TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/57493
THE LATEST ANALYTICS "But even households with access to mortgage credit are hesitant to buy homes while job growth is weak and consumer confidence is low." — David Stiff, chief economist with Fiserv Construction Spending Up Index Predicts Home Pricing Slide for 2012 Recent data from the Fiserv Case-Shiller Index indicates a slide in home prices of nearly 4 percent is possible in the year ahead. T he latest analysis from a Fiserv Case-Shiller index indicates that home prices could slide back by 3.6 percent this year and may not completely pick up until the first half of 2013. Fiserv Inc. found a double-dip that began last summer stretch- ing into last fall as home prices declined in 340 of 384 metro- politan areas surveyed by the technology provider. It said some 302 areas slammed into new lows and projected that home prices will fall in a south- erly direction this year before climbing by 2.4 percent over the second quarter next year. 58 | THE M REPORT "Housing affordability has improved dramatically because of declines in both prices and mortgage interest rates," David Stiff, chief economist with Fiserv, said in a statement. "Many households cannot finance first-time or trade-up home purchases to take advan- tage of lower home prices be- cause of much stricter mortgage lending standards," he added. "But even households with access to mortgage credit are hesitant to buy homes while job growth is weak and consumer confidence is low." The company also said that prices fell by double-digits in 30 metropolitan areas, with home prices ticking up by 1 percent or more in 25 areas. Only two metro areas, including some in California and Nevada, will likely see a pickup in home prices over the second quarter this year. Sixteen metro areas will see price declines by double digits. "If economic growth picks up in the second half of 2011, then home prices should stabilize early next year," Stiff said, add- ing: "Potential buyers must be convinced that the economic re- covery is back on track and that the double-dip in home prices is nearly over before housing demand will begin to rise." to End 2011 NEW NUMBERS SHOW A RISE IN DOLLARS SPENT ON CONSTRUCTION DURING DECEMBER OF LAST YEAR. C onstruction spending ticked up for single-family homes and government projects in December to close one of the worst years on record for housing on a better note. The Commerce Department said recently that construction spending eclipsed November estimates by 1.5 percent to arrive at the seasonally ad- justed annual rate of $816.4 billion. Figures for private construction jumped to a seasonally adjusted annual rate of $529.7 billion, up 2.1 percent from November estimates that came out to $518.8 billion. Residential construction jumped to $241.2 billion in December, about 0.8 percent above November figures, while nonresidential construction hovered at $288.5 billion, up by 3.3 percent, each on a seasonally adjusted basis. Spending for public construc- tion projects went up in much the same way, totaling $286.6 billion on a seasonally adjusted basis, 0.5 percent above November estimates around $285.3 billion. Education projects pocketed roughly $70 billion on a seasonally adjusted basis, 0.6 percent less than es- timates of $71.1 billion from November. The spending pickup occurred in tandem with rising numbers for seasonal employment, home sales, and homebuilder confidence, leading some experts to suggest that the housing market could enter an upswing. SECONDARY MARKET ANALYTICS SERVICING ORIGINATION