With the latest economic data in mind, RE.ality is beginning to take hold - yes, it took a while due to government intervention with people's minds and home prices; both of which should continue breaking down for the rest of this year.
Our general price opinion on Hoboken properties points to another decline of 20% or so, similar to the first phase of declines over the past couple years. Rentals are not holding up either as supply from the sale side continues to compete with existing lease renewals.
Household formation (in Hoboken) has always been falling in the face of rising optimism, so a mini bubble was brewing before this next leg down.
The cry from the realtor business?
"It's never been more affordable and it's a great time to buy!"
Somehow they have forgotten to justify why it won't continue to be that way - even more "affordable" - for the foreseeable future.
Today's Case-Shiller numbers were good nationally, but down for NYC. That's because the high prices of homes here benefited the least from any interest in the government stimulus.
The NAR lobbyists are screaming for the country's staple diet right about now. Any common sense on this issue would allow the inventory to flush out sooner rather than later. But that's a longer story.
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Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.57 percent with an average 0.7 point for the week ending July 8, 2010, down from last week when it averaged 4.58 percent. Last year at this time, the 30-year FRM averaged 5.20 percent. This rate is yet another all-time low in Freddie Mac’s 39-year survey.
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“With mortgage rates falling to historic lows, refinance activity has been strong over the past three months,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The Bureau of Economic Analysis. reported that the effective mortgage rate of all loans outstanding was just below six percent in the first quarter of 2010, the lowest since the series began in 1977. Since the start of the second quarter, two out of three mortgage applications on average were for refinancing, according the Mortgage Bankers Association."
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