Showing posts with label gilbert az. Show all posts
Showing posts with label gilbert az. Show all posts

Wednesday, February 18, 2015

Both Home Prices and Affordability on the Rise

DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 18, 2015
The spring market will likely be a hotter one this year, as low interest rates and a healthier economy lure more home buyers to the marketplace. 
NAR's latest housing report:Tight Supplies Put Home Prices on the Move
“Interest rates below 4 percent, rising rents, and healthier local job markets are convincing more consumers to consider home ownership,” Chris Polychron, National Association of REALTORS® president, said in a recent news release showing fourth-quarter 2014 home prices moving up. 
An increase in the national family median income (to $65,782) mixed with low interest rates slightly improved affordability in the fourth quarter compared to the previous quarter, NAR reports. Affordability improved despite the national median single-family home price moving up to $208,700 in the fourth quarter, an increase of 6 percent year-over-year.
“Low interest rates helped preserve affordability last quarter, but it’ll take stronger income gains and more housing supply to help meet the pent-up demand for buying,” says Lawrence Yun, NAR’s chief economist.
To purchase a single-family home at the national median price, a buyer making a 5 percent down payment would need an income of $45,863. A 10 percent down payment would require an income of $43,449, and $38,621 would be needed for a 20 percent down payment.
The following were the five lowest-cost housing markets in the fourth quarter:
  1. Youngstown-Warren-Boardman, Ohio: $78,000
  2. Rockford, Ill.: $86,800
  3. Toledo, Ohio: $87,100
  4. Decatur, Ill.: $90,400
  5. Cumberland, Md.: $90,500


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Thursday, January 22, 2015

Housing Starts Reach Six Year Highs

DAILY REAL ESTATE NEWS | THURSDAY, JANUARY 22, 2015
Housing starts for single-family homes surged to the highest level in more than six-and-a-half years, a promising sign at the end of 2014, the Commerce Department reported Wednesday.
"The last piece of the economic puzzle is starting to come together now as housing construction is coming back. The housing market is continuing to heal," Chris Rupkey, chief financial economist at MUFG Union Bank in New York, told Reuters.
Homebuilding has been significantly low despite recent economic growth. Household formation has been running at about 500,000 a year – way below the 1-million mark that most economists consider healthy for the sector.
But the Commerce Department’s report on Wednesday hints at a turnaround: Single-family housing starts, the largest portion of the homebuilding market, rose 7.2 percent to a seasonally adjusted annual pace of 728,000 units in December. It’s the highest level since March 2008.
Meanwhile, groundbreaking on the volatile multi-family market fell slightly at 0.8 percent in December.
Overall, housing starts – reflecting the single-family and multi-family markets – increased 4.4 percent in December to a 1.09 million-unit rate.
Economists point to several factors as helping to lift the new-home market, notably the 30-year mortgage rate is down more than 80 basis points from early 2014, the government’s move to ease credit conditions, and overall wage and employment growth.
"This should allow for many more individuals to enter the market. We expect much of the improvement to occur in sales at the lower end of the market, which has been lagging the overall housing recovery," says David Nice, an economist at Mesirow Financial in Chicago.
Overall for 2014, groundbreaking on single-family and multifamily homes rose 8.8 percent to 1.01 million units – the highest since 2007.
However, the new-home market still has a ways to go. Building permits – a sign of future homebuilding activity – dropped 1.9 percent in December – mostly attributed to an 11.8 percent drop in the multi-family segment. Yet, single-family permits increased 4.5 percent, marking the highest level since January 2008. Building permits in the South in December reached their highest level since February 2008.
Source: “U.S. Single-Family Housing Starts Highest Since Early 2008,” Reuters (Jan. 21, 2015) and “Housing Starts End Year Solidly, Up 4.4%,” Dow Jones Business News (Jan. 21, 2015)


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Wednesday, January 21, 2015

4 Things You Don’t Know About Outdoor Kitchens

DAILY REAL ESTATE NEWS | WEDNESDAY, JANUARY 21, 2015
Now that the 2015 International Builders’ Show has partnered with the Kitchen & Bath Industry Show, there are plenty of examples of beautiful cooking spaces, indoors and out. But what about the numbers? The results of a new survey released at the show attempt to define what consumers want when it comes to outdoor kitchens.
The Great Outdoors
Dave Brown, a partner with Chicago-based ad firm HY Connect, surveyed consumers who have or would like to have outdoor kitchens in their homes. The study, which surveyed households making $150,000 or more in household income across the United States, was conducted in December 2014. He discussed the results of the survey at the first day of IBS/KBIS in Las Vegas on Tuesday.
A Growing Market
While only 4 percent of affluent households have outdoor kitchens today, 13.6 percent say they are planning on adding one in 2014. Brown says that the largest age group who don’t have these amenities but are hoping to incorporate them in their living space is between the ages of 45 and 54. He also adds that those who are interested in this particular amenity are more likely to have children in the home, noting, “These are active households. They’re doing stuff.”
The Difference Between Indoor and Outdoor
The needs and wants associated with an indoor kitchen don’t necessarily translate to that of an outdoor cooking space. “Outdoors is all about socializing… it is all about having fun and a great experience,” Brown says, noting that adequate seating space is one place where home owners tend to underestimate. Also, he adds that “storage in the indoor kitchen is huge [but] in terms of the outdoors, food prep becomes more important.”
Unexpected Features Top Favorites Lists
It may not seem that surprising that survey respondents consistently rated the outdoor kitchen their favorite room in the whole house. However, their favorite features weren’t the traditional items seen in most outdoor entertainment areas. The No. 1 item that current owners of outdoor kitchen regretted leaving out was a pizza oven. “What’s loved the most is what’s unique. Fountains, fireplaces, pools,” Brown says. He adds that his backyard pizza oven serves as a gathering place for guests to participate in the food prep process. “It’s what I call ‘kitchen karaoke.’”
Integration Is Key
Brown says that many home owners start small with the intention of adding on features later. But he notes that the most successful, best-loved outdoor kitchens tend to occur when the design process is holistic: “It feels like an entire outdoor room where I can have an event and not just a bunch of stuff stuck outside.”
—Meg White, REALTOR® Magazine


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Tuesday, January 20, 2015

More Home Owners Are Remodeling Again

DAILY REAL ESTATE NEWS | FRIDAY, JANUARY 16, 2015
A housing index that measures activity in the remodeling market reached a record-high in the final quarter of 2014, showing that home owners are once again sprucing up their homes following a large slowdown in remodeling activity in the years following the Great Recession.
Biggest Remodeling Payoffs:
The National Association of Home Builders’ Remodeling Market Index rose to 60 in the fourth quarter of 2014. Any reading above 50 indicates more remodelers are reporting higher market activity than those who say they are experiencing less activity.
“The recent pace and volume of business has been a boon to our remodeler members' confidence in the recovery of the housing market," says NAHB Remodelers Chair Paul Sullivan. "The upward trajectory of the RMI results over the past year has shown that home owners are ready, willing, and deciding to remodel."
All of the subcomponents measured within the index posted increases, including large additions, small remodels, and maintenance and repair.
"Even with some weakness in existing homes sales and house prices earlier in the year, remodelers are upbeat as 2014 closes," says NAHB Chief Economist David Crowe. "The consistent improvement in RMI results throughout 2014 are a sign of the gradual recovery of the remodeling market."


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Wednesday, November 12, 2014

Survey: More Americans Ready to Sell



DAILY REAL ESTATE NEWS | TUESDAY, NOVEMBER 11, 2014
More Americans are growing optimistic about home-price appreciation and selling, according to Fannie Mae's October 2014 National Housing Survey of 1,000 American adults.
Home-price expectations rose significantly in the latest survey, largely reversing a dip over the past four months, says Doug Duncan, Fannie Mae's chief economist. Also, the share of consumers who say now is a good time to sell a home reached another survey high this month.
"The narrowing gap between home buying and home selling sentiment may foreshadow increased housing inventory levels and a better balance of housing supply and demand," Duncan says. "These results may help drive a healthier housing market in 2015."
Duncan says that the latest survey showed that consumers are growing more optimistic about the housing market "in the face of broader improvement in economic sentiment. The share of consumers who expect their personal finances to get better is near its highest level since the survey's inception, while those expecting their finances to get worse reached a survey low."
The following are some additional highlights from the Fannie Mae survey:
  • Home buying and selling: The percentage of Americans who say now is a good time to buy a house dropped to 65 percent in October, but sellers were more optimistic. Those who say it's a good time to sell rose to 44 percent, marking a new all-time survey high.
  • Home prices: The average home-price expectation for the next 12 months increased to 2.8 percent. Forty-four percent of respondents now say they expect home prices to rise within the next 12 months.
  • Personal finances: Forty-five percent of respondents say they expect their personal financial situation to improve during the next 12 months, seven points higher than a year ago. The share expecting their financial situation to worsen, meanwhile, decreased to 10 percent last month.
  • Rent expectations: The percentage of respondents who expect home rental prices to rise fell by six percentage points to 49 percent in October.
Source: Fannie Mae


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Thursday, November 6, 2014

Purchase Applications Post First Rise in Weeks

DAILY REAL ESTATE NEWS | WEDNESDAY, NOVEMBER 05, 2014
Applications for home purchases, a leading indicator of home sales, increased 2.6 percent last week, even with a rise in interest rates, according to the Mortgage Bankers Association’s seasonally adjust index of mortgage activity, reflecting the week ending Oct. 31. The rise follows a 5 percent decrease the previous week. 
Refinance activity is diminishing. Refinancing posted a big surge last month due to interest rates hitting the lowest point of the year. But for the last two weeks, refinance activity has fallen, dropping 5.5 percent the prior week.
Due to the big drop in refinancing applications last week, overall mortgage application activity, which reflects both refinancing and home purchases, posted a 2.6 percent decrease in the week.
Meanwhile, the 30-year fixed-rate mortgage was on the rise last week, up four basis points, averaging 4.17 percent.
Source: “U.S. Mortgage Applications Fall in Latest Week: MBA,” Reuters (Nov. 5, 2014)


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Thursday, October 30, 2014

Housing’s Zombies Still Lurk, But Bite Lessens


DAILY REAL ESTATE NEWS | THURSDAY, OCTOBER 30, 2014
The number of homes in the foreclosure process that are vacant – known as zombie foreclosures – are lessening their trail of destruction on housing markets. Zombie foreclosures made up about 18 percent of all active foreclosures (or 117,298) in the third quarter, down from 23 percent (or 152,033) a year ago, according to RealtyTrac’s Third Quarter 2014 Zombie Foreclosure Report.
The homes are vacated by home owner before the foreclosures are completed.
“The most effective preventative vaccine for the blight caused by vacant, abandoned foreclosures has proven to be a short and efficient foreclosure process,” said Daren Blomquist, vice president at RealtyTrac. “Absent that, the best antidote for a zombie foreclosure infestation is a pro-active land bank program like that in Cleveland and more recently Chicago designed to aggressively take possession of vacant foreclosures and rehab or demolish them.”
The state that saw the largest declines in zombie foreclosures in the third quarter compared to a year ago was Missouri, where such foreclosures have fallen by 73 percent. Zombie foreclosures have also fallen in Virginia, by 59 percent; California (down 56 percent); Massachusetts (down 46 percent); New Hampshire (down 45 percent); and Illinois (down 44 percent).
At a metro-level among cities with populations over 200,000, 138 metros saw declines in zombie foreclosures in the third quarter, led by Portland, Ore. (down 53 percent); Cleveland (down 52 percent); Phoenix (down 52 percent); and Boston (down 52 percent).
But the zombies are still lurking in many housing markets.
“Markets with lengthy and lengthening foreclosure timelines have unintentionally created a zombie foreclosure breeding ground,” Blomquist says. "As we see a backlog of delayed distress finally hit the foreclosure pipeline in some of those markets, the problem is coming more to light.”
In the third quarter, 16 states saw increases in owner-vacated foreclosures compared to a year ago, with some housing markets seeing zombies swell by up to 75 percent in the past year. The states that saw the largest increases were New Jersey (up 75 percent); North Carolina (up 65 percent); Oklahoma (up 37 percent); and New York (up 30 percent).
The following are the top 10 markets for zombie foreclosures (including the total owner vacated):
  1. New York-Northern Jersey-Long Island, N.Y.-N.J.-Pa.: 13,366
  2. Miami-Fort Lauderdale-Pompano Beach, Fla.: 9,869
  3. Tampa-St. Petersburg-Clearwater, Fla.: 7,509
  4. Chicago-Naperville-Joliet, Ill.-Ind.-Wis.: 7,326
  5. Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.: 5,405
  6. Orlando-Kissimmee, Fla.: 3,732
  7. Jacksonville, Fla.: 2,462
  8. Las Vegas-Paradise, Nev.: 1,694
  9. Atlatna-Sandy Springs-Marietta, Ga.: 1,684
  10. Palm Bay-Melbourne-Titusville, Fla.: 1,384
Source: RealtyTrac


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Tuesday, October 28, 2014

Pending Home Sales Up, But Credit an Issue

DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 28, 2014
Pending home sales inched up slightly in September, and for the first time in 11 months, they were above year-ago levels, according to the National Association of REALTORS®' Pending Home Sales Index. However, tight credit conditions continue to be a barrier for many borrowers, NAR notes.
The Pending Home Sales Index rose 0.3 percent in September to 105. That's 1 percent above the September 2013 reading and the second-highest level since that time.
Opening the Credit Box
But sales are being held back because of potential buyers who are still unable to qualify for a mortgage. About 15 percent of REALTORS® in September indicated that the main reason for not closing on a deal was because their clients could not obtain financing.
Lawrence Yun, NAR's chief economist, says the final qualified residential mortgage rule will likely improve access to credit next year.
"The rule provides clarity for lenders and is a win for creditworthy consumers by ensuring they continue to have access to safe and affordable loan products without overly burdensome down payment requirements," Yun says.
Also, low mortgage rates, moderating price growth, and sustained inventory levels should help more buyers enter the market, Yun says.
"Housing supply for existing homes was up in September by 6 percent from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year," Yun notes.
In September, the Pending Home Sales Index rose in the South and Northeast but decreased in the Midwest and West.
Pending home sales were up by the highest percentage in the South — 1.4 percent month-over-month to a reading of 118.5. That was 1.7 percent above September 2013. Pending home sales also rose in the Northeast by 1.2 percent to 87.5 and are 2.9 percent above year-ago levels.
Meanwhile, pending home sales fell 1.2 percent in the Midwest to 101.2 in September and are now 4 percent below year-over-year levels for that region. Pending sales also fell in the West, dropping 0.8 percent last month to 101.3 but are still 3.6 percent above a year ago.


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New-Home Sales Inch to 6-Year High

DAILY REAL ESTATE NEWS | MONDAY, OCTOBER 27, 2014
For the third consecutive month, sales of newly built single-family homes edged up, “demonstrating steady growth in the housing market,” says Kevin Kelly, chairman of the National Association of Home Builders. However, housing analysts caution that the sector remains fragile.
New-home sales inched up slightly by 0.2 percent in September to a seasonally adjusted annual rate of 467,000 units—the highest level since June 2008, according to new data from the U.S. Department of Housing and Urban Development and U.S. Census Bureau. The median price of new homes in September was $259,000, a 4 percent drop year-over-year.
"We expect the housing market recovery to remain relatively gradual over the coming months," Gennadiy Goldberg, an economist at TD Securities in New York, told Reuters.
In September, the inventory of new homes rose to 207,000—a 5.3-month supply at the current sales pace. Most economists consider 6 months a healthy balance between supply and demand. The slow-growing inventory of new homes points to builders gaining confidence in the market, says NAHB Chief Economist David Crowe.
Regionally, new-home sales rose the most in the Midwest, posting a 12.3 percent gain month-over-month, followed by a 2 percent rise in the South. Sales stayed flat in the Northeast and fell 8.9 percent in the West.
The government revised August’s reported new-home sales figures, reflecting the fact that sales actually posted a sharp decline last month, as opposed to what had been originally reported. August’s sales numbers were revised down to 466,000 units from the originally reported 504,000 units.


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Friday, October 24, 2014

Rates Haven’t Been This Low Since 2013

DAILY REAL ESTATE NEWS | FRIDAY, OCTOBER 24, 2014
The 30-year fixed-rate mortgage took another dip this week, staying below the 4 percent threshold and keeping borrowing costs at the lowest rate in more than a year. It marks the fifth consecutive week that mortgage rates decreased.
Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 23:
  • 30-year fixed-rate mortgages: averaged 3.92 percent, with an average 0.5 point, reaching a new low for the year and dropping from last week’s 3.97 percent. Last year at this time, 30-year rates averaged 4.13 percent.
  • 15-year fixed-rate mortgages: averaged 3.08 percent, with an average 0.5 point, dropping from last week’s 3.18 percent average. A year ago, 15-year rates averaged 3.24 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.91 percent, with an average 0.5 point, dropping from last week’s 2.92 percent average. Last year at this time, 5-year ARMs averaged 3 percent.
  • 1-year ARMs: averaged 2.41 percent, with an average 0.4 point, rising from last week’s 2.38 percent average. A year ago, 1-year ARMs averaged 2.60 percent.
Source: Freddie Mac


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Thursday, October 23, 2014

Home Equity Rebound Slows its Pace

DAILY REAL ESTATE NEWS | THURSDAY, OCTOBER 23, 2014
More home owners are eeking out equity again on their properties, but with slowing home appreciation, millions of home owners may still be at risk of foreclosure.
Equity-rich properties – those with at least 50 percent equity – grew to 10.8 million, or 20 percent of all properties with a mortgage, in the third quarter, according to RealtyTrac’s third quarter U.S. Home Equity & Underwater Report. That percentage is up from 19 percent of properties in the second quarter of 2014.
Another 8.5 million properties – or 16 percent of all homes with a mortgage -- are teetering on the edge of equity, with between 10 percent of negative equity and 10 percent of positive equity.
But many home owners have yet to regain equity. There are 8.1 million U.S. residential properties seriously underwater – in which the combined loan amount secured by the property is at least 25 percent higher than the property’s estimated market vale, according to RealtyTrac. The number of properties with negative equity has fallen to the lowest level since RealtyTrac began tracking such data in 2012. The peak was in the second quarter of 2012 when 12.8 million properties – or 29 percent of all properties with a mortgage – were seriously underwater.
“The decrease in underwater properties is promising but the estimated $1.4 trillion in negative equity means that the flood waters are not receding as quickly as they were before, corresponding to slowing home appreciation,” says Daren Blomquist, vice president at RealtyTrac. “Slower price appreciation means 8 million home owners seriously underwater could still have a long road back to positive equity.”
To paint a picture of the typical underwater home owner, RealtyTrac found it’s often a home owner who bought or refinanced during the housing bubble years (from 2004 to 2008), owns a home worth less than $200,000, and who lives in the Sun Belt or Rust Belt.
On the other hand, the highest percentage of equity rich home owners were those who bought or refinanced between 1994 and 1998; have properties valued at $500,000 or more; and tend to live in New York, California, and Washington, D.C.
The States With the Highest Levels of Negative Equity
The following states had the highest percentage of residential properties seriously underwater in the third quarter, according to RealtyTrac:
  • Nevada: 31%
  • Florida: 28%
  • Illinois: 26%
  • Michigan: 25%
  • Rhode Island: 22%
The metro area (with population of 500,000 or more) with the highest percentage of properties seriously underwater was Las Vegas at 34 percent.
The Equity-Rich Markets
The following metros had the highest percentage of equity-rich properties – those with at least 50 percent equity or more – during the third quarter:
  • San Jose, Calif.: 45%
  • San Francisco: 41%
  • Honolulu: 36%
  • Los Angeles: 32%
  • New York, N.Y.: 31%
Source: RealtyTrac


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5 Markets to Watch for Investors in 2015

DAILY REAL ESTATE NEWS | THURSDAY, OCTOBER 23, 2014
Typical investor magnets like San Francisco, New York City, Boston, and Seattle are getting new competition from some rapidly growing markets. The coastal cities are no longer the top choices for investors: Other markets are stepping in as the ones to watch for 2015, according to Emerging Trends in Real Estate 2015, a report co-published by PwC US and the Urban Land Institute. The report is based on a survey of more than 1,000 leading real estate experts, including investors, fund managers, developers, property companies, lenders, brokers, advisers, and consultants.
Houston and Austin edged out San Francisco for the top spots this year, proving to be the top picks for real estate prospects in 2015. Charlotte, N.C., nabbed a seventh place spot on the ranking list, edging out Seattle and Boston; while Nashville, ranked No. 14, topped Manhattan.
“Investors are looking closely at opportunities beyond the core markets,” says ULI Global Chief Executive Officer Patrick L. Phillips. “These cities are positioning themselves as highly competitive, in terms of livability, employment offerings, and recreational and cultural amenities,”
The report ranked the following five markets as the ones “to watch in 2015”, based on survey respondents and their outlook on each market:
  1. Houston: “Investors believe that the energy industry will continue to drive market growth and that will support real estate activity in 2015,” the report notes. “Houston was ranked number one in both investment and development expectations for next year; housing market expectations are ranked number two.”
  2. Austin: “Interviewees like the industrial base, the appeal to the millennial generation, and the lower cost of doing business in Austin,” the report notes. “The market was a top choice for both the office sector and the single-family housing sector and the number two ranked market for retail.”
  3. San Francisco: Falling from its No. 1 spot last year, survey participants note the city is still poised for growth but other cities are catching up. “The strong local economy and improved domestic and international travel have made San Francisco the number one choice for hotel investment in 2015,” the report notes. “Respondents ranked the office market number three and the retail market number four.”
  4. Denver: Proving to be one of the most popular markets with the millennial generation, “Denver’s industry exposure to the technology and energy industries has also attracted investor interest,” according to the report. “The results of the survey put Denver retail at number five and office at number six.”
  5. Dallas/Fort Worth: “The market continues to be attractive to real estate investors because of its strong job growth, which benefits from the low cost of living and doing business,” according to the report. “Single-family housing in the market is the highest ranked property sector – and it also has the highest ranked industrial sector (number four) among the top five markets from this year’s survey.”



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Wednesday, October 22, 2014

More Owners Delay Remodeling Projects, Again

DAILY REAL ESTATE NEWS | WEDNESDAY, OCTOBER 22, 2014
Remodeling and home improvement spending posted a strong rebound last year, but the rebound was short-lived, a new report says. Remodeling projects and expenditures are back on the decline this year as housing market conditions and fading tax incentives cause more home owners to delay projects once again. 
Getting Back Remodeling Bucks
The primary driver of home remodeling expenditures is the pace of single-family existing home sales, writes Robert Dietz, an economist with the National Association of Home Builders, in an article at U.S. News & World Report. Between the summer of 2013 and March of this year, existing-home sales fell, Dietz says, despite a recent rebound. As such, Dietz says the remodeling market has seen declines in the annual pace of improvement spending since December 2013. 
“Existing home owners are most likely to improve a home prior to placing the home on the market, and new home owners find the best time to make substantial changes to a home is immediately after purchase,” Dietz notes. 
The pace of remodeling in August was down more than 10 percent year-over-year, according to U.S. Census Bureau data. 
Dietz points not only to the stall in home sales but also to the expiration at the end of 2013 of a set of federal energy-efficiency tax credits for the slowdown in remodeling expenditures. The tax credits helped home owners to offset the cost of replacing older windows, hot water tanks, and appliances with new energy-efficient models. 
“Despite these economic and policy headwinds, the prospects for the remodeling sector appear more positive for 2015,” Dietz notes. An index of professional remodeler sentiment shows a gain in confidence, particularly as the existing single-family sales market improves. The National Association of REALTORS® is forecasting a 7.7 percent growth in existing sales in 2015.
“Underlying these market improvements is the fact that our nation’s housing stock continues to age, and aging homes require upgrading and modification,” Dietz notes. The median age of owner-occupied homes was 35 years old, according to the 2011 American Housing Survey (in the 1985 AHS survey, the median age was 23). 
Source: “In Need of Housing Improvement,” U.S. News & World Report (Oct. 20, 2014)


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September Marked 2014 High in Home Sales

5DAILY REAL ESTATE NEWS | WEDNESDAY, OCTOBER 22, 2014
Existing-home sales bounced back in September, surging to the highest annual pace of the year, according to the latest report from the National Association of REALTORS®. All regions except for the Midwest reported gains in sales last month.
The Future's So Bright
“Low interest rates and price gains holding steady led to September’s healthy increase, even with investor activity remaining on par with last month’s marked decline,” says Lawrence Yun, NAR’s chief economist. “Traditional buyers are entering a less competitive market with fewer investors searching for available homes, but may also face a slight decline of choices due to the fact that inventory generally falls heading into winter.” 
Existing-home sales rose 2.4 percent in September, reaching an annual rate of 5.17 million. Sales are at the highest pace of 2014 but remain 1.7 percent below the 5.26 million level from last September, NAR reports.  
Snapshot of Housing Indicators for September
  • Home prices: The median existing-home price was $209,700 in September, 5.6 percent higher than a year ago. It is the 31st consecutive month for year-over-year price gains. 
  • Days on market: Homes stayed on the market longer in September — 56 days, compared with 53 days in August. Short sales remained on the market for a median 116 days in September, while foreclosures sold in 59 days. About 35 percent of homes sold in September were on the market for less than a month, according to NAR. 
  • Inventory: Total housing inventory dropped 1.3 percent to 2.30 million existing-homes for-sale, representing a 5.3-month supply at the current sales pace. Unsold inventory is 6 percent higher than a year ago.
  • All-cash sales: Sales involving all cash made up 24 percent of transactions in September, down from 33 percent compared to a year prior. 
  • Distressed homes: Foreclosures and short sales rose slightly in September to 10 percent, from 8 percent in August. Distressed sales, however, are down from 14 percent a year ago. Foreclosures and short sales in September sold for an average discount of 14 percent below market value.
By the Region
Here’s an overview of how existing-home sales performed across the country in September: 
  • Northeast: Existing-home sales rose 1.5 percent to an annual rate of 680,000, but were 1.4 percent below sales levels from a year ago. Median price: $249,800 (up 4.8 percent from a year ago)
  • Midwest: Existing-home sales fell 5.6 percent to an annual rate of 1.17 million, and remain 4.9 percent below September 2013 levels. Median price: $165,100 (up 4.9 percent from a year ago)
  • South: Existing-home sales rose 5 percent to an annual rate of 2.12 million, and are 1.4 percent higher than September 2013. Median price: $180,900 (up 5.1 percent from a year ago)
  • West: Existing-home sales surged 7.1 percent to an annual rate of 1.20 million, remaining 4 percent below levels from a year ago. Median price: $294,200 (up 4 percent from a year ago)


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Tuesday, October 21, 2014

10 Best ZIP Codes in 2014

DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 21, 2014
The ZIP code of the country's best place to call home is 20004, according to real estate company Movoto.com. Right smack in the heart of the nation's capital, it's where you'll find portions of the Smithsonian museums, Ford's Theatre, and it's close to the White House. The ZIP code boasts an average household income of $131,111 and an unemployment rate of 1.93 percent.
It's All About the ZIP
Movoto ranked the following top 10 ZIP codes top for 2014:
  1. 20004: Washington, D.C.
  2. 77005: Houston
  3. 98039: Medina, Wash.
  4. 95497: Sea Ranch, Calif.
  5. 11930: Amagansett, N.Y.
  6. 92121: San Diego
  7. 60603: Chicago
  8. 60602: Chicago
  9. 67230: Wichita, Kan.
  10. 64113: Kansas City, Mo.
To compile its rankings, Movoto factored in data from the U.S. Census' American Community Survey, researching ZIP codes for median household income (the higher, the better); unemployment rate (the lower, the better); average commute time (the lower, the better); median rent (higher rents indicate a more desirable area); median house worth (higher values indicate a more desirable area); and more.
Source: “These Are the Best ZIP Codes in America,” Movoto.com (Sept. 30, 2014)


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Markets Still Plagued by Inventory Crunch



DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 21, 2014
The number of homes for sale is still low in many markets: Supply nationwide in September was at five and a half months; most economists consider a normal level to be six to seven months. The supply of new homes was even lower, at nearly five months, according to realtor.com®'s September National Housing Trend Report.
Inventories Show Signs of Improvements
"To truly relieve the inventory shortage on a sustained basis, new-home construction needs to rise by at least 50 percent from the current levels," says Lawrence Yun, chief economist for the National Association of REALTORS®. 
The following markets have posted some of the biggest drops in listings year-over-year:
  • Las Vegas: -37.9%
  • San Jose, Calif.: -36.2%
  • Columbus, Ohio: -29%
  • Cincinnati: -26.5%
  • Houston: -25.2%
  • Washington, D.C.: -25%
  • San Francisco: -23.4%
  • Chicago: -22.8%
Meanwhile, in some markets, home buyers have found more choices in the past year. These markets have seen the biggest growth in inventory levels year-over-year:
  • Honolulu: +27.5%
  • Orlando, Fla.: +25.8%
  • Miami: +22%
  • Charleston, W.Va.: +20.1%
Nationwide, the median age of inventory fell slightly year-over-year in September due to the reduced number of homes on the market, according to realtor.com®. Homes spent about 90 days on the market in September, three days less than a year ago.
Also, median listing prices held steady for the fourth consecutive month, maintaining a 7.7 percent gain year-over-year. The median list price in September was $214,900 nationwide.


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