Market Studies

In keeping with historical seasonal trends, housing inventory and median list price per square foot both declined over the month of December. At the same time, annual changes remained in line with previous years, according to Movoto Real Estate's State of the Market report released Tuesday. The California-based online real estate broker said there were """"no surprises"""" in the December numbers.

Consumer sentiment toward housing showed marked improvement over the course of 2013, ending the year on a high note, according to Fannie Mae. The GSE found that less than half of those polled expect home prices to increase over the next year, in line with trends pointing to a more measured and sustainable recovery. Overall, consumers were optimistic about their chances of obtaining financing and undeterred by rising interest rates.

Borrowers earning at least $100,000 per year are more likely to use the Internet when shopping for a home, while those making less than $50,000 rely more on agents, lenders, and advice from family and friends when making borrowing decisions, according to recently released survey results from Fannie Mae. However, all income groups said they would like to make greater use of available online tools than they currently do.

While the S&P/Case-Shiller Home Price Indices for October showed a 13.6 percent year-over-year leap, other measures are seeing more subdued gains. Lender Processing Services' index put prices in October 8.2 percent higher than they were at the start of 2013. Similarly, Zillow says home values are up only 7.1 percent from last year and appreciation rates should slow even further over the next 12 months.

Mortgage rates began 2014 with a round of increases, kicking off a trend many experts believe will continue through the rest of the year. Freddie Mac's weekly survey shows the 30-year fixed-rate mortgage up five basis points to an average of 4.53 percent for the week ending January 2. Bankrate reported similar results, with the 30-year rate up six basis points to 4.69 percent.

Both the 10- and 20-city composite readings of the S&P/Case-Shiller Home Price Indices saw annual increases of 13.6 percent during the month of October, recording their largest yearly gain since February 2006. October marked the 17th consecutive month home prices have risen on a year-over-year basis, with average home prices nationwide recovering to mid-2004 levels.

As the recovery quickens pace, home inspection franchise business has increased in Alabama. The WIN Home Inspection franchise has seen its revenue grow 35 percent in the past two years as the franchise grabs an outsized slice of the recovering real estate market.

In the Bay State, single-family home sales dropped 2 percent in November--the first time year-over-year sales dropped since April, according to the latest report by The Warren Group. For the first time since April, homes sales posted a decrease and the fewest number of sales recorded for a month.

Analysts at HomeVestors and Local Market Monitor say the formula for a nearly risk-free single-family investment opportunity is one part job growth and one part population growth, mixed with relatively low home prices. The fourth quarter report put out jointly by the two companies aggregates the 10 best and worst major markets for investing in single-family homes as rentals.

In 1998, the top 10 mortgage lenders held around 40 percent of the market. By 2010, their share increased to nearly 80 percent; since then, it's dropped down to around 60 percent. Why the decrease? Because only five of the top 20 single-family mortgage originators in 2006 remain active today. So what's driving the big guys out--market cycles or market restructuring? And will the current trend of favoring smaller lenders and servicers last forever?