Posted tagged ‘Home Sales’

Home Sales Continue Growth Streak in May

June 23, 2014

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This is another  indication of a growing economy. As long as prices do not rise greatly the housing market should stay strong.  For a more detailed look at this subject – please read the article below.

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The National Housing Report from RE/MAX found that for the third month in a row, home sales in May rose higher than sales in the previous month. May sales were 11.5 percent higher than in April, but stubbornly remained below the same period last year by 9.9 percent.

Of the 52 metros included in the study, a mere three experienced lower sales than the previous month. Overall, home prices continued to rise higher in May, with a 7.7 percent increase over the previous year.

“The usually strong spring selling months appear to be following traditional growth patterns. We’ve now seen three straight months of increased sales over the previous month—although we may not match the growth rates we saw last year, we are seeing significant increases in both sales and prices and that’s a positive sign,” said Margaret Kelly, RE/MAX CEO.

The National Housing Report commented that while both credit availability and inventory remain tight, May was the sixth consecutive month with fewer year-over-year inventory losses than the previous month. The month’s supply of inventory dropped to 3.8—a supply of six months indicates an equally balanced market between buyers and sellers.

RE/MAX found that in the 52 metro areas studied, the median sales price of all homes sold during May was $198,750, 4.6 percent higher than the median price in April and 7.7 percent higher than the median price last year. Home prices have risen continuously for 28 months. The report notes that although prices continue to rise due to limited inventory, prices are not rising as rapidly as the 10.8 percent increase seen in May 2013.

To read the complete article – please use the link below.

Home Sales Continue Growth

Home Prices Jump 1.4% in March

May 9, 2014

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This seems to be a case of business as usual in the real estate game. Distressed properties are a strong influence on the existing market and they will continue to be so into the foreseeable future. For more details please read the article below.

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Despite a lackluster spring that went against analysts’ projections, CoreLogic reported in its latest Home Price Index (HPI) that home prices, including distressed and non-distressed sales, still rose from February to March by 1.4 percent.

Without distressed sales, the HPI still reflected positive gains for the month, up 0.9 percent month-over-month.

Yearly, home prices rose by 11.1 percent from March 2013 to March 2014. Excluding distressed sales, the yearly gain is slightly less at 9.5 percent.

March’s gain continues a 25-month consecutive streak of year-over-year home price gains.

“March data on new and existing home sales was weaker than expected and is a cause for concern as we enter the spring buying season. Interest rate-disenfranchised potential sellers are adding to the existing shadow inventory, while buyers who can’t find what they want to buy are on the sidelines creating a new kind of ‘shadow demand,'” said Dr. Mark Fleming, chief economist at CoreLogic.

“This supply and demand imbalance continues to drive home prices higher, even though transaction volumes are lower than expected,” Fleming said.

Moving forward, CoreLogic’s HPI suggests that home prices will continue to rise, growing 6.7 percent by March 2015. CoreLogic’s analysis of March also projects that home prices will continue to grow monthly, increasing 0.8 percent in April (including distressed sales).

To read the complete article – please use the link below.

Home Prices Jump

All-Cash Residential Sales Reach New High

May 8, 2014

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This is good news for sellers and realtors but not so much for the mortgage industry.

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The share of all-cash sales reached a new high in the first quarter of 2014, even as the total share of institutional investor purchases dropped to near-record lows. All-cash sales made up 42.7 percent of all U.S. residential property sales for Q1, up from 37.8 percent from the previous quarter, according to RealtyTrac’s U.S. Institutional Investor and Cash Sales Report.

All-cash sales increased yearly as well, up from 19.1 percent of all sales in Q1 2013.  All-cash sales are the highest they have been since RealtyTrac began tracking this data in 2011.

“Strict lending standards combined with low inventory continue to give the advantage to investors and other cash buyers in this housing market,” said Daren Blomquist, VP at RealtyTrac. “The good news is that as institutional investors pull back their purchasing in many markets across the country, there is still strong demand from other cash buyers—including individual investors, second-home buyers and even owner-occupant buyers—to fill the vacuum of demand left by institutional investors.”

15 percent of all-cash purchases were for foreclosures, with 10 percent for REO properties. The average sales price of an all-cash purchase, $207,668, was 13 percent below the average estimated full market value of $237,900.

While all-cash purchases were soaring to new heights to start the year, total investor purchases dropped to the lowest level seen since Q1 2012.

5.6 percent of all U.S. residential sales in Q1 2014 were from institutional investors, which RealtyTrac notates as a non-lending entity that purchases at least 10 properties in the past 12 months.

To read the complete article – please use the link below.

All-Cash Sales Rise

December Existing-Home Sales Up 1%

January 28, 2014

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It seems that 2013 was really a seller’s market except for the stringent requirement to qualify for a mortgage. Most Mortgage Brokers think that the lenders are taking advantage for this increase in sales to demand that buyers are “Over Qualified” before they will grant a mortgage. For a more detailed look at this subject – please read the article below.

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Existing-home sales finished 2013 with a slight increase, closing the book on the strongest year for sales since 2006, the National Association of Realtors (NAR) reported Thursday.

Total existing-home sales–including all completed transactions of single-family homes, townhomes, condominiums, and co-ops–increased 1.0 percent month-over-month to a seasonally adjusted annualized rate of 4.87 million last month. November’s sales rate was revised down to 4.82 million.

December’s sales were down year-over-year, coming up 0.6 percent short of December 2012’s pace of 4.90 million.

Removing all other types of sales, sales of existing single-family homes rose 1.9 percent from November to an adjusted annual rate of 4.30 million. Compared to the prior year, single-family sales were down 0.7 percent.

For all of last year, NAR estimates there were 5.09 million existing-home sales, a 9.1 percent improvement from 2012.

“Existing-home sales have risen nearly 20 percent since 2011, with job growth, record low mortgage interest rates and a large pent-up demand driving the market,” said NAR chief economist Lawrence Yun. “We lost some momentum toward the end of 2013 from disappointing job growth and limited inventory, but we ended with a year that was close to normal given the size of our population.”

To read the complete article – please use the link below.

Home Sales Up

Online Technology Likely to Play Larger Role in Mortgage Process

January 6, 2014

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While this survey addresses the use of more technology regarding the mortgage process the same holds true for the purchasing of a home. The easier it is for the consumer to compare different potential purchases the more likely they will be to buy. The better job the Realtor does in presenting their offering the greater the odds are that their listed home will sell. For a more detailed look at this subject – please read the article below.

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A recently released borrower survey on shopping habits shows increasing reliance on online tools when mortgage shopping, though many still find the learning curve too steep.

Fannie Mae’s Economic & Strategic Research Group released Thursday the findings from its latest topic analysis. The data was taken from consumer survey results from throughout the second quarter of 2013.

According to the group, the collected data show higher income borrowers—those earning at least $100,000 per year—are more likely to use online applications to make their own mortgage calculations, while low earners—those making less than $50,000 annually—rely more on real estate agents, lenders, and advice from family and friends in making their borrowing decisions.

In addition, when asked for suggestions in making the shopping process easier, high-income borrowers focused more on the technological side, with most saying they would like an improved way to compare multiple loan offers. On the other hand, low-income consumers were more likely to say they want easier-to-understand loan terms and costs.

“Higher income borrowers are using online shopping approaches about twice as frequently as lower income borrowers, which aligns with a stronger focus on doing their own calculations and using tools,” the research group’s business strategy director, Steve Deggendorf, said.

To read the complete article – please use the link below.

Online Technology

Even in Buyer’s Market, Homeownership Expected to Decline

January 2, 2014

forecast-fourThis is good news in spite of what it sounds like. The rapid growth in home prices would only lead to another “Bubble” and more than likely a crash down the line. For a more detailed look at this subject – please read the article below.

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Zillow expects conditions next year to be a bit friendlier to homebuyers—but that doesn’t mean we’ll necessarily see more owner-occupied housing, experts at the real estate marketplace say.

Looking at ongoing trends, Zillow made four major predictions about the course of housing over 2014.

First, home values are forecast to rise by 3 percent at the national level over the year. The prediction projects a retreat from 2012 and 2013 levels, which Zillow says were “unsustainable and well above historic norms for healthy, balanced markets.”

“This year, home value gains will slow down significantly because of higher mortgage rates, more expensive home prices, and more supply created by fewer underwater homeowners and more new construction,” said Dr. Stan Humphries, Zillow’s chief economist. “For buyers, this is welcome news, especially for those in markets where bidding wars were becoming the norm and bubble-like conditions were starting to emerge.”

Second, the company predicts mortgage rates will reach 5 percent by the end of the year—a level not seen since early 2010—as the economy improves and the Federal Reserve adapts its policies. That news may not be as bright for buyers, but Erin Lantz, director of mortgages for Zillow, says it’s important to keep perspective.

“While this will make homes more expensive to finance—the monthly payment on a $200,000 loan will rise by roughly $160—it’s important to remember that mortgage rates in the 5 percent range are still very low,” Lantz said. “Because affordability is still high in most areas relative to historic norms, rising rates won’t derail the housing recovery.”

However, Lantz noted affordability has already turned into an issue for some markets, particularly those in California.

To read the complete article – please use the link below.

Homeownership Expected to Decline

West Is Best for Healthiest Housing Markets

December 17, 2013

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This article, or at least the Headline, is misleading in that these markets are only the “Healthiest” if your definition for healthiest is rapid price raises. These areas are looking at pricing the average home buyer right out of the market and thus reducing the qualified purchasers to a level that will not cover all the homes up for sale. For a more detailed look at this subject – please read the article below.

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According to Zillow’s October Market Health Index, the healthiest housing markets are in California and other areas in the western United States.

The top five markets with the healthiest index readings were San Jose (Index of 9), San Francisco (8.9), Los Angeles (8.6), San Diego (8.4), and Denver (8.1). The next five markets were Boston, Pittsburgh, Portland, New York, and Sacramento.

The study reveals home values in the leading market, San Jose, have increased 19.6 percent compared to one year ago, with a median selling price of $731,500. Home values in San Francisco, the second healthiest market, actually increased 24.1 percent.

Zillow’s chief economist Dr. Stan Humphries explained the benefits of the robust situation in these areas, and added a bit of caution: “Rapid home value appreciation in the West, particularly California, is currently having a very positive effect on a number of other factors, including negative equity, foreclosure activity, and the overall financial health of local homeowners. But that same rapid appreciation may cause affordability issues in the future in these markets, leading to potentially unhealthy conditions,” he said.

“The housing market is complex, and while individual statistics can be useful in describing a single aspect of a given market, one number on its own can’t tell the full story,” Humphries continued. “As markets continue to evolve and recover, the Market Health Index will reflect these changing trends, offering consumers a valuable tool on which to base their decisions.”

To read the complete article – please use the link below.

Housing Markets