Real Estate Market

Home Equity On the Raise

At last we are finally seeing some positive gains in home equity.   After years of loss, the Real Estate market is enjoying some tremendous gains with values increasing on homes throughout the Untied States.

The following article discusses what that can mean for a senior who has been unable to apply for a Reverse loan because they didn’t have enough equity to qualify for it.

“Senior Home Equity Rises Nearly $50 Billion in Q1

Posted By Jason Oliva On June 13, 2013 @ 5:03 pm In News,NRMLA,Reverse Mortgage | No Comments

Senior home equity is on the rise, increasing $49.5 billion in the first quarter of 2013, according to the latest National Reverse Mortgage Lenders Association (NRMLA)/RiskSpan Reverse Mortgage Market Index [1] (RMMI).

The quarterly increase in senior home equity was driven by an estimated $45.1 billion increase in the aggregate value of senior housing and a $4.4 billion decline in mortgage debt held by seniors, notes NRMLA.

“Today’s report continues a positive trend for the American housing market and for senior homeowners,” said NRMLA President Peter Bell.

Rising home equity and returning home values could signal that seniors will have more financial resources available to them during retirement, and that a reverse mortgage could help cushion retirement security for many senior homeowners.

“With proper planning, using a reverse mortgage to access that equity is one option to help fund living expenses, home maintenance costs, or health care needs,” added Bell.

The first quarter of 2013 marks the fourth consecutive quarter the RMMI has posted a gain, rising 1.5% from last quarter’s reading [2] to a level of 155—the index’s highest level since first quarter 2009.

While the index has risen four months in a row, the estimated $3.25 trillion aggregate value of home equity owned by seniors eligible for reverse mortgages is still 19% below its peak level of $4 trillion in the fourth quarter 2006.

Analyzing trends in the home values, home equity and mortgage debt of homeowners age 62 and older, the RMMI is updated on a quarterly basis and tracks data beginning at the start of 2000.

Since the RMMI’s starting point, the collective home equity of Americans 62-years and older has grown by 55%.”

Written by Jason Oliva [3]

 

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Real Estate Market Improves

After a long period of time, it appears that maybe the Real Estate market is starting to come back to life.   There is a durst of Listings on the market and pent up demand for those trying to buy a home for the first time and sales prices are increasing.

Here is an article that discusses the latest news and trend that seems to indicate that Real Estate is on an up swing.
NAR: Home Sales to Rise 9% in 2013

January 29th, 2013 | by Elizabeth Ecker Published in Reverse Mortgage

“Home sales are expected to continue on an uptrend with an expected 9% increase in 2013, according to estimates released this week by the National Association of Realtors.

Pending home sales, tracked by NAR, fell in December from 106.3 to 101.7 on the association’s index scale but maintain a lead over year-ago sales which as continued for 20 consecutive months. Further, says NAR, sales will rise in the coming year on buyer interest and more available inventory of housing.

“The supply limitation appears to be the main factor holding back contract signings in the past month,” said Lawrence Yun, NAR chief economist. “Still, contract activity has risen for 20 straight months on a year-over-year basis,” he said. “Buyer interest remains solid, as evidenced by a separate Realtor® survey which shows that buyer foot traffic is easily outpacing seller traffic.”’

The second half of this article will be in my next post.

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