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Posts Tagged ‘tax credit’

Total Home Sales Rise in April

May 23rd, 2013 Comments off

MHProNews has learned from CNNMoney the National Association of Realtors (NAR) released figures today that show total home sales rose 0.6 percent in April to just under an annual pace of five million, up nearly ten percent from a year ago. Lawrence Yun. Chief economist for NAR, noting consumer traffic is up 31 percent over a year ago, resulting in greater demand than actual sales, says tight credit and low inventory has prevented sales from being well over five million. The median price of a home sold in April rose four percent over March to $242,600, and nine percent over a year ago. Inventory on the market represented a 5.2 month supply at the current pace of sales, up over March but below the 6.6 month supply a year ago. Distressed sales represent 18 percent of all home sales, a drop from 28 percent a year ago. The pace of new home sales has been increasing every month for almost two years, and is at the strongest rate since Nov. 2009 when sales were spurred by a home-buyers tax credit.

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Housing Economists Project Positive News

May 21st, 2013 Comments off

Ahead of official forecasts by the National Association of Realtors (NAR) and the Commerce Dept., nationalmortgagenews informs MHProNews a survey of economists by Bloomberg reports new and existing home sales rose to a seasonally-adjusted-annual-rate (SAAR) of 5.41 million in April. This marks the highest number since Nov. 2009 when the first-time homebuyers tax credit expired, and third highest since Aug. 2007, right before the recession hit. The economists project sales of previously-owned homes hit 4.98 million SAAR, also the highest since Nov. 2009; and newly-built homes rose to 425,000 SAAR, a three month high. The NAR’s report on previously-owned homes is due out May 22, while the Commerce Dept. will release figures on newly-built homes the following day. The housing market’s rebound is considered the most effective spur to the economy as many other industries lag.

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Feb. Marks Best Home Sales since 2009

March 22nd, 2013 Comments off

Very much in line with what we have been hearing, CNNMoney tells MHProNews the National Association of Realtors reports the sale of existing homes reached a seasonally-adjusted annual rate (SAAR) of 4.98 million in February, ten percent above February 2012 but only slightly better than January 2013. It was the best month since November of 2009, but at that time the $5,000 tax credit was in place. February’s median sales price was $173,600, an increase of 12 percent from a year ago. The inventory of homes on the market rose for the first time since July, indicating people are taking advantage of the increase in home prices. Distressed home sales accounted for 25 percent of home sales in February, below the 34 percent recorded a year earlier. The improving market numbers result from the increase in employment, low interest rates, and the drop in foreclosures.

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Tax Credits for Factory-built Homes Reinstated

January 2nd, 2013 Comments off

The Manufactured Housing Institute informs MHProNews that the passage of the legislation by Congress to avert the “fiscal cliff” included extension of tax credits for Energy Star manufactured and modular homes. The New Energy Efficient Home Credit expired at the end of 2011 and has been extended to Dec. 31, 2013. It provides builders of Energy Star-qualified manufactured homes with a tax credit of $1,000 (per home) and builders of modular homes with a credit of $2,000 (per home). MHI President and CEO Richard Jennison stated that “MHI is very grateful that Congress and the Administration recognize the importance in ensuring that energy-efficient Energy Star manufactured and modular homes remain affordable for millions of low- and moderate-income families across the nation. Extension of this vital tax credit guarantees that manufactured and modular homes can remain on the cutting-edge of energy efficiency without sacrificing their affordability.” He added MHI will continue seeking resources for builders of energy efficient HUD Code and Mod homes.

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Pending Home Sales Rise

December 28th, 2012 Comments off

HousingWire informs MHProNews pending home sales hit a 2.5 year high in Nov., rising 1.7 percent above the index score of 104.6 in Oct. 2012 to 106.4 last month. According to the National Association of Realtors (NAR) Pending Home Sales Index, the index score is 9.8 percent above last year’s index of 96.9. The index did reach 111.3 in April 2010, but that was due to the tax credit incentive available at the time. Lawrence Yun, NAR’s chief economist, says, “Home sales are recovering now based solely on fundamental demand and favorable affordability conditions.”

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New Home Sales Up 15% over Year Ago

December 27th, 2012 Comments off

CNNMoney reports the Census Bureau says new home sales hit a seasonally-adjusted annual rate (SAAR) of 377,000 in Nov., an increase over Oct. of 4.4 percent and a rise of 15 percent over Nov. 2011. The highest rate of new home sales since April 2010 when the $8,000 tax credit pumped up sales, other signs indicate a burgeoning return of the housing market: Low interest rates, increased existing home sales, a drop in foreclosures, lower unemployment, and fewer available homes, which has increased home values. The median price of a new home sold in Nov. is up 14.9 percent, to $246,200, over Nov. 2011. As MHProNews noted Dec. 26, 2012, the stock prices of several leading home builders has increased substantially over the last 12 months.

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Home Prices Post Largest Gain in Two Years Plus

November 30th, 2012 Comments off

According to the S&P/Case-Shiller Index, home prices registered the largest gain in over two years, moving up 3.6 percent in the third quarter over Q3 2011. CNNMoney reports the increase was the biggest since the second quarter of 2010 when the homeowner’s tax credit of up to $8,000 ended. A drop in foreclosures to a five-year low, an improving jobs market and record low interest rates have sparked home sales and home building. Dean Baker, of the Center for Economic and Policy Research, says “We’ll probably do better than inflation for the next few years, and people who have been underwater on their mortgage will get out from that, and build some equity.” Only Chicago and New York of the 20 markets surveyed showed a modest price decline from a year ago. As MHProNews has learned, Phoenix, AZ, which was one of the hardest hit cities following the housing crash, experienced the largest increase, with prices 20.4 percent higher than last year.

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Home Sales Slowly Climbing

September 19th, 2012 Comments off

The National Association of Realtors (NAR) reports in the Christian Science Monitor its index of existing home sales contracts increased 2.4% in July of this year to 101.7, higher than June’s reading of 99.3. It is the highest number since April 2010 when the government’s home-buying tax credit ended. Even though there is a month or two lag between a contract and a completed sale, a 100 reading indicates a healthy market. The lowest point was in June 2010 when the index bottomed at 75.88. The NAR said sales contracts rose in all parts of the country except the West where the housing inventory shortage is the greatest. Some economists predict while sales of previously existing homes will rise eight percent this year to approximately 4.6 million, that figure is below the 5.5 million a year considered healthy. But as MHProNews is learning, the housing market is slowly beginning to recover.

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Housing Industry Continues to Remove Bandages of Bruising Market

March 22nd, 2012 Comments off

In an article by Reuters in the NYTimes, MHProNews.com has learned home building permits rose 5.1 percent in February, giving rise to economists predictions that home building could contribute to economic growth for the first time since 2005. The adjusted annual rate (AAR) of 717,000 units last month, the highest since October 2008, exceeded economists’ expectations of 690,000 AAR. The large stock of unsold homes on the market is depressing prices, but housing starts rose in Feb. 2012 34.7 percent over Feb. 2011, the largest year-to-year gain since April 2010 when the tax credit expired. Construction of multifamily housing jumped 21.1 percent last month. Eric Green, chief economist at TD Securities in New York says, “Housing is being nursed back to health, but getting out of rehab takes time.”

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Inventory and Sale of New Homes Drop

February 27th, 2012 Comments off

The inventory of new homes on the market hit a new low in January, sinking to 151,000 units, equivalent to a 5.6 month supply, while sales of newly-built single-family homes in January declined by .09 percent from Dec. 2011. According to data from the U.S. Commerce Dept. and HUD, the National Association of Home Builders (NAHB) states the seasonally-adjusted rate hit 321,000 units in Jan. Chairman of the NAHB Barry Rutenberg says outside of Dec. 2011, this is the best sales pace since April 2010 when the tax credit was available to home buyers. NAHB Chief Economist David Crowe, noting new home sales climbed 3.5 percent Jan. 2011 to Jan. 2012, says, “This is indicative of the incremental, steady progress that the market is making toward recovery in conjunction with modest economic and job growth. But the challenges posed by tight credit conditions and appraisal issues continue to slow that process.”

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