Are honeymoons on the out? Many newlyweds are asking for a downpayment contribution instead of gifts, and some are opting for a smaller gathering and saving for a downpayment over paying for a wedding. Just how much does a wedding cost? The average cost for a wedding at the beginning of 2017 was almost $26K, according to one survey. That’s more than a downpayment for many homebuyers, especially considering today’s many low-down options first-time homebuyers are taking advantage of.
Nonbank lenders have increased rapidly over the years and by 2025, 5.2M homeowners are expected to hit the market, dominated mostly by millennials (and likely those newlyweds).
Pending Home Sales fell 0.8% in July, also missing expectations. And we’re going to sound like a broken record player here because it’s not a demand issue—the demand is most definitely there—it’s an inventory issue.
Looking locally at Washtenaw County, Ypsilanti is the only area where sale prices dropped annually in July.
Detroit and Grand Rapids hit the list for “America’s 20 Hottest Real Estate Markets for August 2017.” Detroit moved up to the No. 4 spot. Lots of growth to be had in Michigan’s comeback city.
Home prices continued to accelerate in June, as reported with the Case-Shiller Home Price Index and with a 5.8% annual gain. Detroit reported a 7.6% annual gain but Seattle saw the strongest gains with 13.4%. Wow.
Mortgage Applications for last week dropped 2.3% overall, with the Purchase index down 3% and the Refinance Index down 2%.
The ADP Employment Report released earlier in the week showed 237K jobs created in August, which greatly surpassed expectations of only 185K. This very strong report should have pointed to a strong Bureau of Labor Statistics Jobs Report but that is just not what this morning’s report showed. Only 156K jobs were created in August, missing expectations of 180K, and the unemployment rate ticked up slightly to 4.4%.
Last week reported 236K Initial Jobless Claims.