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Posts Tagged ‘inventories’

In some Markets Appraisals Equal Selling Price

May 15th, 2013 Comments off

CNNMoney reports as home prices increase and inventories shrink, appraisers are valuing homes at or above their values, according to chief economist Lawrence Yun of the National Association of Realtors. A Seattle-based real estate agent says none of the appraisals for the homes he has sold this year have come in below the selling price. In some hot markets appraisals are above the selling price. As MHProNews has learned, in West Covina, Calif. an appraiser wrote up the appraisal at the purchase price. Agent Eric Tan says, “I was able to sell the client’s home for about $40,000 more than I thought the appraiser would value it.”

(Photo credit: Paul Sakuma/Associated Press)

Builder Confidence Regains Three Points

May 15th, 2013 Comments off

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) composite reports builder confidence rose from 41 in April to 44 in May, as all three indexes that make up the composite gained. The HMI is based on builders’ perceptions of current sales, sales expectations, and traffic of prospective buyers, all of which showed an increase for May. MHProNews has learned the HMI has been used for 25 years. “Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable mortgage rates and strengthening local economies,” says NAHB Chairman Rick Judson. The three-month moving averages revealed no changes in the Northeast, Midwest, or South, with index scores of 37, 45, and 42 respectively, while the West dropped six points to 49.

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Fallout from the Improving Housing Market

March 21st, 2013 Comments off

The nytimes informs MHProNews the turnaround in the housing industry has led to such a shortage of existing homes for sale that would-be buyers in some areas are reluctant to list their homes for fear it will sell before they can find a replacement. Others are waiting to see how high prices may rise before they sell. In Sacramento, Calif., where the median house price has spiked 15 percent in 2012, realtor Kurt K. Colgan says, “In my 27 years I’ve never seen inventories this low. I’ve also never seen a market turn so quickly.” Across the country sales prices increased 7.3 percent in 2012, surging 23 percent in Phoenix. While new home construction languished during the recent lean years following the bubble, many tradespeople sought other careers, making it tougher for builders who now have work to find skilled labor. Many hard hats have gone to the high-paying oil field jobs in Texas and North Dakota. In addition, builders who own land may want to wait and get a better price as values rise. Harry Elliott III, president of 100-year old Elliott Homes who built 1,400 homes in 2006, 250 last year, and plans on 350 this year says, “If we could build 500 houses right now, could we sell them? Possibly, but I don’t want to sell all my lots that I’ve held on to forever and have to give them away at these prices. We lost money for a lot of years, and I’d like to make some money for a change. I’m not building because I need the practice.”

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The Fed Says Housing Market Slowly Rising

March 7th, 2013 Comments off

HousingWire informs MHProNews the Federal Reserve’s February Beige Book of growth in economic activity indicates the real estate market in almost all the districts recorded strong improvement as inventories shrank and home prices rose. While in Philadelphia low-end prices were firm or rising and the prices of high-end homes were falling, the districts of Boston, Dallas, Kansas City, Minneapolis, San Francisco and St. Louis showed modest gains overall. Home construction rose in most districts except in Kansas City where it remained unchanged. Multifamily building increased in several districts, but financing problems have stymied Atlanta and Cleveland in that regard.

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Home Sales, Values Expected to Rise

February 28th, 2013 Comments off

Due to the low inventory of previously-owned homes, the National Association of Realtors (NAR) predicts existing home sales will reach five million this year, a 7.3 percent increase from last year, although total sales for the year will rise less than in 2012, as originationnews informs MHProNews. Tight inventories are shooting up prices. “We’re experiencing the strongest price growth in seven years,” says NAR’s Chief Economist Lawrence Yun. He says prices could go seven percent higher in 2013 as long as inventory remains tight. NAR’s pending sales index (PSI), which covers signed contracts, hit 105.9 in Jan., up from 101.3 in Dec. 2012.

(Image credit: HousingWire)

Housing Numbers Up for 2012

January 15th, 2013 Comments off

According to HousingWire, CoreLogic offers the following housing scorecard for 2012:

  • 4.2 million home sales, up from 3.9 million in 2011, a six percent increase;
  • first year-over-year sales increase since 2005;
  • REO (real estate-owned) house sales fell 20% to 600,000;
  • new home sales rose three percent to 300,000;
  • short sales rose 23% to 370,000 units:
  • the serious delinquency rate dropped 7.4% to 6.9%;
  • serious delinquencies fell by one million loans since the downturn.

MHProNews has learned CoreLogic predicts the housing market will continue to improve despite the impact of the QM or other regulations. “Rising home prices will continue to slowly release pent-up supply as under-equitied borrowers are unlocked and opportunistic sellers begin to provide relief to tight inventories,” says the data research firm.

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NAR has High Hopes

August 31st, 2012 Comments off

nationalmortgagenews reports the National Association of Realtors (NAR) says July pending home sales rose 2.4 percent over June to a two-year high, after falling in June 1.4 percent from the previous month. The trade group is forecasting home sales will rise nine percent this year and eight percent in 2013, and home values will increase 10 percent over the next two years. As MHProNews has learned, chief economist Lawrence Yun says, “Falling visible and shadow inventories point toward continuing price gains.”

(Photo credit: Knox News)

Underwater Loans Fall

August 24th, 2012 Comments off

nationalmortgagenews tells MHProNews research firm Zillow says in its “Negative Equity Report” 400,000 fewer mortgages fell into underwater loan status in the second quarter 2012 compared to the first quarter, dropping from 15.7 million to 15.3 million Americans. Percentage-wise, the numbers dropped from 31.4% of all homeowners with balances higher than the value of their property to 31%. Stan Humphries, Zillow’s chief economist, said rising home values caused by tightening inventories was the main cause for the drop. By age group, underwater borrowers between 20 and 24 are more likely to be current on their loans, with 5.9% being 90 or more days past due as compared to 9.2% of all underwater homeowners.

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For-sale Home Inventory Falls

August 20th, 2012 Comments off

In its July analysis of housing data for 16 markets, realtormag reports housing inventories, including single-family, townhomes, condos, and co-ops are 19 percent below a year ago as for sale homes remain at record lows. “Low inventories, combined with rising list prices and lower times on market, are positive signs that the overall market is in a stabilization mode,” notes the magazine, as median asking prices hit 2.63 percent above list prices in July. In addition, housing inventory median age has dropped nine percent in that same time frame. MHProNews has learned of the ten metro areas registering the largest drops in inventories from July 2011 to July 2012, eight are in California. The top five, with their respective inventory changes are: Oakland, CA -59.30%; Fresno, CA -47.81%; Bakersfield, CA -44.71; Seattle-Bellevue-Everett, WA, -42.23%; and San Jose, CA -41.76%.

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Inflation will be Higher than Current Interest Rate

August 16th, 2012 Comments off

RealtorMag ticks off four strong reasons for buying a home now, as John Waggoner writes in USA Today. The median single-family home price fell to $154,600 in January, the lowest price since Oct. 2001, a full third below the $230,900 number at the height of the housing market in July 2006. Secondly, in almost every metro market, because of the continuing rise in rents, it is now cheaper to buy than to rent. Thirdly, inventories of for-sale homes are beginning to shrink, which in the long term will lead to higher prices, making now the better time to buy. And finally, mortgage rates are at absolute record lows, making housing affordability more attractive. As MHProNews has learned the average 30-year fixed rate mortgage, the most popular among home buyers, is just above the lowest rate ever (3.49% recorded July 26) at 3.59%. As Waggoner points out, it is likely the rate of inflation will be above the current interest rate at some point in the future.

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