Archive for the 'National Association of Realtors' Category

MIXED SIGNALS

Thursday, August 11th, 2016

Second quarter 2016 statistics have been released and they are not sending clear signals by any means.

On one hand, The National Association of Realtors reported that home prices rose in 83% of the nation’s 178 major real estate markets. Yet, according to CoreLogic Case Shiller Indices overall prices are now just 2% off the peak set in July 2006.

Homeownership rates are the lowest since the Census Bureau began tracking quarterly statistics in 1965 – now at 62.9%. Economists estimate 200,000 to 300,000 fewer US households are purchasing new homes annually, than during normal market conditions. The true American Dream of home ownership is in flux.

Personal wealth has always been driven for most by their homes. Retirement, tuition, vacations, and much more usually financed via home equity. Is there an entire generation of permanent renters out there? I hope not, for their sake.

First time home buyers are a critical piece of the puzzle and the government must support this vital future growth. Mortgage qualifications are a big part of today’s issues. Keep in mind, home sales create jobs and employ ancillary services from painting to landscaping.  It was home sales and the economic boost it provided that pulled us out of the worst economic downturn since the Great Depression.

How can lawmakers support growth from the bottom up?

US HOME SALES MARKET CONTINUES ITS ASCEND

Wednesday, July 8th, 2015

Several months back I blogged about how the housing market was going to be the main driver for the US economy, and fortunately for every homeowner, this has come to fruition.

 

NOW LET’S HEAR FROM THE EXPERTS!

 

The National Association of Realtors reported that sales of existing homes in May increased 9.2% from the same month for the prior year and new home sales soared 20% from a year ago to the highest level in 7 years!

 

Last month’s S&P/Case- Shiller Home Sale Price Index Report of March 2015 posted a 5% gain year over year. In Addition the April data released June 30th reported the 20 city index increased 4.9% year over year with a 1% gain month over month.

 

All 20 cities that made up the composite, increased in April before seasonal adjustments, with 12 cities up after said adjustments. “Home prices continue to raise across the country, but the pace is not accelerated”, quoting David M. Blitzer, Managing Director & Chairman of the Index Committee at S&P Dow Jones Indices. S&P/Case-Shiller Composite are a 20 city analysis which is widely referred to for national home prices.

 

First time home buyers made up 32% of all sales in May, a considerable leap from the 27% from the prior year, but still have room to grow back to prior averages. The ability to qualify for mortgages is an important factor in this environment as is rate increases. Consensus is that interest rates will rise in 2015 after being held at near zero rates, but the increases are expected to be at digestible amounts. 

 

All things considered, a continued slow and steady ascend looks to be the trajectory of the US Housing Market for 2015.

 

Judi A. Desiderio, Chief Executive Officer

JD@1TownandCountry.com                

631.324.8080 ext. 221

US HOME SALES

Sunday, September 23rd, 2012

Nationwide, home sales rose in August, to their highest levels in over two years.

The National Association of Realtors published a 7.8 % increase, to a seasonally adjusted rate of 4.82 million. This is the most monthly home sales since May of 2010.

Town & Country has been reporting, that, regionally, we began our ascend months ago..

Now, clearly, nationwide, the housing market has moved off the floor!

More good news came from the government, which reported that construction of single family homes nationwide rose to the strongest level in more than two years, this past August.

Wise will be the investors who have been in acquisition mode; sorry will be those who chose to sit on their hands. As when the demand returns to normal levels, inventory will be at ridiculously low levels.. and we all know what that means when the scales of supply & demand take that tact.. go ahead you can say it, we’re all thinking the same thing.. yes.. prices will go up .. and in this scenario, at impressive rates.

Have you pulled the trigger yet?

Home Prices Poised to Rise

Friday, February 24th, 2012

The price of anything is based on the scales of “supply and demand”.  That said, January’s U.S. Housing Reports by the National Association of Realtors indicates supply  at a 7 year low while demand at the highest level since May 2010.  The end result is the long awaited increase in home prices. 

While winter (January in particular)) is a slow season in a normal year (whatever that is) – the Report shows several indicators of a healthy housing market. 

Sales are up approximately 13% over the past 6 months.  Real estate sales increased 4.3% in January to a seasonally adjusted annual rate of 4.57 million.  Important to the recovery first time home buyers made for 1/3 of all sales.  All this increased activity on the “demand” side coupled with the lowest level of “supply” since March 2005 at 2.3 million is what positions the housing market for prices increases.

3RD STRAIGHT MONTH OF INCREASES IN HOME SALES SAY IT ALL

Tuesday, January 24th, 2012

The National Association of Realtors released their report on existing home sales, and for the 3rd straight month increases were posted month over month. Existing-home sales increased 5% in December from November. This is a seasonally adjusted annual rate of 4.61 million units.

An important statistic for any potential home buyer is that of inventory levels…they are the lowest since 2006 at 2.38 million or the statistical equivalent of a 6.2 month supply should the pace of sales remain at December's level. As we all know, the price of anything is dictated by the ration of supply & demand.

Bottom line, if you want to get in at the bottom, all indicators point to NOW!

IT’S TIME TO BUY THAT HOME

Tuesday, October 18th, 2011

Wall Street Journal's Jack Hough, titled his article on Saturday just that… "It's Time to Buy That House".
 

He discusses the National Association of Realtors, Housing Affordability Index, which Town and Country has written about several times this year, which was 183.7 in August. According to NAR a reading of 100 would indicate that the median income family with a 20% down payment can afford a mortgage on a median priced home.
 

Jack gives an example of a median priced home in greater Phoenix, purchasing it with 20%, at todays 4.12% interest rate, results in monthly payments less than half what the rental for the same home would be.

Of course, as we discussed many times in prior blogs, the banks are being piggy and not lending the money they should, even to qualified buyers. This must be rectified first, in order to move forward!
 

Personally, my sentiment has always been the same. I'd rather keep my money in "East End dirt", as I call it, rather than anywhere else on the planet!
 

As Kramer would say, "Buy, Buy, Buy".

HOME SALES NATIONWIDE INCREASE GREATLY

Thursday, July 28th, 2011

It never ceases to amaze me how the media can spin a story any way they want to… and when I see people “drinking the Kool-Aid” I want to scream “THINK!!!”.

So, National Association of Realtors (NAR), just released the June Pending Home Sales Report… and the news is BIG! But what am I reading on every business news website is reporting on the the 1 negative component.

CNBC & others are highlighting that 16% of Contracts of Sale for homes nation wide are not getting to the closing table where in a ‘normal year’ (what ever that is)—it’s 4% that don’t sit down to closing. Then the Chief Economist for NAR says he’s “baffled”… are you kidding??

I think he may be too far from the trenches. To further add insult to injury, the agents they interviewed attributed it to “consumer confidence”… are you kidding?? Are you still on the front line??? Then, of course, they mention the embarrassing stalemate on Capital Hill. Now that is HUGE economic news … but it can’t be blamed for contracts not closing in June… but you’d have to be pretty foolish not to get that! I guess when economic news is that BIG they blame everything on it…. But it’s NOT consumer confidence, it’s not the national debt ceiling,, and with all due respect—it’s not at all “baffling”. Plain & simple, it’s basically 3 elements that have compounded problems for any home buyer today… #1- Appraisals—Appraisers are being ULTRA conservative to the point of WRONG evaluations—but remember they were in the mix of “what went wrong leading to the housing bubble burst”… so now they are calling ALL housing markets “negative moving” when certain segments have proven stable & others even appreciating. #2- FINANCING—OMG—lenders went from offering ANYONE & EVERYONE mortgage money to wrapping a death grip around their funds.. #3- SHORT SALES—while locally a rare commodity,, on a national level they make up a significant segment of the market—the problem here— TIMING!!! Buyers can be in contract for over a year.. some wait months only to find their offer was rejected and another buyer got it for a few thousand more.. it’s like going to a new restaurant, that advertises for “good food at good prices” … you sit down with your family… wait forever,, service is the worst you’ve ever experienced and the appetizers come and they flat out stink.. after another torturously long wait, they come back & tell you there’s no more food… on your way out, you see another table that got your food, in less time, with better service… so you leave & tell everyone you know NOT to ever go to that restaurant –GET IT! So now short sales,, which nationally make up a significant segment of the market, are avoided like the plague. Just walk a mile in any successful Agent’s shoes and you’ll hear stories about contracts that fell apart for either 1,2 or 3!

They all, either missed, or chose NOT to report on the BIG NEWS…. The BIG NEWS is that NAR’s June Pending Home Sales Report showed a 30% INCREASE year over year-June 2010 to June 2011- that’s HUGE! and a 2.4% increase month to month May to June 2011.

Don’t they get it—the media has the power to spin any report or story any way they choose—read the facts—the #’s never lie!

FINALLY!!!!

Friday, July 1st, 2011

 

Finally the media is easing up on their Real Estate Market bashing!

 

In the past 2 days you’ve been reading & hearing Home Sales Prices Rose & Contracts for Home Purchases Rose.

The most recent was the report by the National Association of Realtors stating an 8.2% increase in the month of May from the previous month. The index was 88.8 from April’s 82.1, which was a seven month low. A reading of 100 is considered by most economists  to be a healthy housing market…. The last time it was at that level was April 2010.. but that was a false positive as it was at the end of the $8,000 Federal Tax Credit.

The real news is the National Housing Market is gradually ascending to normal levels.   

Nationwide, Existing Homes Sales Rise!

Thursday, April 21st, 2011

 

                According to the March 2011 report issued by the National Association of Realtors (NAR), existing home sales rose 3.7% to a seasonally adjusted annual rate of 5.1M in March from the 4.92M in February. These sales consist of closed transactions of single family residences, town houses, condos and co-ops.
           
Lawrence Yun, NAR chief economist added, “existing home sales have risen in six of the past eight months, so we’re clearly on a recovery path, with rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain – primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.”
           
Mr. Yun is referring to NAR’s housing affordability index which currently indicates principal and interest for the purchase of a median priced existing home is only 13% of the current gross household income which is the lowest rate since 1970 when NAR began monitoring the index.
           
Yet another reason to prove the timing is right to purchase a home – now if only the banks would get on board!

Median Home Sale Prices Nationwide Improve!

Friday, February 11th, 2011

 

National Association of Realtors, (NAR), based in Chicago, reported yesterday…what we in the business have been feeling since December…The housing market is improving!
            Nationwide, median home sale prices rose 0.2%.
            In the New York area median home sale prices jumped 4%, and in the Washington region, an incredible 8.1%!
            Here on Long Island the 4th Quarter median home sale price was a 1.4% increase from the prior year.
            Town & Country Real Estate’s 2010 Year End Hamptons Home Sales Report showed a median home sale price increase of 0.55% year over year, further conforming prices have stabilized and are beginning their next ascend. CLICK HERE to view all Home Sales Reports for the Hamptons, North Fork and Shelter Island.
            Free Market Inc. (FMI), published Feb 9, 2011, Housing Inflation Starting to Accelerate, predicting “prices to improve nicely in 2011-12”.
            Lastly, with interest rates on the rise, one has to question why anyone would wait any longer to pull the trigger. Every indicator is pointing to “BUY NOW!”
            The ship is getting ready to sail, are you on board?