Archive

Posts Tagged ‘price increases’

Existing Home Sales Drop in October

November 24th, 2015 Comments off

housing slides  cnnmoney  creditThe National Association of Realtors (NAR) informs MHProNews existing home sales declined 3.4 percent in October to a seasonally-adjusted annual rate (SAAR) of 5.36 million units, following Sept.’s sales pace of 5.55 million units, the second highest since 2007.

Falling more than expected, regions which have realized the largest price increases saw the largest declines, although sales rose by 3.9 percent over last October. Nevertheless, sales are on track to record their best annual rate in eight years, according to cnbc.

Household formation is increasing, boosted by a strengthening economy and lower unemployment, but the low inventory of houses for sale has driven up prices, crippling would-be first-time homebuyers. Economists had predicted the SAAR for October would be 5.40 million.

Sales last month fell 8.7 percent in the West and 3.2 percent in the south, two regions that have witnessed large price increases because of tight inventory. In the Midwest sales slipped 0.8 percent, and were unchanged in the Northeast. ##

(Image credit: CNNMoney–house prices slide)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Existing Home Sales Rise over Last Year

July 23rd, 2013 Comments off

While sales of existing homes slipped 1.2 percent in June from May, the National Association of Realtors (NAR) says sales rose 15.2 percent over June of 2012. The seasonally-adjusted annual rate (SAAR) fell from 5.14 million in May to 5.08 million in June. Lawrence Yun, NAR’s chief economist, says higher interest rates may have affected sales. “We’re still dealing with a large pent-up demand. However, higher mortgage interest rates will bite into high-cost regions of California, Hawaii and the New York City metro area market.” Yun also says low inventory has held back sales, noting in June there was a 5.2-month supply at the current sales pace, a drop of 7.6 percent from a year ago. Low inventory also contributed to home price increases, MHProNews has learned from CNNMoney, as the median price rose 13.5 percent from June 2012 to $214,000, marking the 16th consecutive month prices have risen.

(Photo credit: Benzinga)

S&P Home Price Index keeps Climbing

May 1st, 2013 Comments off

CNNMoney informs MHProNews the S&P Case-Shiller index of home prices in 20 major markets rose 9.3 percent in Feb. over the last 12 months, an increase from January’s 8.1 percent rise, and the biggest gain in home prices since May 2006. Over a five-year period through May 2012, the index showed a decline almost every month, but since then the index has risen each month. Home price increases allow more people to refinance, which helps the underwater borrower. In addition, lower house payments allow borrowers to spend money on other items, which buoys the overall economy. However, analysts note even with the increase over the last 12 months, the index remains 28 percent below the index peak of 2006.

(Image credit: HousingWire)

Home Prices to Rise 3.3% Annually

March 4th, 2013 Comments off

According to nationalmortgagenews, Fiserv Case Shiller predicts by the end of the year home prices will be on the rise in every metro area in the U. S., and conditions point to a continuous recovery in the housing market through 2017. Fiserv says the data that shows price increases were up in 62 percent of the metro markets in Q3 2012 versus 12.5 percent in Q3 2011 indicates the market is in recovery mode. MHProNews has learned home prices will grow at an average rate of 3.3 percent each year through Q3 2017. However, as Fiserv Chief Economist David Stiff cautions, REOs and foreclosures may derail double-digit recovery in all markets until they are liquidated.

(Image credit: Fotosearch)

Millennials Looking at Homeownership

December 25th, 2012 Comments off

HousingWire reports a survey by Trulia revealed the Millennials, the 18-34 age group, were more optimistic than three older age groups that conditions will be conducive for them to purchase a home. ( See chart below.) MHProNews has learned the survey showed 31 percent of renters plan to buy a home, and 93 percent of Millennials see homeownership in their future. 43 percent of young adults are already homeowners. Jed Kolko, Trulia’s chief economist, says, “2013 could be the year that inventory turns around, just as 2012 was the year that prices started recovering. Homebuyers need inventory to choose from, and with fewer foreclosures on the market, new inventory will come from new construction or homeowners wanting to sell. Rising prices will bring out more sellers, especially if price increases lift them back above water.”

 

 

 

 

(Image credit: Fotosearch–Graphic credit: HousingWire)

 

 

 

Home Values Inch Upward

July 26th, 2012 Comments off

CNNMoney says according to Zillow, home values rose +0.2% year-over-year in the second quarter to a median of $149,300, the first annual increase since 2007. The real estate listing site also said prices increased 2.1% from the first quarter. Even though overall home prices continue to be 24% down since 2007, June marked the fourth successive month of home value increase. Similarly, the S&P/Case-Shiller home price index reports home prices in 20 major markets rose 1.3% in April, marking the first monthly increase in seven months. But Zillow does not include foreclosed sales, much like other home price indexes, which tend to show larger price declines. As MHProNews has learned, less than one-third of the 167 markets surveyed by Zillow registered annual home price increases, but these were overshadowed by the remaining two-thirds: Home values in Phoenix soared 12.1% year-over-year to a median value of $136,200, while Chicago sustained the largest loss, with median home values falling 5.8% to$158,600.

(Photo credit: Benzinga)

Florida Flooded with Shadow Inventory

May 8th, 2012 Comments off

Although Florida’s shadow inventory decreased nine percent from Q1 2010 to the end of 2011, the 550,000 units still account for almost one-third of the nation’s underwater inventory of 1.6 million properties, according to CoreLogic. In its study, Florida Realtors says 28 percent of the state’s homes as of Feb. 2012 have underwater mortgages. NationalMortgageNews says the inventory of properties for sale on the market is down from 12 months a year ago to 5.9 months now, but MHProNews.com has learned the shadow inventory may not fully clear until 2020. John Tuccillo, chief economist for Florida Realtors says, “As long as these properties are present on the market, they will compete with normal properties and put a brake on potential real estate price increases.”

(Image credit: News365Today)