Flashing Yellow Lights on Affordability – Chuck Barberini

Flashing Yellow Lights on Affordability – Chuck Barberini

Chuck Barberini Real Estate – Barberini Robinson Real Estate Group

A thought on affordability in the current and upcoming market. Low interest rates and record high rent rates seems to be the perfect storm for first time buyers. Unfortunately, the rapid rise in housing prices makes the transition from renter to owner is becoming more difficult and that trend looks to continue. Check out this article by Lawrence Yun and let me know what you think. Chuck

Yun: ‘Flashing Yellow Lights on Affordability’

DAILY REAL ESTATE NEWS | MONDAY, JUNE 27, 2016

The median price of an existing home reached a new record last month at $239,700. That price increase was primarily driven by repeat buyers trading up or downsizing from their current home, according to data from NAR. First-time buyers, meanwhile, continue to be held back by affordability issues.

Rent to Own
Rent to Own

Read moreHomes Getting Less Affordable for Many

“We are seeing flashing yellow lights on affordability,” says Lawrence Yun, NAR’s chief economist. “People who are currently renting and want to convert into ownership — major difficulty. Home prices are rising way too fast compared to people’s income and wage growth. … We are facing housing affordability challenges already with low mortgage rates, but what happens when the rates begin to rise?”

Affordability issues are the primary reason why housing hasn’t had a stronger recovery. “While housing should be pushing overall economic growth, it is not, due to the meager activity in home construction, says Diana Olick, CNBC’s real estate correspondent. “Rental demand has been fueling most of the construction activity, but multifamily housing starts are starting to slow, as most of the activity was in higher-priced, urban rentals, where supply is now high.”

“The tight supply of homes on the market continues to constrain sales, while low mortgage rates and job growth help fuel healthy demand,” notes Andrew LePage, research analyst at CoreLogic. “This results in a pressure cooker effect, and the market’s traditional pressure release valve — new home construction — isn’t helping much, given that new home sales are running more than 40 percent below historically normal levels.”

Source: “New Warning Lights for Rising Home Prices,” CNBC (June 23, 2016)

Mortgage Rates and Market Data

http://BarberiniRobinson.com

www.gophoenixpm.com
http://charliebarberini.com

Chuck Barberini Real Estate – Barberini Robinson Real Estate Group

 Flashing Yellow Lights on Affordability – Chuck Barberini

Author: Chuck Barberini

As a professional Realtor for over 15 years, I have lucky enough to work with several companies and many different brokers. I have learned and gained experience through all of my interactions and transactions. I have continued to work diligently to nurture and support my network of clients, both buyers and sellers, Real Estate colleagues, investors and other professionals in related fields. By working on and developing relationships, I have been able to maintain and grow my business through the dramatic ups and downs in the Real Estate market over the past decade. I am, however, more than just a Real Estate professional, I’m also a neighbor, a friend, husband and father. I take a keen interest in people and their well-being, working hard to earn and maintain their trust and respect. My upbringing here in the San Francisco Bay Area, as well as my professional experience, has given me the ability to work easily with a variety of Real Estate clients who have a variety of needs. From helping first-time home-buyers find that special home together, to strategizing with investors to find and secure wealth-building assets, I help navigate and problem-solve the complex processes and negotiations that are inherently part of this industry. I prefer to focus on the relationship rather than just the transaction, believing that a satisfied client will share my name with their friends and colleagues. This approach has helped me expand my local network to include the legal community involved with probate issues. And I am proud to be a preferred agent to a number of professionals in this area.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.