7.3 HRSR 01-04-2016 - Laserfiche WebLink

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CHALLENGES AND OPPORTUNITIES Lender-mediated Properties. As illustrated in Table FS-1, lender-mediated properties have declined substantially since the housing downturn and Great Rece Lender mediated properties (i.e. foreclosures and short sales) a transactions between 2009 and 2011 before declining annually since and comprising a 12% of transactions thus far in 2015. The continued decline in l-mediated properties will enhance the overall real estate market and pricing will con losses of last decade. The median sales price is still down about 10% real estate market; hence some homeowners are still upside down more and more homeowners regain lost equity, the real estate marce strong velocity as many owners desire trade-up housing. Lot Supply. Tables FS-9 and FS-10 inventoried active subdivisions with available lots. Based on our research there are under than 200 finished vacant single-family lots, not included scattered lots throughout the city. Based on this lot supply and the rece activity over the past few years, the current finished lot inventory is very low and is less than three years. Therefore, future lots will be needed to be cd lots to meet this demand. Because of the time frame to deliver lots (i. infrastructure, etc.) new platted lots should begin in 2016 to e ample to support new construction throughout this decade. Mortgage Rates. Mortgage rates play a crucial part in housing affordability. Lo mortgage rates result in a lower monthly mortgage payment and bu home for their dollar. Rising interest rates often require home payment in order to maintain the same housing costs. Mortgage ra historic lows over the past several years coming out of the Grea Federal Reserve has indicated they may begin raising the Federals December 2015 and into 2016 that would result in an increase in interest the rate hike has increased buyer activity in 2015 as buyers are hoping to avoid rate increases. The anticipated increases are projected to be small; although affordability will be affected most economists do not a the short-term. Low mortgage rates have been critical for the housing reco in a market like Elk River that was affected by significant lender-mediated properties. A significant increase in rates (+1% or more; over 5% in the short the housing market and would slow projected housing demand. The following chart illustrates historical mortgage rate averages as compiled by Freddie Mac. The Freddie Mac Market Survey (PMMS) has been tracking mor and is the most relied upon benchmark for evaluating mortgage in The Freddie Mac survey is based on 30-year mortgages with a loan-to-value of 80%. 113 MAXFIELD RESEARCH & CONSULTING, LLC