Written By: Glenn Michaels, Op-Ed Writer
Periodically the United States Department of Housing and Urban Development (HUD) and other organizations keep tract of the housing industry. When the numbers are up that is usually an indication that the mortgage industry will increase or decline.
At the present moment the recovery is favorable for the housing industry and mortgage lending should be up. The latest data shows growth in homeowner’s equity and a steady growth in monthly income. Real Estate sales is up and at a pace not seen in nine years.
Below are the reasons for the growth:
Sales of previously own home sales (existing homes) climbed at the highest pace in more than nine years. The National Association of Realtors (NAR) reported that sales of existing homes in May 2016 was up 5.53 million and fastest since February 2007. (5.9 million) in the fourth quarter . The change in equity since April 1, 2009 when the Administration initiated its broad set of actions stabilizing the housing industry now stands up except for the midwestern United States.
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Homeownership equity continues to show sharp gains. Homeownership equity (total) less mortgage debt is about $1.3 trillion. The increase in owner’s equity was $371 billion in the fourth quarter.
The values in the New York Metropolitan area is sky rocketed. Areas that previously had values of $300 – 400,000.00 are now being sold for $800,000 or more. Recently I was in downtown Brooklyn New York where I noticed several new condominium projects being built. The area where the construction is taking place are in areas with minimum travel time to Manhattan, New York. The property values are between $800,000 to $1.4 million sales prices. Properties previously were very low but due to the high value of Manhattan, New York where most cannot afford they people are moving to parts of Brooklyn and Queens New York.
Real Estate values in most of Long Island, New York are up sharply. Across the street from my home has just listed g for sale for $589,000. The property was a “Zombie” home with a value of about $200,000.00. A “flipper” purchased the house and did a complete gut rehab. The house is now listed at $589,000.00. The question is whether the new owner will get his asking price.
Real Estate values move up and down very often based on recent sales of the area where a property is situated, Supply and demand also enters the equation in areas where there is a supply and demand situation.
If you are uninformed regarding the property values in your area there are several web sites and applications to determine the property value.
About The Author
Glenn Michaels - As an op-ed writer, Glenn Michaels is a mortgage underwriting instructor for CampusUnderwriter (www.MortgageUnderwriter.org). As a BBA & FHA DE Underwriter, Glenn is a Pace University graduate who also graduated from New York University’s School of Mortgage Finance. Glenn has conducted numerous training classes and has worked in the mortgage banking industry for 38 years.
