The average size of the new American home grew in 2011.
That’s not a typo.
“But, wait,” you’re saying to yourself. “I thought we were all ‘going green.’ And economizing. And financially strapped.”
Flying in the face of market conditions and a healthy push for environmentally friendly housing, the average newly constructed home in 2011 inched closer to the 2005 record for sheer mass. Recent figures from the U.S. Census Bureau
show that the average new home grew to 2,480 square feet in 2011. That’s up from 2,392 square feet in 2010, and only 41 square feet off the 2005 size record.
Home prices are expected to drop another 0.7 percent before the year ends, according to the March 2012 Zillow Home Price Expectations Survey.
The prediction is a more negative one than expressed in the December 2011 survey. At that time, respondents predicted only a 0.2 percent decrease in 2012 home prices.
“Looking at the longer history of these forecasts by top economists, the bottom in home prices always seems just around the corner but never quite here,” said Zillow Chief Economist Stan Humphries.
Zillow’s survey analyzes responses from more than 100 economists, real estate experts and market strategists about the future of the real estate market. Economists for Zillow suspect that a recent drop in the Case-Shiller U.S. National Home Price Index caused many respondents to scale back their optimism.
“The fourth quarter drop in the national Case-Shiller index was sharper than some expected and is the likely reason so many of the economists in the survey revised their forecasts downward,” Humphries said.
Prices are still expected to improve in 2013, although at a slower pace. The March survey projects a 1.39 percent rise in home prices by the end of 2013, compared to December’s prediction of a 1.75 percent increase.
“Conditions across the country vary considerably. Some markets have already hit bottom and are experiencing tight inventory and multiple offers, while foreclosures and negative equity continue to pull down the housing market in many other parts of the country,” Humphries said.
Slow and Steady
Recent market skepticism has created a ripple effect on price expectations through 2015. March survey respondents tempered their price projections for each year, although 2016 held steady at an anticipated 3.32 percent increase. Here's a look at the longterm breakdown from Zillow:
Photo courtesy of Images_of_Money
||March 2012 Price Projection
||December 2011 Price Projection
Foreclosures rose in January 2012, a sign that banks are beginning to unclog the foreclosure pipeline.
According to RealtyTrac Inc
., January foreclosure repossessions rose 8 percent from the previous month, and total foreclosure filings were up 3 percent from December.
This is not another article about foreclosures, tight credit, or the housing market crisis.
Nope - this is a recap of all the good news surrounding the housing market
. From increasing sales to shrinking unemployment rates, the real estate industry has lots of reasons to smile.
Take a moment to relish in these positive findings from the National Association of Realtors (NAR).
Waiting for a market turnaround? Keep checking your watch.
Research firm Clear Capital has just released its Home Price Index, which analyzes home prices from January 2011 through the end of January 2012. The report shows a nationwide decline in home prices, with big losses in the Midwest.
National home prices fell 2.6 percent from 2011 to 2012. Quarterly losses for the nation were more temperate at 1.6 percent.
An increase in real estate owned (REO) sales gets much of the blame for the nationwide losses. Clear Capital found that REO sales accounted for 25.4 percent of total home sales as of January. REO properties generally sell at big discounts (22 percent in December 2011, according to the National Association of Realtors), which can significantly bring down the national price average.
The 2011 Profile of Home Buyers and Sellers was recently released by the National Association of Realtors (NAR). Let’s cut down the monstrous report into the 11 most interesting findings.