By Kerry Smith The spring season will likely draw sellers and buyers to the market, but after that, U.S. metros will probably go different directions for buyers’ and sellers’ markets. NEW YORK – As the reality of higher home prices and mortgage rates sets in, U.S. homebuyers will likely gain some leverage in 2023. But it depends on where they live. The Knock Buyer-Seller Market Index 2023 forecast finds a clear divide between the best markets for buyers versus sellers. The Index analyzes key housing market metrics to measure the degree to which the nation’s 100 largest markets favor homebuyers
Read More

By Christopher Rugaber In testimony before Congress Tuesday, Fed Chair Powell said the economy is “stronger than expected” and the “ultimate level of interest rates is likely to be higher.” WASHINGTON (AP) – The Federal Reserve could increase the size of its interest rate hikes and raise borrowing costs to higher levels than previously projected if evidence continues to point to a robust economy and persistently high inflation, Chair Jerome Powell told a Senate panel Tuesday. “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher
Read More

By Richard Halstead A Black couple whose home appraisal rose after removing signs of Black ownership settled out of court for “an undisclosed monetary amount with additional terms.” MARIN CITY, Calif. – A Marin City couple who sued a real estate appraiser over alleged racial discrimination has reached an out-of-court settlement. Paul Austin and his wife, Tenisha Tate-Austin, sued appraiser Janette Miller and Miller and Perotti Real Estate Appraisals in San Rafael. They also sued AMC Links LLC, an appraisal management company in Utah. The suits were filed in 2021. The Austins alleged that the defendants supplied them with an
Read More

By Kerry Smith Fla. is still a home-value exception: The share of U.S. homes worth $1M-plus fell from 8.6% to 7% as of Jan., but it’s gone up in most Fla. metros. SEATTLE – Just over 7% of U.S. homes were worth $1 million or more in January 2023, according to a report from Redfin, which is a decline from June 2022’s all-time high of 8.6% and essentially unchanged from a year earlier. Still, the share of luxury homes is up from 4.2% just before the pandemic began. Home values and prices have dropped from record highs as 6.5%-plus mortgage
Read More

The pandemic cut the number of foreign buyers traveling to the U.S., but the first wave is reappearing. A Miami condo has seen a 30% increase in Brazilian buyers. NEW YORK – Real estate insiders say they’ve seen a resurgence in foreign buyers to the U.S. market after the pandemic made them virtually nonexistent. Levels of international interest have reverted to near-pre-pandemic levels in the last three months alone, thanks to a lifting of COVID restrictions worldwide plus global political-economic shifts, notably the Russia-Ukraine war and Brazil’s turbulent presidential elections. “It was the domestic buyer that led the recovery out
Read More

By Elise Haas A scam converts Airbnb listings into discounted “Home for sale” ads targeting first-time buyers. If a buyer asks to tour the home, the scammer rents it for a day to do so. PORTLAND, Ore. – Airbnb hosts in Oregon are warning of a new scam, saying that some guests could be using local Airbnb properties to take advantage of first-time homebuyers. “I never realized that there could be any fraud scheme that would represent a home for sale,” said Melissa, a new host on Airbnb who is renting her home in Northeast Portland to travelers. “I received
Read More

By Christopher Rugaber Recent economic reports suggest inflation isn’t yet under control, and the Fed says it may have to increase interest rates more than it expected a few weeks ago. WASHINGTON (AP) – A run of strong economic data and signs that inflation remains stubbornly high could lead the Federal Reserve to raise its benchmark rate higher in the coming months than it has previously forecast, several Fed officials say. On Thursday, Christopher Waller, a member of the Fed’s influential Board of Governors, said that if the economy continued to show strength and inflation remained elevated, the central bank
Read More

The S&P CoreLogic Case-Shiller index showed a 5.8% annual gain in home prices for Dec., down from 7.6% through the 12-month period ending in Nov. NEW YORK – The prospects for a weakening U.S. economy and higher interest rates suggest that the average price increase for a home is likely to continue to slow after six straight months of declines, data from S&P showed last week. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index showed a 5.8% annual gain in home prices for December, down from the 7.6% increase through the 12-month period ending in November. Among the
Read More

By Kerry Smith Residents of communities that require hurricane-resistant homes get a break on the cost of flood ins., but does it lower FEMA’s overall costs? A study says yes. WASHINGTON – The Federal Emergency Management Agency’s (FEMA) Community Rating System (CRS) provides financial incentives to communities that mitigate against storm damage, essentially, “We’ll charge you less for flood insurance if you agree to make building changes designed to minimize costs after a storm.” But does FEMA’s lost revenue from policies cost less than the money saved by fewer claims following a flood disaster? A new study suggests that it
Read More

By Matt Ott Investors expect the Fed to raise interest rates soon, and this week’s increase in the 30-year, fixed-rate mortgage reflects that. Last week it was 6.5%. WASHINGTON – The average long-term U.S. mortgage rate hit a three-month high this week, reflecting higher Treasury yields and expectations that the Federal Reserve will continue to raise its benchmark rate and keep it there until inflation recedes. Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate rose to 6.65% from 6.5% last week. The average rate a year ago was 3.76%. The average long-term rate reached
Read More