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Real Estate Blog
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Tuesday, May 17 2011
WASHINGTON (May 10, 2011)—Existing-home sales continued to recover in the first quarter, with gains recorded in 49 states and the District of Columbia, while 22% of the available metropolitan areas saw prices rise from a year ago, according to the latest survey by the NATIONAL ASSOCIATION OF REALTORS®.
Total state existing-home sales, including single-family and condo, rose 8.3% to a seasonally adjusted annual rate of 5.14 million in the first quarter from 4.75 million in the fourth quarter, and are only 0.8% below a 5.18 million pace during the same period in 2010.
Also in the first quarter, the median existing single-family home price rose in 34 out of 153 metropolitan statistical areas from the first quarter of 2010, including four with double-digit increases; one was unchanged and 118 areas showed price declines.
Home prices are all over the map, said NAR Chief Economist Lawrence Yun. “The reading of quarterly price data can be volatile because they are based on the types of homes that are sold during the quarter. When buyers principally purchase distressed properties in a given market, the recorded prices will be very low, which is what we’re seeing now in much of the country,” he said. “Annual price data provides a better guide about the direction of the market in those areas.”
National median home price
The national median existing single-family home price was $158,700 in the first quarter, down 4.6% from $166,400 in the first quarter of 2010. The median is where half sold for more and half sold for less. Distressed homes, typically sold at a discount of about 20%, accounted for 39% of first quarter sales, up from 36% a year earlier.
“The biggest sales increase has been in the lower price ranges, which are popular with investors and cash buyers,” Yun said. “The preponderance of sales activity at the lower end is bringing down the median price, so what we’re seeing is the result of a change in the composition of home sales.”
The volume of homes sold for $100,000 or less in the first quarter was 8.9% higher than the first quarter of 2010, creating a downward skew on the overall median price. The share of all-cash home purchases rose to 33% in the first quarter from 27% in the first quarter of 2010.
Investors accounted for 21% of first quarter transactions, up from 18% a year ago, while first-time buyers purchased 32% of homes, down from 42% in the first quarter of 2010 when a tax credit was in place. Repeat buyers accounted for a 47% market share in the first quarter, up from 40% a year earlier.
NAR President Ron Phipps said strong sales of distressed homes are exactly what the market needs. “The good news is foreclosures, which account for two-thirds of all distressed homes sold, are selling very quickly,” he said. “Short sales still take far too long to get lender approval, but it appears the inventory of distressed property is peaking and will be gradually declining next year. This means the market should slowly return to balance. We are encouraged that recent home buyers are having exceptionally low default rates.”
Condo sales
In the condo sector, metro area condominium and cooperative prices—covering changes in 53 metro areas—showed the national median existing-condo price was $152,900 in the first quarter, down 10.4% from the first quarter of 2010. Eleven metros showed increases in the median condo price from a year ago, one was unchanged, and 41 areas had declines.
Regional home sales
Regionally, existing-home sales in the Northeast increased 0.8% in the first quarter to a level of 800,000 but are 7.3% below the first quarter of 2010. The median existing single-family home price in the Northeast declined 5.0% to $234,100 in the first quarter from a year ago.
Existing-home sales in the Midwest rose 7.9% in the first quarter to a pace of 1.09 million but are 5.0% below a year ago. The median existing single-family home price in the Midwest fell 5.3% to $124,400 in the first quarter from the same period in 2010.
In the South, existing-home sales increased 8.5% in the first quarter to an annual rate of 1.96 million and are 2.8% higher than the first quarter of 2010. The median existing single-family home price in the South slipped 0.6% to $141,800 in the first quarter from a year earlier.
Existing-home sales in the West jumped 13.5% in the first quarter to a level of 1.29 million and are 2.1% above a year ago. The median existing single-family home price in the West fell 4.7% to $197,400 in the first quarter from the first quarter of 2010.
Source: NAR
Read more: http://www.houselogic.com/news/articles/existing-home-sales-rise-most-states-first-quarter/#ixzz1M4ODTTvU
Thursday, April 28 2011
Yesterday we reported on an article on the rise in the new home construction industry. Today we can report that there is also a rise in the sale of existing homes. According to the National Association of Realtors existing-home sales rose in March, continuing an uneven recovery that began after sales bottomed last July. This in itself is a good indication that barring any unforeseen mishaps with the economy, we should continue to see increases in the sales of homes. -RT
Existing-home sales rose in March, continuing an uneven recovery that began after sales bottomed last July, according to the NATIONAL ASSOCIATION OF REALTORS®.
Existing-home sales, including single-family, townhomes, condominiums, and co-ops, increased 3.7% to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3% below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit.
The improving sales pattern is likely to continue, said NAR Chief Economist Lawrence Yun. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain—primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percentage of income have been at record lows.”
NAR’s housing affordability index shows the typical monthly mortgage principal and interest payment for the purchase of a median-priced existing home is only 13% of gross household income, the lowest since records began in 1970.
Mortgages harder to get
Data from Freddie Mac and Fannie Mae show requirements to obtain conventional mortgages have been tightened, with the average credit score rising to about 760 in the current market from nearly 720 in 2007; for FHA loans the average credit score is around 700, up from just over 630 in 2007.
“Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago—before the loose lending practices that created the unprecedented boom-and-bust cycle,” Yun explained.
“Given that FHA and VA government-backed loan programs turned a modest profit over to the U.S. Treasury last year, and have never required a taxpayer bailout, we believe low-downpayment loans should continue to be available for those consumers who have demonstrated financial responsibility and are willing to stay well within their budget. Raising the downpayment requirement would unnecessarily deny credit to many worthy middle-class families and veterans,” Yun said.
Who is buying homes?
A parallel NAR survey shows first-time buyers purchased 33% of homes in March, compared with 34% of homes in February; they were 44% in March 2010.
All-cash sales were at a record market share of 35% in March, up from 33% in February; they were 27% in March 2010. Investors accounted for 22% of sales activity in March, up from 19% in February; they were 19% in March 2010. The balance of sales were to repeat buyers.
Housing inventory up slightly
Total housing inventory at the end of March rose 1.5% to 3.55 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, compared with a 8.5-month supply in February.
Single-family home sales up
Single-family home sales rose 4.0% to a seasonally adjusted annual rate of 4.45 million in March from 4.28 million in February, but are 6.5% below the 4.76 million level in March 2010. The median existing single-family home price was $160,500 in March, down 5.3% from a year ago.
Condo sales rise
Existing condominium and co-op sales increased 1.6% to a seasonally adjusted annual rate of 650,000 in March from 640,000 in February, but are 4.1% below the 678,000-unit pace one year ago. The median existing condo price was $153,100 in March, which is 10.1% below March 2010.
Regional home sales mixed
Regionally, existing-home sales in the Northeast rose 3.9% to an annual level of 800,000 in March but are 12.1% below March 2010. The median price in the Northeast was $232,900, down 3.0% from a year ago.
Existing-home sales in the Midwest increased 1.0% in March to a pace of 1.06 million but are 13.1% lower than a year ago. The median price in the Midwest was $126,100, which is 7.1% below March 2010.
In the South, existing-home sales rose 8.2% to an annual level of 1.99 million in March but are 1.0% below March 2010. The median price in the South was $138,200, down 6.6% from a year ago.
Existing-home sales in the West slipped 0.8% to an annual pace of 1.25 million in March and are 3.1% below a year ago. The median price in the West was $192,100, which is 11.2% lower than March 2010.
Source: NAR
Read more: http://www.houselogic.com/news/articles/existing-home-sales-rise-march/#ixzz1K6DhhWj1
Thursday, October 28 2010
Existing-home sales rose again in September, affirming that a sales recovery has begun, according to the National Association of Realtors®.
Sales of existing single-family, townhomes, condominiums, and co-ops jumped 10.0% to a seasonally adjusted annual rate of 4.53 million in September from a downwardly revised 4.12 million in August, but remain 19.1% below the 5.60 million-unit pace in September 2009 when first-time buyers were ramping up in advance of the initial deadline for the tax credit last November.
The housing market is in the early stages of recovery, said NAR chief economist Lawrence Yun.
“A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions,” he said.
The national median existing-home price for all housing types was $171,700 in September, which is 2.4% below a year ago. Distressed homes accounted for 35% of sales in September compared with 34% in August; they were 29% in September 2009.
Opportunities abound in the current market, said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “A decade ago, mortgage rates were almost double what they are today, and they’re about one-and-a-half percentage points lower than the peak of the housing boom in 2005,” she said. “In addition, home prices are running about 22% less than five years ago when they were bid up by the biggest housing rush on record.”
To illustrate the jump in housing affordability, the median monthly mortgage payment for a recently purchased home is several hundred dollars less than it was five years ago. “In fact, the median monthly mortgage payment in many areas is less than people are paying for rent,” Golder said.
Housing affordability conditions today are 60 percentage points higher than during the housing boom, so it has become a very strong buyers’ market, especially for families with long-term plans. “The savings today’s buyers are receiving are not a one-time benefit. Buyers with fixed-rate mortgages will save money every year they are living in their home—this is truly an example of how home ownership builds wealth over the long term,” Golder added.
Home inventory falling
Total housing inventory at the end of September fell 1.9% to 4.04 million existing homes available for sale, which represents a 10.7-month supply4 at the current sales pace, down from a 12.0-month supply in August. Raw unsold inventory is 11.7% below the record of 4.58 million in July 2008.
“Vacant homes and homes where mortgages have not been paid for an extended number of months need to be cleared from the market as quickly as possible, with a new set of buyers helping the recovery along a healthy path,” Yun said. “Inventory remains elevated and continues to favor buyers over sellers. A normal seasonal decline in inventory is expected through the upcoming months.”
One-third of homes sold to first-time buyers
A parallel NAR practitioner survey shows first-time buyers purchased 32% of homes in September, almost unchanged from 31% in August. Investors were at an 18% market share in September, down from 21% in August. The balance of purchases were by repeat buyers. All-cash sales were at 29% in September compared with 28% in August.
Single-family home sales rise
Single-family home sales increased 10% to a seasonally adjusted annual rate of 3.97 million in September from a pace of 3.61 million in August, but are 19.5% below the 4.93 million level in September 2009. The median existing single-family home price was $172,600 in September, down 1.9% from a year ago.
Condo and co-op sales up
Existing condominium and co-op sales rose 9.8% to a seasonally adjusted annual rate of 560,000 in September from 510,000 in August, but are 16.2% lower than the 668,000-unit level one year ago. The median existing condo price was $165,400 in September, down 6.2% from September 2009.
Regional home sales
Regionally, existing-home sales in the Northeast increased 10.1% to an annual pace of 760,000 in September but are 20.8% below September 2009. The median price in the Northeast was $239,200, which is 1.4% below a year ago.
Existing-home sales in the Midwest jumped 14.5% in September to a level of 950,000 but are 26.4% below a year ago. The median price in the Midwest was $139,700, down 5.2% from September 2009.
In the South, existing-home sales rose 10.6% to an annual pace of 1.77 million in September but are 14.9% lower than September 2009. The median price in the South was $149,500, down 2.6% from a year ago.
Existing-home sales in the West increased 5.0% to an annual level of 1.05 million in September but are 16.7% below a year ago. The median price in the West was $213,600, which is 4.9% lower than September 2009.
Read more: http://www.houselogic.com/news/articles/september-existing-home-sales-show-another-strong-gain/#ixzz13gJDJl7u
Monday, August 02 2010
The real estate market here in Evansville Indiana does not always follow the national trend. We are in a fortunate situation that our market is sheltered and we do not have the extreme ups and downs as in other markets. However, the trend that: “Demand Strong for Well-Prices Homes” does apply to our local market. Homes that have been updated and are in move-in condition and that are priced right, will sell faster.
Demand Strong for Well-Prices Homes
Yes, houses will sell as long as they are priced right. In many — but not all places — that means they’re priced low.
"People who price their homes to the market are selling them in a reasonable amount of time, but people who cling to 2004 or 2005 prices aren't," says Richard Smith, president and CEO of Realogy, the parent company of Century 21, ERA, Coldwell Banker and Sotheby's International Realty.
In some areas, pent-up demand has exploded. "It's crazy," says Brendon DeSimone, an associate with Paragon Real Estate in the Noe Valley near San Francisco. "I had one house with five offers, and it went from $1.4 million to $1.7 million. The valley has just popped. It's not uncommon for one open house to have 200 people come through."
Source: USA Today, Stephanie Armour (07/28/2010)
http://www.realtor.org/rmodaily.nsf/pages/News2010073003
Friday, July 23 2010
Sales Slow but Remain Above Last Year
With the scheduled closing deadline for the home buyer tax credits, existing-home sales slowed in June but remained at relatively elevated levels, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million units in June from 5.66 million in May, but are 9.8 percent higher than the 4.89 million-unit pace in June 2009.
Lawrence Yun, NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said. “Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.74 percent in June from 4.89 percent in May; the rate was 5.42 percent in June 2009.
The national median existing-home price for all housing types was $183,700 in June, which is 1.0 percent higher than a year ago. Distressed homes were at 32 percent of sales last month, compared with 31 percent in May; it was also 31 percent in June 2009.
NAR President Vicki Cox Golder said softer home sales expected this summer don’t tell the whole story. “Despite these market swings, total annual home sales are rising above 2009 and we’re looking for overall gains again this year as well as in 2011,” she said. “Conditions have become more balanced in much of the country, which is good for both buyers and sellers. However, consumers find it even more challenging to navigate the transaction process, especially for distressed properties, which only underscores the value REALTORS® bring to buyers and sellers in this market.”
A parallel NAR practitioner survey shows first-time buyers purchased 43 percent of homes in June, down from 46 percent in May. Investors accounted for 13 percent of sales in June, little changed from 14 percent in May; the remaining purchases were by repeat buyers. All-cash sales were at 24 percent in June compared with 25 percent in May.
Total housing inventory at the end of June rose 2.5 percent to 3.99 million existing homes available for sale, which represents an 8.9-month supply at the current sales pace, up from an 8.3-month supply in May.
“The supply of homes on the market is higher than we’d like to see. But home prices are still holding their ground because prices had already overcorrected in many local markets,” Yun said. Raw unsold inventory remains 12.7 percent below the record of 4.58 million in July 2008.
Single-family home sales fell 5.6 percent to a seasonally adjusted annual rate of 4.70 million in June from a level of 4.98 million in May, but are 8.5 percent above the 4.33 million pace in June 2009. The median existing single-family home price was $184,200 in June, up 1.3 percent from a year ago.
Single-family median existing-home prices were higher in 10 out of 19 metropolitan statistical areas reported in June in comparison with June 2009. In addition, existing single-family home sales rose in 12 of the 19 areas from a year ago while two were unchanged.
Existing condominium and co-op sales slipped 1.5 percent to a seasonally adjusted annual rate of 670,000 in June from 680,000 in May, but are 20.5 percent higher than the 556,000-unit pace in June 2009. The median existing condo price was $180,100 in June, which is 1.4 percent below a year ago.
Regionally, existing-home sales in the Northeast rose 7.9 percent to an annual level of 960,000 in June and are 17.1 percent above June 2009. The median price in the Northeast was $244,300, down 1.2 percent from a year ago.
Existing-home sales in the Midwest dropped 7.5 percent in June to a pace of 1.23 million but are 11.8 percent higher than a year ago. The median price in the Midwest was $155,900, down 0.1 percent from June 2009.
In the South, existing-home sales fell 6.5 percent to an annual level of 2.01 million in June but are 11.0 percent above June 2009. The median price in the South was $163,600, unchanged from a year ago.
Existing-home sales in the West dropped 9.3 percent to an annual pace of 1.17 million in June but are 0.9 percent higher than a year ago. The median price in the West was $221,800, up 1.5 percent from June 2009.
Source: NAR
http://www.realtor.org/RMODaily.nsf/pages/News2010072201?OpenDocument
Saturday, June 26 2010
Existing-home sales remained at elevated levels in May on buyer response to the tax credit, characterized by stabilizing home prices and historically low mortgage interest rates, according to the National Association of REALTORS®. Gains in the West and South were offset by a decline in the Northeast; the Midwest was steady.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain.
Buyers Face Purchasing Delays
Lawrence Yun, NAR chief economist, said he expects one more month of elevated home sales. “We are witnessing the ongoing effects of the home buyer tax credit, which we’ll also see in June real estate closings,” he said. “However, approximately 180,000 home buyers who signed a contract in good faith to receive the tax credit may not be able to finalize by the end of June due to delays in the mortgage process, particularly for short sales.
“In addition, many potential sales are being delayed by an interruption in the National Flood Insurance Program. Florida and Louisiana, also impacted by the oil spill, have the highest percentage of homes that require flood insurance.”
As the leading advocate for homeownership issues, NAR is supporting Senate amendments to extend the home buyer tax credit closing deadline through September 30 for contracts written by April 30, and to renew the flood insurance program. “Sales and related local economic activity would have been higher without delays in the closing process or flood insurance issues,” Yun noted.
Housing Still Affordable
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.89 percent in May from 5.10 percent in April; the rate was 4.86 percent in May 2009.
The national median existing-home price for all housing types was $179,600 in May, up 2.7 percent from May 2009. Distressed homes slipped to 31 percent of sales last month, compared with 33 percent in April; it was also 33 percent in May 2009.
NAR President Vicki Cox Golder said home prices have been stabilizing all year. “With distressed sales at roughly the same level as a year ago, the gain in home prices is a hopeful sign that the market is in a good position to stand on its own without further government stimulus,” she said. “Very affordable mortgage interest rates and stabilizing home prices are encouraging home buyers who were on the sidelines during most of the boom and bust cycle.”
Pending home sales are expected to decline notably in May and June from the spring surge, but Yun added that job growth and a manageable level of foreclosures are keys to sales and price performance during the second half of the year.
Inventory Falling
A parallel NAR practitioner survey shows first-time buyers purchased 46 percent of homes in May, down from 49 percent in April. Investors accounted for 14 percent of transactions in May compared with 15 percent in April; the remaining sales were to repeat buyers. All-cash sales were at 25 percent in May, edging down from a 26 percent share in April.
Total housing inventory at the end of May fell 3.4 percent to 3.89 million existing homes available for sale, which represents an 8.3-month supply at the current sales pace, compared with an 8.4-month supply in April. Raw unsold inventory is 1.1 percent above a year ago, but is still 14.9 percent below the record of 4.58 million in July 2008.
Single-family home sales declined 1.6 percent to a seasonally adjusted annual rate of 4.98 million in May from a pace of 5.06 million in April, but are 17.5 percent above the 4.24 million level in May 2009. The median existing single-family home price was $179,400 in May, which is 2.7 percent above a year ago.
Single-family median existing-home prices were higher in 16 out of 20 metropolitan statistical areas reported in May from a year ago. In addition, existing single-family home sales rose in 18 of the 20 areas from May 2009.
Existing condominium and co-op sales fell 6.8 percent to a seasonally adjusted annual rate of 680,000 in May from 730,000 in April, but are 32.6 percent above the 513,000-unit pace in May 2009. The median existing condo price was $181,300 in May, up 3.4 percent from a year ago.
By Region
- Existing-home sales in the Northeast fell 18.3 percent to an annual level of 890,000 in May from a surge in April, but are 12.7 percent higher than a year ago. The median price in the Northeast was $240,200, down 2.2 percent from May 2009.
- In the Midwest, existing-home sales were unchanged in May at a pace of 1.33 million and are 22.0 percent above May 2009. The median price in the Midwest was $150,700, up 2.2 percent from a year ago.
- In the South, sales increased 0.5 percent to an annual level of 2.15 million in May and are 22.9 percent above a year ago. The median price in the South was $159,000, up 1.0 percent from May 2009.
- Existing-home sales in the West rose 4.9 percent to an annual rate of 1.29 million in May and are 15.2 percent higher than May 2009. The median price in the West was $221,300, up 7.4 percent from a year ago.
Source: NAR http://www.realtor.org/RMODaily.nsf/pages/News2010062201?OpenDocument
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