Posts Tagged ‘realtor’

New Home Sales Less Than Half of Historical Norms

Posted on June 13, 2017 by Laura Lam

The current level makes up 88.3% of the 50-year average, according to a report from Trulia. However, new home sales are unable to keep up with the rate of total sales.  How many new home sales do we need for the market to look normal?  According to Trulia Chief Economist Ralph McLaughlin, if we compare the share of new home sales to total sales, that share needs to more than double.  “In April, new home sales made up about 11.9% of all home sales, which is less than half of the historical average of 23.6%,” McLaughlin said. However other experts explain…

Housing Confidence Dips in March

Posted on April 25, 2017 by Laura Lam

Americans came down off their confidence high in March as fewer say now is a good time to buy a home, according to Fannie Mae’s Home Purchase Sentiment Index.  The index decreased 3.8 percentage points to 84.5 in March, down from February’s survey high. “Home purchase sentiment gave back some of the gains accumulated over the prior two months that sent the index to its survey high in February,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “Strong home price appreciation has turned into a double-edged sword for the housing market as it boosted the net share…

Continued Good News For Housing

Posted on March 28, 2017 by Laura Lam

After several years of job gains combined with the hope that the best is yet to come in 2017, consumer confidence surged, according to the new consumer report from the National Association of Realtors.  In the first quarter of 2017, NAR’s quarterly Housing Opportunities and Market Experience survey found that the number of households that believe the economy is improving soared to its highest share in the survey’s 5-quarter history – 62%. This is up from 54% in the fourth quarter and 48% in March 2016. While this surge in confidence is not exactly unexpected, it is encouraging news for the…

Home Sales Close Out 2016 on High Note

Posted on February 15, 2017 by Laura Lam

Hopes are high for this year as 2016 closed out pending home sales on a high note, however low inventory continues to dampen the high spirits.  Pending home sales increased in December by 1.6% to 109, up from 107.3 in November, according to a new report from the National Association of Realtors. That is an increase of 0.3% from December 2015. “Pending sales rebounded last month as enough buyers fended off rising mortgage rates and alarmingly low inventory levels to sign a contract,” NAR Chief Economist Lawrence Yun said.  “The main storyline in the early months of 2017 will be if…

Higher Interest Rates Could Hit Some Homeowners Hard

Posted on January 26, 2017 by Laura Lam

Mortgage rates, while down over the past two weeks, have trended higher since the election of President-elect Donald Trump.  In December, the Federal Reserve made its first and last interest rate hike for 2016, but left the industry with the notion that 3 more could be on the way for 2017. For some, the rise in interest rates means higher profits for the first quarter of 2017, but for those looking to buy a home, it could mean higher payments or smaller homes. MarketWatch used data gathered from the National Association of Realtors (NAR) to show the top 5 counties where homebuyers will see the greatest change if…

Existing Home Sales Hit 9-Year High in October

Posted on December 07, 2016 by Laura Lam

Sales of previously owned homes unexpectedly climbed in October to the highest level since February 2007, a sign of momentum in the housing market a month before a jump in borrowing costs, according to the National Association of Realtors. Contract closings rose 2% to a 5.6 million annual rate (the forecast was 5.44 million). Sales increased 0.5% from October 2015 before seasonal adjustment. The median sales price rose 6% from October 2015 to $232,200, while inventory of available properties fell 4.3% from October 2015 to 2.02 million, marking the 17th straight year-over-year decline. Steady hiring, a pickup in incomes, and…

Existing Homes Fall to 7-Month Low

Posted on October 17, 2016 by Laura Lam

Contracts to purchase previously owned homes fell to a seven-month low in August, held back by a tight supply in the housing market, according to a recent report from the National Association of Realtors.   Pending home sales fell 2.4% (the median forecast was for no change) after a revised 1.2% increase in July. The index dropped to a seasonally adjusted 108.5, the lowest since January, from 111.2 in July. Contract signings rose 4% from August 2015 on an unadjusted basis. The fall in contract signings was the third in four months, adding to signs that a relative paucity of available homes…

Housing Recovery Still Far From ‘Normal’

Posted on August 09, 2016 by Laura Lam

Home sales rose to their highest level since before the financial crisis and were 25% higher than a year earlier, according to the Census Bureau.  But while news of a 592,000 annual rate was positive, economists cautioned not to break out the champagne for the housing market quite yet. “This … is an important milestone for the housing recovery, but historically, it is well short of what should be normal,” said Lawrence Yun, chief economist for the National Association of Realtors.  Considering population and job growth, new home sales should be around 800,000 or 900,000 a year, according to Yun….

It's Getting Cheaper To Buy A Home

Posted on November 25, 2015 by Saldutti

Earlier this year, the Federal Housing Administration began reducing mortgage insurance premiums on its loans by an average of $900 a year. While the FHA loans typically come with low down payment requirements, they often have higher monthly payments as a result of the mortgage insurance that (unlike conventional loans) continues for the life of the loan, even when 20% equity is reached. Now it appears the mortgage insurance premium reduction is having the desired effect.  Data from RealtyTrac shows that FHA loans were used in 23% of all financed purchases in the second quarter of 2015, up from 19% in the second quarter of…

Number of First-Time Home Buyers Falls to 28-Year Low

Posted on November 16, 2015 by Saldutti

The portion of homebuyers making their first residential purchase fell for a third straight year, and is now at the lowest level since 1987.  The share of first-time buyers dropped to 32% from 33% last year, according to a National Association of Realtors survey that covered transactions in the 12 months through June. That’s below the long-term average of almost 40%, the group said in its report. Rising home prices are holding back many young would-be buyers who can’t easily save for a down payment because of student-loan burdens and soaring apartment rents. The median amount of student debt for…