Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Mortgage

Clear Capital: 7 housing markets in bubble territory

This is a "cause for concern"

The housing market is trudging along, at best, according to Clear Capital’s May Home Data Index. This includes seven markets, considered “major” in density and culture, which are in bubble territory.

The seven markets landed the “bubble” title after two years of consecutive quarterly softening, meaning each subsequent quarter, over the two year period starting May 2013, has seen less growth than the previous quarter.

And as for any anomalies, Clear Capital ruled out seasonality since two summers and winters have gone by with no observed impact on the softening.

Click to enlarge

Clear Capital

Source: Clear Capital

“While it may come as no surprise that key markets with booming tech economies, like the San Francisco Bay area, are in bubble territory, there are seven others that meet our same definition of a bubble,” said Alex Villacorta, vice president of research and analytics at Clear Capital. 

“After two years of moderating gains, originating from the irrational exuberance of once-in-a-lifetime deals, quarterly growth has decreased, stagnating to less than 1% in all markets except the Riverside, California and Miami, Florida after observing an average rate of 4.4% two years ago,” he added.

“Seven markets is certainly cause for concern and cumulatively bubbles bursting across the nation could put the June and spring rush for housing on the back burner,” she continued.

And the nation’s results are not faring too much better.

While May’s top performing markets continue to see improvements, no one market is on pace to match the rates of growth observed over the last 12 months.

“In other words, something big needs to happen for the nation’s steadiest markets to best their current yearly rates of growth, something that has yet to be seen in force as we enter the height of the real estate season,” the report stated.

Click to enlarge

Clear Capital

Source: Clear Capital 

Most Popular Articles

Better.com lays off LOs, secures $750M cash injection

Digital mortgage lender Better.com is laying off 9% of its workforce ahead of a $750 million cash injection from financial backer SoftBank Group.

Dec 01, 2021 By

Latest Articles

Who’s afraid of the PSPA?

Stakeholders are divided over whether, in light of proposed changes to its capital rule, the FHFA should retool its agreement with the U.S. Treasury and remove policies some say never belonged there in the first place.

Dec 06, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please