Trojan Estate http://trojanestate.com/ Tue, 11 Jan 2022 16:01:27 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://trojanestate.com/wp-content/uploads/2021/04/cropped-icoon-32x32.png Trojan Estate http://trojanestate.com/ 32 32 12 homes for sale in Greater Manchester with lots of potential for first-time buyers https://trojanestate.com/12-homes-for-sale-in-greater-manchester-with-lots-of-potential-for-first-time-buyers/ Tue, 11 Jan 2022 07:12:09 +0000 https://trojanestate.com/12-homes-for-sale-in-greater-manchester-with-lots-of-potential-for-first-time-buyers/

One of the hardest parts of buying your first home can be deciding which neighborhood to live in.

When it comes to a county as large as Greater Manchester, house prices fluctuate widely depending on which part of the region you choose.

Generally, Oldham, Rochdale, Wigan, and Bolton tend to be the more affordable areas where first-time buyers are most likely to get the best value for money, but you can still find great deals in the rest of the region. .

Whether you are looking for a home close enough to move in directly or a doer-upper to put your own stamp on, there is currently a mixed standard of properties on the market on Rightmove.

READ MORE: Government mortgage programs that all first-time buyers should know before buying a home

The average price of a property in Greater Manchester currently stands at £ 232,326 this month, according to Zoopla.

In an effort to secure the best deal, here is our pick of 15 homes for sale under £ 200,000 that have the most potential and future value to first-time buyers.

Rue Léopold, Wigan

£ 130,000



Léopold Street

A good deal on the market right now considering the average price of a home is this semi-detached house in Wigan.

Perfect for a starter home, this two bedroom property has been recently refurbished and considered direct move-in ready.



Kitchen dining area

The house has an entrance hall, living room, kitchen-dining room, two double bedrooms and a bathroom.

Rare for this price, the property has plenty of outdoor space with gardens to the front and back, as well as a driveway.

Radcliffe Road, Bolton

£ 150,000



Radcliffe Road

This semi-detached house in Bolton has all the amenities to make it an ideal first home.

Larger than it initially looks, this two-bedroom home includes a variety of spacious rooms and the addition of a furnished loft.

Well maintained, the ground floor of the property comprises a hallway, fitted kitchen, lounge, double doors to a dining room and patio doors to a modernized courtyard.



Dining room

Upstairs are two good sized double bedrooms, a family bathroom and further stairs to the mezzanine, which could be used as an additional or comfortable bedroom.

Other unique features of this home include a closet under the stairs which has been converted into a pet bedroom and a workshop at the end of the back yard.

Walmer Street, Gorton

£ 160,000



Walmer Street

Located in Gorton, this extended townhouse offers ample space for first-time buyers.

The three bedroom property has been finished to a high standard, offering buyers the option to move in directly.

The house consists of an entrance hall with storage under the stairs, dining room, living room and a spacious kitchen which has been extended.

There are two double bedrooms, a single bedroom and a family bathroom on the first floor, as well as a garden to the front and an enclosed courtyard to the rear.

Prescott Drive, Denton

£ 160,000



Prescott Walk

This terraced house in Denton has a lot of potential as a starter home and a great investment for first-time buyers.

Although in need of an update, the Three Bed House has plenty of space inside and out that you can create on your own.



Food

On the ground floor, the property has an entrance hall, toilet, living room, rear porch with storage under the stairs and a long kitchen-dining room to the rear with double doors leading to the garden.

On the first floor there are two double bedrooms, a single bedroom and a bathroom, all accessible via a landing.

Henrietta Street, Ashton-Under-Lyne

£ 165,000



Henriette Street

In Ashton-Under-Lyne, a three story terraced house is for sale and has recently been completely renovated.

Perfect for first-time buyers looking to move in directly, the three-bedroom home offers spacious rooms and unique period features.

The house consists of a hallway, living room, dining room and kitchen on the ground floor, and on the first floor there are two double bedrooms.



Inside

On the second floor there is a storage room, another bedroom and a large bathroom.

Outside there is a garden to the front and an enclosed courtyard to the rear which leads to a large enclosed common area.

Near Kimbolton, Gorton

£ 175,000



Close Kimbolton

For first-time buyers who are ready to give a home some attention, this semi-detached may be for you.

The two bedroom house has a lot of potential with room to spread out to the side if needed.



The front bedroom

The house currently consists of an entrance, a living room, a kitchen-dining room, a landing, two bedrooms and a bathroom.

It also benefits from a driveway to the front and a large garden to the front and rear.

Manchester Road, Rochdale

£ 180,000



Manchester Road

This semi-detached house in Rochdale could be considered the perfect ready-made home for a first-time buyer.

With three bedrooms, the modern townhouse has plenty of space and potential for a starter house.

The ground floor has a hallway, a toilet, a fitted kitchen, a living room with a dining area and patio doors to the garden.



Salon

Upstairs, three generously sized bedrooms, one with an en-suite bathroom and a family bathroom.

There is a large rear garden with a patio as well as two allocated parking spaces.

Bridgewater Road, Worsley

£ 180,000



Bridgewater Road

This two-bed house in Worlsey is more than it looks at first glance.

This spacious end terrace is an ideal buy for first-time buyers, priced well below the area average of £ 277,239.



Food

Well presented, the house comprises an entrance hall, a living room with a picture window to the front and a modern fitted kitchen and dining area on the ground floor. On the first floor are two double bedrooms and a private bathroom.

There are front and back patios that could use some updating to add more potential to the home.

Shaw Road, Rochdale

£ 180,000



Shaw Road

Another property in Rochdale is listed with enormous potential for a first-time buyer.

This semi-detached house benefits from a huge rear garden with stunning views over the countryside.



Garden with a view

The raised two bedroom terraced house is spacious with an entrance porch, living room, dining room, extended kitchen, two good sized bedrooms, with the possibility of a further bedroom and a bathroom with separate toilet .

On the outside, the house also has a driveway, an individual garage and an area with facade that would require works.

Place des mousses, bury

£ 180,000



Kitchen dining area

In Bury, this two bedroom terrace house has enough space for a starter house, with the addition of an extremely long garden with a terrace to the rear.

Ideal for first-time buyers, the house consists of a living room, a kitchen-living room, a landing, two bedrooms and a family bathroom.



Garden

There are also two cellars which could be converted to provide additional space.

Mottram Road, Hyde

£ 180,000



Mottram Road

This terraced house in Hyde would be an impressive first home, with four bedrooms.

The period property has a host of traditional features with a lot of potential for first time buyers.



Food

The house comprises a modern kitchen-diner, a living room with a sitting area with a picture window and a wood-burning stove, a toilet and a utility room on the ground floor. Upstairs, four bedrooms and a family bathroom.

The current occupants have had plans drawn up to create a sun terrace accessible via the back bedroom.

Fleet Street, Wigan

£ 185,000



Fleet Street

The ultimate doer-upper, this three-bed home in Wigan has the potential to make your own mark on it.

Currently dated and in need of updating, this detached house could be a great investment for first-time buyers.



The kitchen

On two floors there is an entrance hall, a spacious living room, a fitted kitchen, a dining area, a landing, two double bedrooms, a single bedroom and a bathroom.

The house has a large garden to the rear with a patio and driveway and a garage to the front.

]]> Relief Ahead For Wyoming Housing Crisis https://trojanestate.com/relief-ahead-for-wyoming-housing-crisis/ Tue, 11 Jan 2022 03:56:00 +0000 https://trojanestate.com/relief-ahead-for-wyoming-housing-crisis/

CHEYENNE, Wyoming (Wyoming News Now) – Affordable housing is a recurring topic in Wyoming, which has become more complicated with the pandemic.

While Wyoming’s business sector has positioned itself to thrive, it is hampered by the housing shortage statewide.

In Cheyenne, Mayor Patrick Collins appointed Edward Ernste vice-chair of the affordable housing task force to alleviate some of that pressure.

One possible way, being discussed to make housing affordable, is to introduce a program similar to the out-of-state models.

This program would allow homeowners to buy their home and lease the land on which it is built to the state or city.

This method could reduce up-front costs and open up the development of single-family and multi-family buildings within a price range that people could afford.

“They could rent land to these customers and then save a lot on that initial cost. They would charge a very small rental amount for this property. I think we’re talking up to $ 30 a year to rent the property, but you still have the property taxes and everything that goes with that as an owner of that house and that would be a lot more affordable, ”said Edward Ernste. , vice-chair of the Affordable Housing Task Force.

Once the client was ready to sell the property, the equity in the home would be divided between the city and the owner.

This could bring the cost of the home down to between $ 150,000 and $ 200,000 while still gaining equity.

With Covid-19, labor shortages and supply chain delays, everything is in crisis.

“Doing something was like, what do you call that, keeping cats?” The projects that I work on that would typically take a year and a half to 2-3 years to develop take 3, 4 or 5 years to develop, ”said Ernste.

Politics is another barrier to housing beyond affordability.

“Number one, we have to figure out how to make the process easier and faster. With all government agencies, whether it’s the county or the city or whoever it is, so that we can get the builders through, ”said Dale Steenbergen, president and CEO of the Greater Cheyenne Chamber of Commerce.

Streamlining the process could help the time it would take to close the 5,000 to 7,000 housing unit gap that Wyoming needs.

“We have been pushing for a long time for a one-stop-shop, which we enter, whatever, city, government, county. You go to a place, a person, and there is someone there who stands up for you, helps you go through this process. Anything we can do to speed up this process, make it simpler, make it cheaper is important, ”Steenbergen said.

Wyoming rulers are helping find ways to get people into homes while supporting Wyoming’s growing economy.

Collective and single-family housing projects are spread throughout the city of Cheyenne.

One hundred and fifty rental units and 100 single-family homes are expected to be built by the end of 2022, and more by 2023.

Copyright 2022 Wyoming News Now. All rights reserved.

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Buffett and Shiller share concern over Indian stocks https://trojanestate.com/buffett-and-shiller-share-concern-over-indian-stocks/ Mon, 10 Jan 2022 18:16:46 +0000 https://trojanestate.com/buffett-and-shiller-share-concern-over-indian-stocks/

India’s economy is expected to grow 9.2 percent in FY22, according to the National Statistical Office (NSO) first estimate of gross domestic product (GDP) growth for the fiscal year. This figure is lower than the Reserve Bank of India’s forecast of 9.5% and indicates a slowdown in the country’s growth in the second half of fiscal year 22.

However, the Indian stock market is not disturbed. The new year has started on an upbeat note with the benchmark Nifty50 up 3.7% so far, breaking the 18,000 mark on Monday. Unsurprisingly, the valuation of the Indian stock market measured using Warren Buffett’s market cap-to-GDP ratio has exceeded its historical average. “It’s probably the best measure of where valuations are at any given time,” Buffett said. For FY 22, the reading stands at 119%, ahead of its long-term average of 79%, according to the latest data from Motilal Oswal Financial Services Ltd. This ratio is the highest in at least a decade.

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In the land of la-la

Valuations are expensive, even based on the Shiller indicator, which is the Cyclically Adjusted Price / Earnings Ratio (CAPE). It is named after Nobel Prize winning economist Robert Shiller. This is calculated by dividing the price of the general stock index by the inflation-adjusted average earnings of that index over a five-year period. A high CAPE ratio means stocks are expensive. On this metric, Indian stocks are 33.2 times overvalued, according to data provided by ICICI Securities Ltd.

The MSCI India Index trades at a one-year futures PE of around 22 times, a steep premium over the 12 times PE multiple of the MSCI Asia ex-Japan, according to Bloomberg data.

There are many downside risks, making it difficult to justify these expensive valuations. Interest rate hikes by global central banks and the end of stimulus measures are dampening sentiment. Access to cheap liquidity had boosted stock markets even during the height of the pandemic. In addition, the recent increase in covid cases is a threat. All eyes are now on corporate earnings for the December quarter (Q3FY22) of India Inc. Even here, analysts warn of a patchy recovery, especially in operating margins, as some companies are able to raise their prices faster than others. The debatable question is whether the recovery in demand in the third quarter will continue amid the uncertainty caused by Omicron causing disruption.

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Money is chasing real estate https://trojanestate.com/money-is-chasing-real-estate/ Mon, 10 Jan 2022 01:59:45 +0000 https://trojanestate.com/money-is-chasing-real-estate/

“It’s a buyer’s market!”

Covid-19 has played the role of secret Santa Claus for the real estate industry, as more people opted for larger homes and market players consolidated, easing the uncertainty and delivery delays that had away buyers. Mumbai, India’s largest residential market, recorded the highest monthly home sales in a decade in October 2021, according to real estate consultancy Knight Frank India. Hyderabad, Bengaluru and Pune also joined in the festive joy. “Covid has impressed the need for a home, a better and bigger space and more amenities, among others,” said Niranjan Hiranandani, Managing Director of the Hiranandani Group.

Forward and up

So what will prices look like in 2022? Knight Frank India expects a 5% increase. “In the previous phase, say 2011-12, the pricing power rested with the developers. It is a full buyer’s market. About 80% of open transactions are driven by end users. So the ability to pass higher prices on to developers is limited, ”says Prashant Thakur, Senior Director and Research Manager, Anarock Property Consultants.

It took years for the besieged industry to bring back buyers. Besides Covid, low interest rates, falling prices, reductions in stamp duties, and a wave of corporate discounts and programs have helped the recovery. As the second wave dampened momentum, residential sales rose 92% year-on-year to 64,010 units in the third quarter of 2021, according to Knight Frank India, beating previous average quarterly sales by 4%. the 2019 pandemic.

However, with labor costs and the prices of raw materials like steel, cement, aluminum and copper rising sharply, the discount party seems over, at least for now. “There is immense pressure on margins, and another wave could disrupt supply chains, leading to project cost overruns,” said Ashok Tyagi, full-time director and CEO of DLF. Godrej Properties plans to increase prices across the portfolio and has already undertaken low to mid-digit increases in all markets. “We want to balance expanding margins with strong sales volumes in this market,” Pirojsha Godrej, managing director of Godrej Properties, recently told investors on a call. The trajectory of prices in the residential market was “rather upward” and should experience “a more significant rise in prices”, he added.

A modest increase is unlikely to scare away buyers as the affordability quotient remains high, analysts say. “If you look at the inflation-adjusted prices, we’re somewhere in the 2005-2007 era. Affordability is at its best in 25 years, ”said Sharad Mittal, CEO of Motilal Oswal Real Estate.

Interest rate

Another measure of affordability, says Hiranandani, is that “the average price of a house, which once equaled your income over five years while receiving loans, has now fallen to three and a half years. This means that the income has increased. , but house prices have not increased proportionately. “

Part of this has to do with the industry’s hectic run over the past six years. A multitude of political and regulatory decisions have impacted sales and sentiment. Starting with demonetization, the GST, the Real Estate Regulation and Development Act [RERA], and the collapse of IL & FS, back-to-back events halted new launches as inventory piled up. The Covid-19 has dealt another blow. The recovery we are seeing now, according to Thakur, stems from the low level of 2020, which was a “calendar year of devastation.” Even now, it’s gradual and we won’t reach pre-pandemic levels until 2022-2023.

In such a scenario, low interest rates accelerated sales. In some cases, mortgage rates have even fallen to 6.5%. In between, banks, offering upgrades and graduated IMEs, and government programs, have also contributed to easier and faster access to credit for buyers.

“Growth in GDP will mean that demand for real estate will also increase, regardless of what Covid may throw at us,” Hiranandani said.

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House prices are expected to continue to rise in 2022 amid a shortage of supply https://trojanestate.com/house-prices-are-expected-to-continue-to-rise-in-2022-amid-a-shortage-of-supply/ Sun, 09 Jan 2022 18:30:37 +0000 https://trojanestate.com/house-prices-are-expected-to-continue-to-rise-in-2022-amid-a-shortage-of-supply/

Estate agents have reported that a lack of new market actions is pushing up house prices in Dublin.

According to The Sunday Times, The Dublin House Price Index predicts that house prices will increase on average by almost 6% in 2022.

The most desirable areas for those looking to buy a home are Ranelagh, Ballsbridge and Rathmines. Meanwhile, more affordable housing is currently available in Neilstown, Ballymun, Tallaght and Darndale.

Last year, the most expensive three-bedroom house was sold in Ranelagh, County Dublin, for more than a million euros. Meanwhile, the most affordable house was sold in Neilstown for € 200,000.

According to a Dublin real estate agent, there were an average of 20 to 25 offers per house.

Speaking to Newstalk, Institute of Professional Auctioneers and Appraisers CEO Pat Davitt said many offers can create challenges for agents.

“The more offers there are, the harder it is for an agent to ensure that they have qualified the purchase, so that the buyer can actually buy the property when the hammer falls,” Davitt explained. .

Earlier this month, the MyHome.ie / Davy Q4 2021 property price report detailed a record low of just 11,300 homes listed.

“Right to housing”

According to People Before Profit TD Paul Murphy, starting a state-owned construction company and stopping land hoarding are two solutions to the housing crisis.

Talk to News, Mr Murphy said major changes are needed in current policy to deal with the situation

“The whole housing crisis is completely interconnected and its root is a prioritization-based system benefiting developers, large construction companies and homeowners,” Murphy said.

“We therefore need a housing policy that is rather rooted in granting people the right to housing.

“Home prices are out of control… they are out of reach for the vast majority of people with ordinary jobs, even fairly well paying ones.

“And this is one aspect of the housing crisis that now sees more than half a million young people stuck in their family homes when they would rather be either renting or buying somewhere.”

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Protest against Enugu as Ubosi, others accused of taxation https://trojanestate.com/protest-against-enugu-as-ubosi-others-accused-of-taxation/ Sun, 09 Jan 2022 08:38:37 +0000 https://trojanestate.com/protest-against-enugu-as-ubosi-others-accused-of-taxation/

Some indigenous people in the Enugu East local government area of ​​Enugu State staged a protest against the alleged imposition of a candidate in the upcoming local elections.
The Enugu State Independent Election Commission had set February 23, 2022 for elections in the state’s 17 local government areas.





The commission revealed this in an electoral calendar released in November and signed by its chairman, Dr Mike Ajogwu.
The terms of the presidents of the state’s current local councils expired on December 5, 2021.
Grieving protesters stormed the seat of government in Enugu, insisting that they would no longer allow a single family to decide the fate of all the people.
They claimed that since the creation of the council zone, the post of president had remained in the control of a family, vowing not to let the status quo continue.
According to the Daily Post, one of the protesters, Professor Paul Nnamchi, from Eko Nike, claimed that they had come to express their displeasure at the centuries-old injustice in the Enugu East local government area.
He said that “the local government is made up of three zones and we think it is time for it to move to another zone. Since the local government was established 26 years ago, it has remained in an area and more or less a family.
“It’s time to make a move for fairness, for peace. Call the stakeholders, call everyone, it becomes consensus and not this kind of deception.
“Thus, we call upon the peaceful governor of Enugu State to ensure that peace is enthroned in local government. We are one people, Nike is not divided. We are good people, no one is better than the others.
“The governor must come to our aid; there is a need for impartiality, fairness and fair play and now is the time.
Bethrand Anike, another resident of the area, also said they had suffered a lot of humiliation and injustice in the Enugu East local government area.

He explained that the governor invited them on January 5, 2022, during which they had the opportunity to meet and choose the next chairman of the board.
He said: “Instead of stakeholders coming together for this purpose, the governor’s directive has been flouted. No one met anywhere, including the traditional rulers.
“Traditional leaders, stakeholders, young people, women, no one invited them. It is not democracy; we have a peaceful governor who has a sympathetic ear but the reverse is the case in Enugu East. But we say “No” to that kind of bullying. The governor should invite us and address this issue.
“The Speaker of the Enugu State House of Assembly, the Honorable Edward Ubosi, who is from the area came and told us a name without arguing with anyone. He told us, he told us. lied that the governor had given him, and member of the representatives, Cornelus Nnaji, the authority by virtue of their position to impose a candidate on us where we are preparing for an election. We cannot take him. “

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Markaz: Saudi real estate sector continues to recover with expectation of rebound in Kingdom GDP growth https://trojanestate.com/markaz-saudi-real-estate-sector-continues-to-recover-with-expectation-of-rebound-in-kingdom-gdp-growth/ Sat, 08 Jan 2022 07:54:12 +0000 https://trojanestate.com/markaz-saudi-real-estate-sector-continues-to-recover-with-expectation-of-rebound-in-kingdom-gdp-growth/

Kuwait: Kuwait’s financial center “Markaz” recently released its “KSA Real Estate Outlook H1 2021” report, in which it highlighted the expected GDP growth in Saudi Arabia for 2022, mainly due to price increases oil and increased production.

The report also found positive signs of stability and recovery in the Saudi real estate sector, and expects real estate prices to stabilize after a long period of decline since 2015. Government spending on housing projects Infrastructure under the Vision 2030 program is expected to stimulate non-oil GDP growth and the budget balance, which has been severely affected due to Covid-19, is expected to improve in 2021 and beyond.

Markaz’s report said investments are expected to increase as the government launches major projects like Neom City and pursues the policy of Saudization. In addition, sustained population growth, government subsidies and the adopted mortgage law allow banks to finance home purchases, fueling growth in the residential sector.

Commenting on the current real estate scene in Saudi Arabia, Mr. Bassam N. Al Othman, Managing Director of MENA Real Estate at Markaz, said: “We strongly believe that the Saudi real estate sector is recovering now and we anticipate an acceleration in pace as it continues. over the next few years, based on our expectations of favorable macroeconomic factors during this period. “

“Markaz’s analysis is based on its proprietary ‘real estate index’, which helps investors assess the real estate market. The real estate index is derived from various economic indexes, such as oil and non-oil GDP, inflation rates, increasing employment opportunities and others. We also analyzed data relating to the Saudi real estate market spanning the past seven years from which we have extrapolated our expectations for the sector. Al Othman added.

The report also states that the Saudization program may lead to an increase in employment opportunities, which is yet another positive indicator for the real estate sector. In addition, the resumption of office work and increased tourism are expected to improve overall demand for the office, commerce and hospitality sectors.

-Ends-

About Kuwait Financial Center “Markaz”

Founded in 1974, Kuwait Financial Center KPSC “Markaz” is one of the leading investment banking and asset management institutions in the MENA region with total assets under management of over KD 1.053 billion as of September 30, 2021 ($ 3.49 billion). Markaz was listed on the Kuwait Stock Exchange in 1997.

For more information, please contact:
Sondos Saad
Media & Communication Department
Kuwait Financial Center KPSC “Markaz”
Phone. : +965 2224 8000
Email: ssaad@markaz.com
www.markaz.com

© Press release 2022

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Prices in the US residential real estate market rose 19% in 2021; Is the booming US real estate market in a bubble? https://trojanestate.com/prices-in-the-us-residential-real-estate-market-rose-19-in-2021-is-the-booming-us-real-estate-market-in-a-bubble/ Sat, 08 Jan 2022 06:47:05 +0000 https://trojanestate.com/prices-in-the-us-residential-real-estate-market-rose-19-in-2021-is-the-booming-us-real-estate-market-in-a-bubble/

Since the global financial crisis, investors have been alert to the overheating US real estate market, a sign of possible problems. Prices declined in the US residential real estate market between 2006 and 2012 and have been rising steadily since.

Price growth calculated based on the annual change in the S&P CoreLogic-Shiller Home Price Index indicates that between April 2021 and October 2021, prices increased at rates of over 15%.

Between August 2020 and August 2021, prices increased by 19%. Despite regular claims that the housing market is in a bubble, data shows it is not.

Better underwriting standards

The 2006 period saw the granting of subprime loans with hook rates, nonchalant lending standards, no down payment and no documentation. However, with the episode still fresh on the minds of investors, regulators and lenders, credit standards are much stricter today.

In addition, the period was marked by overbuilding with easy credit and soaring house prices. After the crisis, prices collapsed and residential home values ​​continued to decline over the following years.

Today the situation is completely different. The housing stock in the United States is at its lowest in 40 years with under construction of residential real estate. With a construction shortage in several regions, rising prices for land and housing construction materials, the supply of new housing may be limited.

The delay between construction and occupancy can also be a factor. With regulatory constraints on construction in several areas, the supply situation may not improve for some time.

A sign of safety for anyone worried about a bubble in the housing market is the higher lending standards. For the 2020 calendar year, the borrower’s average credit score was over 780, compared to an average credit score of 707 in 2006.

Obviously, banks don’t lend to risky customers who might get them into trouble later. Previous bubble situations have seen indiscriminate lending to segments of risky borrowers who could not repay the money they owed.

Lower mortgage rates

Falling interest rates played a role in inducing demand. Analysis by JP Morgan has shown that a one-percentage-point drop in mortgage rates increases demand for real estate assets by 10 percent.

With the Fed cutting interest rates to help the country weather the pandemic, mortgage rates had fallen by about a percentage point and demand had increased by about 9%. The savings for buyers can be quite substantial even with a half percent decrease in mortgage rates, especially for the upper segment of the residential market.

With participants forced to spend more time indoors with the work-from-home regime, the move to a larger home during a period of low mortgage rates made sense. Therefore, the current housing boom in the United States is probably not a party fueled by subprime debt like past bubble periods.

Lead buying for millennials

Contrary to popular belief that millennials don’t want to own homes, the current housing push is led by millennials and baby boomers. These millennials have turned 30, when previous generations bought their first home.

According to a report by the Wall Street newspaper, the generation accounted for 67% of the first mortgage applications in the first eight months of 2021.

While the popular narrative has always concluded that millennials don’t want to own a home, the lack of demand could have stemmed from a sluggish economy after the 2008 financial crisis, when millennials were just entering the workforce.

Price growth could slow in 2022

Freddie Mac and Fannie Mae, two major lenders, expect house price rates to rise by around 7-8% since 2022. Other models even predict a drastic drop in growth rates to 2-3. %. With the Fed looking to raise interest rates, demand is expected to return to normal levels over time as mortgage payments rise significantly.

American workers saw their wages increase in 2021, but the price of housing increased at a much higher rate. Expected growth in workers’ wages is estimated at 3.9% in 2022, lower than expected house price rates.

Plus, a potential detractor of moving to bigger homes could be the end of the work-from-home trend. Even if house price growth stalls for some time, prices would still remain higher than the pre-pandemic period.

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Live News January 7: US job growth misses forecast, UK vaccine advisory group fires second recall, Citi to lay off most unvaccinated US workers by end of January https://trojanestate.com/live-news-january-7-us-job-growth-misses-forecast-uk-vaccine-advisory-group-fires-second-recall-citi-to-lay-off-most-unvaccinated-us-workers-by-end-of-january/ Fri, 07 Jan 2022 21:29:15 +0000 https://trojanestate.com/live-news-january-7-us-job-growth-misses-forecast-uk-vaccine-advisory-group-fires-second-recall-citi-to-lay-off-most-unvaccinated-us-workers-by-end-of-january/

Britain’s richest 10% own nearly half of all the country’s wealth, according to pre-pandemic data, even as inequality has remained stable for the 14 years leading up to March 2020.

A tenth of households held 43% between April 2018 and March 2020, data from the Office for National Statistics showed today, which revealed huge differences between income groups, ages and regions.

In contrast, the bottom half of the population held 9 percent. Wealth inequality as measured by the Gini coefficient, however, remained stable over the 14-year period, the ONS said.

The numbers are the most comprehensive set of data on the distribution of wealth, but exclude the period of the pandemic, when the total increased, separate data from the ONS showed.

The richest 1% of households hold more than £ 3.6million, compared to £ 15,400 or less for the bottom 10%.

There were striking differences in age, with the median wealth of those aged 55 below the statutory retirement age being around 25 times that of those aged 16 to 24.

The upper region was the South East, which has seen one of the fastest increases in average wealth since 2006. Its median wealth of £ 503,400 was about three times that of the North East, at £ 168,500. , the region with the lowest wealth. .

London has an average of £ 340,300, reflecting the lowest home ownership rate in the country, low participation in private pensions and declining median wealth in the last period. Still, he owns 15 percent of the wealth, possibly due to his higher real estate values.

The Gini coefficients, which measure inequalities, showed that London was the region with the most unequal distribution.

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Mortgage still hot https://trojanestate.com/mortgage-still-hot/ Fri, 07 Jan 2022 07:59:25 +0000 https://trojanestate.com/mortgage-still-hot/

LOS ANGELES – Fierce competition, low mortgage rates and soaring prices that pushed mortgage borrowing to record levels last year are expected to drive lending even higher this year, experts say.

Banks loaned about $ 1.61 trillion for home purchases last year, up about 9% from 2020, according to the Mortgage Bankers Association. This exceeds the $ 1.51 trillion loaned at the height of the housing bubble in 2005, the highest on record since 1990.

Lenders gave 4.74 million loans to borrowers buying homes last year, up from 4.92 million in 2020, according to the association. Despite this, the dollar value of purchase loans rose last year as home prices rose, often because homebuyers were willing to pay well above the seller’s asking price to outbid. competing offers.

“Strong demand for housing, a persistent increase in demand for housing, limited supply, rising prices – this is what led to this record level of purchase last year,” said Mike Fratantoni, chief economist of the association.

The housing market strengthened during the pandemic as many Americans switched to working from home, which put additional living space at a premium. Steady job growth, a stock market at record highs, rising rents and expectations for higher mortgage rates have also boosted homebuyers, although soaring prices and a historically low supply of low-cost homes. selling have excluded many others.

Median U.S. home prices in October were nearly 20% higher than a year earlier, according to the most recent S&P CoreLogic Case-Shiller Home Price Index.

The housing market is expected to continue to sizzle this year, which is why the association predicts the dollar value of home purchase loans to hit a new high of $ 1.74 trillion.

While inventory for sale may end up being a bit better than in 2021 as home builders build more homes, that still won’t be enough to give buyers the upper hand, Fratantoni said.

“2022 is always going to be a sellers market,” he said. “There is more demand than supply, which is why we are very confident that prices will continue to rise.”

LESS PURCHASING POWER

Meanwhile, home buyers will likely have less purchasing power this year to deal with rising home prices.

The extraordinarily low mortgage rates that have helped boost demand from the housing market are expected to continue to rise in 2022 as the Federal Reserve phased out the monthly bond purchases it has made since the early days of the pandemic. The central bank has already signaled that it plans to start raising interest rates as early as this spring to curb the sharp rise in inflation.

The average 30-year fixed-rate benchmark mortgage rate remained around 3% in 2021. The association’s forecasts predict that the average rate will drop to 4% this year.

This is close to the forecasts of other housing economists. The National Association of Realtors predicts that the average rate will rise to 3.7% by the end of this year. Greg McBride, chief financial analyst at Bankrate, predicts rates will peak at 4% but end the year at 3.5%.

“It’s going to be a bit of a roller coaster ride,” McBride said. “The higher rates we expect in 2022 will not take the real estate market’s breath away, but it will significantly change the refinancing equation.”

Homeowners borrowed some $ 2.32 trillion in 2021 to refinance their mortgages, down about 12% from 2020, when refinancing hit an all-time high, according to the Mortgage Bankers Association. In total, mortgage refinancing in 2021 and 2020 amounted to nearly $ 5,000 billion.

The association predicts that mortgage refinancing will fall to $ 870 billion this year, the lowest since 2018’s $ 467 billion.

LAST MORTGAGE RATES

According to the latest data released Thursday by Freddie Mac, the 30-year fixed rate average climbed to 3.22% this week. It was 3.11% a week ago and a record 2.65% a year ago. This is the highest 30-year fixed average since May 2020.

Freddie Mac, the federally chartered mortgage investor, aggregates the rates of about 80 lenders across the country to establish weekly national averages.

The 15-year fixed rate average stands at 2.43% with an average of 0.6 point. It was 2.33% a week ago and 2.16% a year ago. The average of the five-year revisable rates remained at 2.41% with an average of 0.5 point. It was 2.75% a year ago.

“With little economic data during a slow holiday week, markets appear to be forecasting continued economic recovery, despite the spike in covid cases due to the omicron variant,” said Paul Thomas, vice president of markets of Zillow Capital. “Most indicators continue to point to inflationary pressures, with tight labor markets and challenges in resolving supply chain issues.”

When the Federal Reserve released the minutes of its December meeting this week, it made waves in financial markets. Shares fell after the Fed signaled it could be more assertive by pulling back its bond purchases, raising interest rates and selling its balance sheet over the next several months.

Officials said high inflation and a tight labor market could prompt them to raise the benchmark rate “earlier or at a faster rate than participants anticipated,” according to the minutes. Although the Fed does not set mortgage rates, its decisions can influence them.

Information for this article was provided by Alex Veiga of The Associated Press and Kathy Orton of the Washington Post.

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