S&P/Case Shiller Home Price Indices at the S&P Housing Summit 2011, as he discussed “Unusual Factors Influencing the Outlook for the U.S. Housing Market. So it may be a little choppy, but here are the highlights of his presentation “live”:

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Harvard University Report Paints Bleak Picture of Housing Market; Present and Future

By Dennis Norman, on June 8th, 2011

The “State of the Nation’s Housing“ Report for 2011 by the Joint Center for Housing Studies of Harvard University does not paint a very pretty picture of the housing market, nor does it give us a whole lot to look forward to with regard to the near-term future of the U.S. housing market.

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Will jobs fix the housing market or will housing fix the job market?

By Dennis Norman, on June 3rd, 2011

There is a lot of talk in the media today about the poor housing market and how an increase in employment would help bring the housing market back. However, the question is, will a recovery in the job market bring the housing market back, or will a recovery in the housing market bring the job market back?

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New home sales and prices increase in April; still down over 23 percent from a year ago

By Dennis Norman, on May 24th, 2011

Today, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for April 2011 showing an increase of 7.3 percent from the month before, and a decrease of 23.1 percent from a year ago.

The seasonally-adjusted new home sales rate for April was 323,000 homes. The supply of new homes on the market decreased from an adjusted 7.2 month supply the month before to a 6.5 month supply in April. The median new home price increased for the month to $217,900, a 1.6 percent increase from a revised median price of $214,500 the Continue Reading →

New Home Construction Declines in April; No Recovery in Site for Builders

By Dennis Norman, on May 17th, 2011

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued their report on New Residential Construction for April 2011 showing a 1.8 percent decrease in single-family home building permits from the month before, and a 5.1 percent decrease in new home starts compared to the month before.

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Housing and Economic Forecasts Point to Rising Activity and Flat Home Prices

By Dennis Norman, on May 13th, 2011

Speaking yesterday at a forum at a meeting of the National Association of REALTORS (NAR), several industry “experts” had reasonably optimistic opinions of the housing market and expect home sales to continue on an uptrend through 2012.

Among the experts at the forum was, of course, Lawrence Yun, the chief economist for NAR, who said he felt existing home sales would improve gradually, but unevenly. “If we just hold at the first-quarter sales pace of 5.1 million (home sales), sales this year would rise 4 percent, but the remainder of the year looks better,” Yun said. “We expect 5.3 million Continue Reading →

New home sales and prices increase in March

By Dennis Norman, on April 25th, 2011

Today, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for March 2011 showing an increase of 11.1 percent from the month before, and a decrease of 21.9 percent from a year ago.

The seasonally-adjusted new home sales rate for March was 300,000 homes. The supply of new homes on the market decreased from an adjusted 8.2 month supply the month before to a 7.3 month supply in March. The median new home price increased for the month to $213,800, a 2.9 percent increase from a revised median price of $207,700 the Continue Reading →

New Home Construction Activity Increases in March

By Dennis Norman, on April 19th, 2011

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued their report on New Residential Construction for March 2011 showing a 5.7 percent increase in single-family home building permits from the month before, and a 7.7 percent increase in new home starts compared to the month before. This comes on the heels of new home construction sinking to a 25 year low last month.

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Fannie Mae Offering 3.5 percent Buyer Assistance on HomePath Properties

By Dennis Norman, on April 12th, 2011

Fannie Mae announced today that people purchasing a Fannie Mae-owned HomePath property will receive up to 3.5 percent in closing cost assistance. The initial offer must be submitted on or after April 11, 2011; and the sale must close on or before June 30, 2011 to be eligible for the incentive. Additionally, buyers must reside in the home as their primary residence (sorry, nothing for investors).

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New home sales plummet in February, prices fall as well

By Dennis Norman, on March 23rd, 2011

Today, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for February 2011 showing a decrease of 16.9 percent from the month before, and a decrease of 28.0 percent from a year ago.

The seasonally-adjusted new home sales rate for February was 250,000 homes. The supply of new homes on the market increased from an adjusted 7.4 month supply the month before to a 8.9 month supply in February. The median new home price decreased for the month to $202,100, a 13.9 percent decrease from a revised median price of $234,800 the Continue Reading →

New home construction sinks to 25 year low

By Dennis Norman, on March 16th, 2011

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for February 2011 showing a 9.3 percent decrease in single-family home building permits from January, and a 27.0 percent decrease in new home starts compared to the year before.

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An overview of the 2010 Housing Market

By Dennis Norman, on March 15th, 2011

HUD just released it’s “2010 Overview of U.S. Housing Market Conditions which gave a recap of the housing market for 2010. I’ve previously reported on most of the data and information that HUD included in the report however I thought this report did a good job of giving a complete and concise look at the market for the year so I wanted to share it.

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Do you know who you are dealing with? St Louis Mortgage Interest Rate Update

By Robert Fishel, on March 9th, 2011

There have been many changes in the mortgage banking industry in the last couple of years. New regulations and laws now stipulate exact procedures, timetables and specific lending requirements to obtain a home mortgage. Mortgage bankers must obtain a federal license and state licenses for every state in which they originate loans.

These changes in lending policies are designed to protect and aid borrowers when making mortgage decisions to purchase or refinance a new home.

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2010 Census data disappointing for St. Louis; what is effect on the St. Louis Real Estate market?

By Dennis Norman, on February 25th, 2011

It’s hard to miss the fact that the US Census Bureau just released some of the results of the 2010 census for our area. It’s been all over the media about St. Charles County’s population surpassing the City of St. Louis and moving it into the spot of the third largest county in the State.

Being the data junkie I’ve become I decided to tear into the numbers and see how the 2010 data compared with the 2000 data to see what changes have taken place in the last decade and see what I could glean from the data to Continue Reading →

New home sales fall in January…down over 18 percent from a year ago

By Dennis Norman, on February 24th, 2011

Today, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for January 2011 showing a decrease of 12.6 percent from the month before, and a decrease of 18.6 percent from a year ago.

The seasonally-adjusted new home sales rate for January was 284,000 homes. The supply of new homes on the market increased from an adjusted 7.0 month supply in December to a 7.9 month supply in January. The median new home price decreased for the month to $230,600 a 1.8 percent decrease from a revised median price of $235,000 the month Continue Reading →

New home construction starts off 2011 with a ‘fizzle’

By Dennis Norman, on February 16th, 2011

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for January 2011 showing a 4.8 percent decrease in single-family home building permits from December, and a 1.0 percent decrease in new home starts compared to the month before.

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The Benefits of ARM’s; St Louis Mortgage Rate Update

By Robert Fishel, on January 26th, 2011

Even though over the past few years, ARM’s (adjustable rate mortgages) have received somewhat of a “bad name”, there are truly benefits to them including:

ARM rates are now more attractive than ever before. Rates have fallen to 3.50% for a 5/1 ARM. ARMs are predictable. Rates are capped so there are no surprises for borrowers. Rates adjust only on the remaining principal of the loan. Rate adjustments could decrease (increases are limited to the prevailing index in which the ARM is based). Lower Monthly Payments – Increases the buying power of borrowers which attracts buyers to new homes. Continue Reading →