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Mortgage Originations: The Good, The Bad, And the Ugly in 2014

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54 | Th e M Rep o RT o r i g i nat i o n s e r v i c i n g a na ly t i c s s e c o n da r y M a r k e t ANALYTICS the latest Board local edition Homebuilder to open texas Franchises The sTaTe lacks homes To accommodaTe aging BaBy Boomer lifesTyles. TEXAS // Epcon Communities Franchising has identified a lack of available housing for baby boomers in future Texas markets and therefore plans to open fran- chises in the state to capitalize on the expected demand. According to an email released by Epcon, almost a quarter of new home sales in the next decade are expected to involve adults of 55 or higher. Cited in the email is a survey conducted by Hanley Wood's Metrostudy, which states that this particular demographic will likely seek alternatives to their current homes, but at the same time wishes to avoid retirement communities. Epcon says that the communi- ties it plans to establish in the Texaplex region—that is, Dallas, Fort Worth, and Houston—are for "active" adults. The designa- tion refers to those who are looking to pursue hobbies or travel, and therefore require homes that have little or no maintenance required by the homeowner. Because all homes require maintenance, such a desire necessitates ease-of-access to contractors that will do the work. Epcon says it will provide this with homeowners' and condo associations. Tim Rini, vice president of Epcon, explained the move, saying that the market study revealed only a small number of communities currently under construction that will include associations to perform most maintenance requirements of homes, such as painting and landscaping. The same study also examined the possible demand for homes befitting of aging residents, such as homes with the master bedroom located on the first floor, and found that the volume of those homes under construction also fell short of expected future demand. Florida Housing steady in second Quarter single-family sales wenT up while condos and Townhouses wenT down. FLORIDA // The housing market in the Sunshine State remained stable through the second quarter of 2014, according to a new report issued by Florida Realtors. Listings are up, inventory is gaining, and closed sales are high- er than they were at this time last year, the group reported. Florida Realtors President Sherri Meadows commented on the steady course of the market and also on unemployment and home prices in the state: "As of June, the state's unemployment rate is 6.2 percent. More jobs are being created, which is good news for Florida's economy and a strong housing market. And in another positive trend, median prices continue to rise, though the pace has slowed somewhat over the past several months." The numbers show that closed sales of single-family homes increased by 7.3 percent year-over- year to a total of 67,579, and the median price for the same homes increased by 22 percent over the two years since the second quarter of 2012, rising from $147,450 up to $180,000 in that period. The chief economist for Florida Realtors, Dr. John Tuccillo, says that the numbers are indicative of a market that is headed for post- recovery maturity—if only a few tweaks are made. "While prices throughout the state tend to be up, sales are mixed with single-family sales growing, and condos and townhouses declining," Tuccillo said. "There are a lot of rea- sons for this, but the major factors are the reduced role of bulk investors, along with the difficulties faced by households with essentially flat incomes and thus limited access to mortgage credit. This market is sustain- able, but either or both of these roadblocks must be removed if it's to take off again." Housing Metrics at 89% of last 'normal' levels The homesTreTch Back To normal will Be carried By joBs added. WASHINGTON, D.C. // The number of housing markets that have returned to their last nor- mal levels of economy activity remained flat in August, mark- ing a stall as the recovery comes down to a slower pace. Of the nearly 350 metro mar- kets surveyed in the National Association of Home Builders (NAHB)/First American Leading Markets Index (LMI), the group reports 56 have returned to or exceeded their previous normal levels of economic and housing activity based on housing per- mits, home prices, and employ- ment. While unchanged from the NAHB's June survey, the latest index reflects a yearly increase in seven markets. Meanwhile, 78 percent of markets have seen im- provement over the last year. As of the August survey, the association estimates that hous- ing and economic activity are running at 89 percent of their normal levels. "Things are gradually improv- ing," said NAHB Chairman Kevin Kelly. "As the job market grows, we expect to see a steady release of pent-up demand of home buyers." Of the three index components, permit issuance on new, single- family homebuilding is lagging behind the other two, having climbed to only 43 percent of nor- mal levels, the NAHB reported. Meanwhile, employment is out- pacing the other two, thanks to the ongoing streak of national job gains above 200,000 each month. Out of all major metros sur- veyed, Baton Rouge, Louisiana, remains on top, leading all others with an index of 1.39—or 39 percent better than its last normal market. Other major metros leading the list include Honolulu, Oklahoma City, Houston, and Austin.

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