Market Update

QUOTE OF THE WEEK... "Procrastination is the art of keeping up with yesterday." --Don Marquis, American humorist, journalist, and author

INFO THAT HITS US WHERE WE LIVE ... Well, the rate of home price appreciation isn't quite keeping up with yesterday, but it's still doing OK. A major real estate data and analytics provider reports a 6.3% year-over-year rise in home prices as of December. Though this rate should slow, they still expect to see home prices up 5.4%, year-over-year, at the end of 2016. "However, local market growth can vary substantially," their chief economist noted. But even with price gains, homes remain more affordable than in the pre-bubble years, according to another data firm, who reported that it takes just 21% of the national median income to pay the mortgage on a median priced home.

That's 20% less than the average 26% payment-to-income ratio in 2000-2002, and way less than the 33% ratio seen at the top of the market. A third data firm reports cash sales made up 33.9% of home sales in October 2015, versus 36.4% the year before. Cash sales peaked in January 2011, at 46.6% of all home sales, but averaged about 25% before the crisis. If cash sales keep falling at the current rate, we'll hit 25% again by the middle of 2018. Appraisal volume was up 8.3% for the week of January 24, according to a forms software company. Their director of analytics feels, "with stable rates and good employment numbers, things are good for a stable housing market to continue."

BUSINESS TIP OF THE WEEK... Don't let rejection slow you down. Rejection in business is rarely personal, or a critique of your ability. It's just a difference of opinion. Always have opportunities in reserve, so when rejection comes, you can graciously move on.