Incentives Remain for Private Investors in Housing

first_imgSubscribe Related Articles April 12, 2016 1,310 Views As housing is inches closer to fair value due to rising home prices and distressed properties for sale continue to decline, private investors are finding it harder to find bargains in the market.A U.S. housing market update from Capital Economics by Property Economist, Matthew Pointon, showed that although there are a few roadblocks on their path, private investor demand is not likely to dry up anytime soon.”With returns on other types of assets looking low and/or risky, expectations for further gains in house prices suggest Americans will continue to see housing as a good place to store wealth,” Pointon wrote.In the midst of tight supply, heightened competition for buyers, and unpredictable financial markets, U.S. home prices continued to rise in the fourth quarter.The Federal Housing Finance Agency’s (FHFA) House Price Index (HPI) shows that home prices rose 5.8 percent year-over-year in the fourth quarter of 2015. Prices increased 1.4 percent from the third quarter of 2015, marking the 18 consecutive quarterly price increase in the purchase-only, seasonally adjusted index. Home prices were up 0.4 percent month-over-month for December.“Instability in financial markets did not seem to put much of a drag on home prices in the fourth quarter,” said Andrew Leventis, FHFA Supervisory Economist. The 1.4 percent rise in home prices “was in line with the extremely steady—but historically elevated— appreciation rates we have been observing for several years now.”Capital Economics posed the question if the continued rise in prices will cause investors to withdraw from the market, potentially leading to a drop in housing demand if others—like first-time buyers—do not take up the slack. However, Pointon stated, “Private investors have proved a stable source of housing demand over in recent years.””Private investors are typically on the look-out for bargains they can buy with cash. But with housing now at fair value, good deals are becoming harder to find. In particular, the rise in house prices, low mortgage rates and improving labor market have all helped to bring mortgage delinquencies down to pre-crisis levels,” Pointon said. “As such, the share of homes bought for investment and vacation purposes that were distressed dropped in 2015 compared to 2014.”Capital Economics said that it not likely that the lack of distressed properties will fend off investors. “While bargains may be harder to find, the fact remains that house prices are expected to keep on rising. Even if the home is not rented out, buyers will be expecting a decent capital gain,” the report said.”We don’t see a collapse in private investor demand as a significant risk for the housing market. Rather, a slow recovery in first-time buyer numbers will complement second home buyers, and ensure that housing demand weathers the coming gradual rise in mortgage rates,” Pointon concluded. About Author: Xhevrije West Incentives Remain for Private Investors in Housing Data Provider Black Knight to Acquire Top of Mind 2 days ago Xhevrije West is a talented writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University. Previous: Is Government’s Defense in Fairholme Suit Valid? Next: DS News Webcast: Wednesday 4/13/2016 Tagged with: Capital Economics Housing Market Private Investors  Print This Post Share Save in Daily Dose, Featured, Market Studies, News Servicers Navigate the Post-Pandemic World 2 days agocenter_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Capital Economics Housing Market Private Investors 2016-04-12 Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Incentives Remain for Private Investors in Housing Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

People on the move

first_img Previous Article Next Article Jim Hare has been appointed HR director of pensions and life assurance specialist Winterthur Life. Hare’s goal in the post is to create a culture of open communications across the company. He will work closely with Winterthur CEO and chairman John Finnan to develop a new HR strategy to support new business initiatives.Hare worked in a variety of HR management roles for Honeywell Control Systems covering the UK and Northern Europe. Before that he worked in Scotland as a training officer for Denholm Ship Management. Mark Browning has been appointed executive development manager at transport services organisation Arriva, where he will ensure the group’s management is equipped with the necessary skills for the group to achieve its strategic objectives.Browning previously worked in Arriva’s London operations as manager of the Tottenham and Clapham bus depots, responsible for more than 1,000 staff.He will assist in the development of the group’s executive management throughout all divisions, including bus and rail operations in the UK and Europe and its motor network operations in the UK. Browning will also help identify and develop management talent in Arriva. Lea Toal has been appointed head of professional resourcing at UK law firm Pinsent Curtis, to coordinate and manage its legal and senior executive recruitment.Toal joins from KPMG’s executive search and selection division, where she was responsible for national legal recruitment. She will be the firm’s main interface with external recruitment advisers and will work closely with national managing partner David Ryan on strategic recruitment projects.Toal will work alongside HR director Kate Parr on streamlining the firm’s recruitment and raising awareness externally of opportunities within Pinsent Curtis. Paul Harborne has joined the Imhotep Consultancy, the specialist change management advisers to the insurance and financial services industry. At Imhotep he will apply academic research into the convergence of new technology and product developmentHe was formerly at BT, where he was instrumental in the implementing a number of strategic change initiatives, including the company’s Y2K programme. Russell Goodenough has been appointed HR director with process and control systems specialist ABB Automation. Goodenough joined in late October from Allied Signal/Honeywell International in Ireland, where he was European HR director. People on the moveOn 7 Nov 2000 in Personnel Today Comments are closed. Related posts:No related photos.last_img read more

Afcon 2017: Leicester’s Jeff Schlupp is left out of Ghana’s squad

first_imgGhana coach Avram Grant named a provisional 26-man squad for the Africa Cup of Nations in Gabon on Monday, with Leicester City’s Jeff Schlupp a surprise omission.Schlupp’s Leicester team-mate Daniel Amartey was included as was another English Premier League player, Andre ‘Dede’ Ayew of West Ham.Aston Villa’s Jordan Ayew – Andre’s brother – was one of three English Championship players named, alongside Christian Atsu of Newcastle and Andy Diadom of Barnsley.There was no place for Juventus midfielder Kwadwo Asamoah who was struggling to make the cut following a series of knee injuries.The Black Stars will now go to the United Arab Emirates for a training camp from where Grant will reveal his final squad of 23 by the 4 January deadline.The tournament kicks off in Gabon on 14 January. Ghana will be based in Port-Gentil where they will face Mali, Egypt and Uganda in Group D.The Black Stars’ first match will be against Uganda on 17 January.last_img read more