Tag Archives: National Association of Realtors

National Association of Realtors Reports Strong Existing-Home Sales

24 Jan

December Existing-Home Sales Rise, 2013 Strongest in Seven Years

Media Contact: Walter Molony / 202-383-1177 / Email

WASHINGTON (January 23, 2014) – Existing-home sales edged up in December, sales for all of 2013 were the highest since 2006, and median prices maintained strong growth, according to the National Association of Realtors®.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 1.0 percent to a seasonally adjusted annual rate of 4.87 million in December from a downwardly revised 4.82 million in November, but are 0.6 percent below the 4.90 million-unit level in December 2012.

For all of 2013, there were 5.09 million sales, which is 9.1 percent higher than 2012. It was the strongest performance since 2006 when sales reached an unsustainably high 6.48 million at the close of the housing boom.

Lawrence Yun, NAR chief economist, said housing has experienced a healthy recovery over the past two years. “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,” he said. “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.”

The national median existing-home price for all of 2013 was $197,100, which is 11.5 percent above the 2012 median of $176,800, and was the strongest gain since 2005 when it rose 12.4 percent.

The median existing-home price for all housing types in December was $198,000, up 9.9 percent from December 2012. Distressed homes – foreclosures and short sales – accounted for 14 percent of December sales, unchanged from November; they were 24 percent in December 2012. The shrinking share of distressed sales accounts for some of the price growth.

Ten percent of December sales were foreclosures, and 4 percent were short sales. Foreclosures sold for an average discount of 18 percent below market value in December, while short sales were discounted 13 percent.

Total housing inventory at the end of December fell 9.3 percent to 1.86 million existing homes available for sale, which represents a 4.6-month supply at the current sales pace, down from 5.1 months in November. Unsold inventory is 1.6 percent above a year ago, when there was a 4.5-month supply.

The median time on market for all homes was 72 days in December, up sharply from 56 days in November, but slightly below the 73 days on market in December 2012. Adverse weather reportedly delayed closings in many areas. Twenty-eight percent of homes sold in December were on the market for less than a month, down from 35 percent in November, which appears to be a weather impact.

Short sales were on the market for a median of 122 days in December, while foreclosures typically sold in 67 days and non-distressed homes took 70 days.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.46 percent in December from 4.26 percent in November; the rate was 3.35 percent in December 2012.

NAR President Steve Brown, co-owner of Irongate, Inc., Realtors® in Dayton, Ohio, said that with jobs expected to improve this year, sales should hold even despite rising home prices and higher mortgage interest rates. “The only factors holding us back from a stronger recovery are the ongoing issues of restrictive mortgage credit and constrained inventory,” he said. “With strict new mortgage rules in place, we will be monitoring the lending environment to ensure that financially qualified buyers can access the credit they need to purchase a home.”

First-time buyers accounted for 27 percent of purchases in December, down from 28 percent in November and 30 percent in December 2012.

All-cash sales comprised 32 percent of transactions in December, unchanged from November; they were 29 percent in December 2012. Individual investors, who account for many cash sales, purchased 21 percent of homes in December, up from 19 percent in November, but are unchanged from December 2012.

Single-family home sales rose 1.9 percent to a seasonally adjusted annual rate of 4.30 million in December from 4.22 million in November, but are 0.7 percent below the 4.33 million-unit pace in December 2012. The median existing single-family home price was $197,900 in December, up 9.8 percent from a year ago.

Existing condominium and co-op sales fell 5.0 percent to an annual rate of 570,000 units in December from 600,000 units in November, and are unchanged a year ago. The median existing condo price was $198,600 in December, which is 10.9 percent above December 2012.

Regionally, existing-home sales in the Northeast slipped 1.5 percent to an annual rate of 640,000 in December, but are 3.2 percent higher than December 2012. The median price in the Northeast was $239,300, up 3.6 percent from a year ago.

Existing-home sales in the Midwest fell 4.3 percent in December to a pace of 1.11 million, and are 0.9 percent below a year ago. The median price in the Midwest was $150,700, which is 7.0 percent higher than December 2012.

In the South, existing-home sales increased 3.0 percent to an annual level of 2.03 million in December, and are 4.6 percent above December 2012. The median price in the South was $173,200, up 8.9 percent from a year ago.

Existing-home sales in the West rose 4.8 percent to a pace of 1.09 million in December, but are 10.7 percent below a year ago. Inventory is tightest in the West, which is holding down sales in many markets, and multiple bidding is causing it to experience the strongest price gains in the U.S. The median price in the West was $285,000, up 16.0 percent from December 2012.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. For additional commentary and consumer information, visit www.houselogic.com and http://retradio.com.

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NAR Predicts 9% Increase In Home Sales

30 Jan

The National Association of Realtors released estimates that predict a 9% increase in home sales in 2013.

“The supply limitation appears to be the main factor holding back contract signings in the past month,” said Lawrence Yun, NAR chief economist. “Still, contract activity has risen for 20 straight months on a year-over-year basis,” he said. “Buyer interest remains solid, as evidenced by a separate Realtor® survey which shows that buyer foot traffic is easily outpacing seller traffic.

“Supplies of homes costing less than $100,000 are tight in much of the country, especially in the West, so first-time buyers have fewer options,” he said. “We expect a seasonal rise of inventory in the spring to help, but a seller’s market may be developing. Much of the West is already a seller’s market for homes priced under a million dollars, but conditions are much more balanced in the Northeast.”

Home Sales, Prices Up

30 Nov

October’s 2.1 increase of existing home sales represents a seasonally adjusted annual rate of 4.79 million as reported by the National Association of Realtors (NAR)., putting October at a 10.9% year-over increase from the 4.32 million-unit figure in October 2011.

“Home sales continue to trend up and most October transactions were completed by the time the storm [Sandy] hit, but the growing demand with limited inventory is pressuring home prices in much of the country, said Lawrence Yun, NAR chief economist. “We expect an impact on Northeastern home sales in the coming months from a pause and delays in storm-impacted regions.”

NAR notes the national median existing-home price for all housing types was $178,600 in October, an 11.1% rise from last year, marking eight consecutive monthly year-over-year increases.

“Rising home prices have already resulted in a $760 billion growth in home equity during the past year,” said Yun. “Given that percentage point of price appreciation translates into an additional $190 billion in home equity, we could see close to a $1 trillion gain next year.”

Median Home Prices Up

29 Oct

The new home market is a greater source of strength for the economy in that new home sales jumped 5.7% in September.This is the
largest increase since the stimulus efforts of 2010.   Although prices for new
homes slid back just by 3.2%, we are still seeing that median home prices are
11.7% higher from a year ago.

The National Association of Realtors is optimistic that low interest rates will continue to influence home sales, despite an only 0.3 increase in September home sales.

National Association of Home Builders os optimistic in its economic outlook as well.  The NAHB is predicting a 21 percent increase in single-family starts this year to 528,000 units and a further 26 percent rise to 665,000 units in 2013. As for multi-family units, the NAHB expects a 26 percent increase this year to 224,000 units and a 6 percent climb in 2013 to 328,000 units.

 

Home Prices Up

20 Sep

Redfin,  RE/MAX and the National Association of Realtors all reported a year-over-year increase in home values.  Despite a small decrease in July of this year, an overall increase of 3% to over 7% is reported, depending on which source you follow.  This has pulled a significant number of homeowners up from underwater, greatly affecting their ability to refinance.

S&P Case-Shiller Index of Home Values Drops, Home Sales Rise

5 Mar

According to numbers released last week for 2011 year-end home prices, U.S. home prices fell in December from a month earlier, ending 2011 at the lowest levels since the housing crisis began in mid-2006.

The report is the most widely-cited, private-sector metric for the housing market. The index aims to measures change in home prices from month-to-month, and from year-to-year, in select U.S. cities and nationwide.

During the fourth quarter, home prices reached new lows, falling 3.8% sequentially and 4% year-to-year. Prices are down 33.8% from their peak in the second quarter of 2006.

“While we thought we saw some signs of stabilization in the middle of 2011, it appears that neither the economy nor consumer confidence was strong enough to move the market in a positive direction as the year ended,” said David Blitzer, chairman of S&P’s index committee. “After a prior three years of accelerated decline, the past two years has been a story of a housing market that is bottoming out but has not yet stabilized.”

The housing market remains sluggish despite soft prices and interest rates that have been hovering around historic lows. A weak job market, abundant foreclosures and tighter mortgage requirements have continued to weigh on the market.

Of the 20 major U.S. metropolitan markets, 18 reported prices were lower than during November. Only Miami and Phoenix moved higher, up a scant 0.2% and 0.8%, respectively. Year-to-year, only Detroit saw improvement, up 0.5%.

The Case-Shiller index of 10 major metropolitan areas and the 20-city index were down 1.1% in December from a month earlier.

Year-to-year, unadjusted December prices declined 3.9% for the 10 major markets while the 20-city index dropped 4%.

On a brighter note, The National Association of Realtors last week reported that sales of previously owned homes in the U.S. rose in January to the highest level in nearly two years and the inventory of unsold homes contracted to a level considered healthy by economists. Existing-home sales increased 4.3% in January from December.