Home Sales Rebound in Kickoff to Spring

Home Sales Rebound in Kickoff to Spring
National Association of REALTORS®
article by Daily Real Estate News | March 21, 2018

Feb-EHSLow inventory levels and accelerating home prices couldn’t put a lid on existing-home sales in February. Following two consecutive months of declines, existing-home sales rebounded 3 percent in February month over month and reached a seasonally adjusted annual rate of 5.54 million, the National Association of REALTORS® reported Wednesday. Sales of existing homes, which include single-family homes, townhomes, condos, and co-ops, are now 1.1 percent higher than a year ago.

“A big jump in existing-home sales in the South and West last month helped the housing market recover from a two-month sales slump,” says Lawrence Yun, NAR’s chief economist. “The very healthy U.S. economy and labor market are creating a sizable interest in buying a home in early 2018. However, even as seasonal inventory gains helped boost sales last month, home prices—especially in the West—shot up considerably. Affordability continues to be a pressing issue because new and existing housing supply is still severely subpar.”

5 Housing Indicators to Gauge the Market

Here’s a closer look at findings from NAR’s latest housing report.

Home prices: The median existing-home price for all housing types was $241,700 in February, up 5.9 percent from a year ago.

Inventories: The number of homes for sale at the end of February increased 4.6 percent to 1.59 million. That is still 8.1 percent lower than a year ago. Unsold inventory is at a 3.4-month supply at the current sales pace.

All-cash sales: All-cash sales comprised 24 percent of transactions in February, the highest since last February (27 percent). Individual investors tend to account for the biggest bulk of all-cash sales. They purchased 15 percent of homes in February, unchanged from a year ago.

Distressed sales: Foreclosures and short sales made up 4 percent of sales in February, down from 7 percent a year ago. Broken out, 3 percent of February sales were foreclosures and 1 percent were short sales.

Days on the market: Forty-six percent of homes sold last month were on the market for less than a month. Overall, properties stayed on the market for an average of 37 days in February, down from 45 days a year ago. “Homes for sale are going under contract a week faster than a year ago, which is quite remarkable given weakening affordability conditions and extremely tight supply,” says Yun. “To fully satisfy demand, most markets right now need a substantial increase in new listings.”

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 032118

Nationally: Why Sales Fell Short at Year’s End

Nationally: Why Sales Fell Short at Year’s End
National Association of REALTORS®   article by Daily Real Estate News | January 24, 2018

Existing-home sales in 2017 surged to the best year for sales in 11 years, the National Association of REALTORS® reported Wednesday.

Total existing-home sales—which include completed transactions for single-family homes, townhomes, condos, and co-ops—rose 1.1 percent in 2017 to a 5.51 million sales pace. The sales pace surpassed 2016’s 5.45 million, which had been the highest pace since 2006.

However, the end-of-the-year sales numbers were overcast somewhat by a slower sales pace in December. Existing-home sales decreased 3.6 percent in December month over month to a seasonally adjusted annual rate of 5.57 million.

“Existing sales concluded the year on a softer note, but they were guided higher these last 12 months by a multistreak of exceptional job growth, which ignited buyer demand,” says Lawrence Yun, NAR’s chief economist. “At the same time, market conditions were far from perfect. New listings struggled to keep up with what was sold very quickly, and buying became less affordable in a large swath of the country. These two factors ultimately muted what should have been a stronger sales pace.”

Closings scaled back in most areas of the country in December due to affordability and inventory woes, Yun adds. “Affordability pressures persisted, and the pool of interested buyers at the end of the year significantly outweighed what was available for sale,” Yun says.

Market Snapshot for December

Here are some key highlights from NAR’s latest housing report:

  • Home prices: The median existing-home price for all housing types in December was $246,800, which is 5.8 percent higher than a year ago.
  • First-time buyers: First-time home purchasers comprised 32 percent of sales in December, up from 29 percent in November.
  • Days on the market: Forty-four percent of homes sold in December were on the market for less than a month. Properties typically stayed on the market for 40 days in December, down from 52 days a year ago.
  • All-cash transactions: All-cash sales comprised 20 percent of transactions in December, which is down slightly from 21 percent a year ago. Individual investors, who make up the bulk of cash sales, accounted for 16 percent of the homes sold in December, up from 14 percent a year ago.
  • Distressed sales: Foreclosures and short sales made up 5 percent of sales in December, down from 7 percent a year ago. Broken out, 4 percent of December’s sales were foreclosures and 1 percent were short sales.
  • Inventory: Total housing inventory fell 11.4 percent in December to 1.48 million existing homes available for sale. Inventory is now 10.3 percent lower than a year ago. Unsold inventory is at a 3.2-month supply at the current sales pace, which is the lowest level since NAR began tracking such data in 1999.

“The lack of supply over the past year has been eye-opening and is why, even with strong job creation pushing wages higher, home price gains—at 5.8 percent nationally in 2017—doubled the pace of income growth and were even swifter in several markets,” Yun explains.

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Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 012418

Nationally: Existing-Home Sales Gains Strongest in Decade

Nationally: Existing-Home Sales Gains Strongest in Decade
National Association of REALTORS®   article by Daily Real Estate News | December 20, 2017

For the third consecutive month, existing-home sales were on the rise, with all major regions of the country except the West posting a “significant hike in sales activity” last month, the National Association of REALTORS® reported Wednesday.

dec16_DN_EHSInfographicTotal existing-home sales—which includes completed transactions for single-family homes, townhomes, condos, and co-ops—increased 5.6 percent in November to a seasonally adjusted annual rate of 5.81 million. Sales are now 3.8 percent higher than a year ago and are at the strongest pace since December 2006.

“Faster economic growth in recent quarters, the booming stock market, and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end,” says Lawrence Yun, NAR’s chief economist. “As evidenced by a subdued level of first-time buyers and increased share of cash buyers, move-up buyers with considerable down payments and those with cash made up a bulk of sales activity last month. The odds of closing on a home are much better at the upper end of the market, where inventory conditions continue to be markedly better.”

Here’s a closer look at November’s numbers:

Home prices: The median existing-home price for all housing types in November was $248,000, increasing 5.8 percent from a year ago.

Supply: Total housing inventory at the end of November dropped 7.2 percent to 1.67 million existing homes available for sale. Inventories are now 9.7 percent lower than a year ago. Unsold inventory is at a 3.4-month supply at the current sales pace. “The anticipated rise in mortgage rates next year could further cut into affordability if these staggeringly low supply levels persist,” Yun says. “Price appreciation is too fast in a lot of markets right now. The increase in home builder optimism must translate to significantly more new construction in 2018 to help ease these acute inventory shortages.”

Cash purchases: All-cash sales comprised 22 percent of transactions in November, up from 21 percent a year ago. That makes up the highest share of all-cash sales since May. Individual investors are the biggest source of cash sales. They purchased 14 percent of homes in November, unchanged from a year ago. “The elevated presence of investors paying in cash continues to add a layer of frustration to the supply and affordability headwinds aspiring first-time buyers are experiencing,” Yun says. “The healthy labor market and higher wage gains are expected to further strengthen buyer demand from young adults next year. Their prospects for becoming homeowners will only improve if more lower-priced and smaller-sized homes come onto the market.”

First-time home buyers: This group accounted for 29 percent of sales in November, down from 32 percent a year ago.

Days on market: Properties remained on the market for an average of 40 days in November, down from 43 days a year ago. Forty-four percent of homes sold in November were on the market for less than a month.

Distressed properties: Foreclosures and short sales made up 4 percent of sales, down from 6 percent a year ago. Broken out, 3 percent of sales in November were foreclosures while 1 percent were short sales.

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 122017

Nationally: Meager Sales Rebound Underscores Tough Market

Nationally: Meager Sales Rebound Underscores Tough Market
National Association of REALTORS® article by Daily Real Estate News | October 20, 2017

House 1028Following three consecutive months of declines, existing-home sales ticked up in September from the previous month—but ongoing inventory shortages, coupled with recent hurricanes, muted any annual gains, the National Association of REALTORS® reported Friday.

Total existing-home sales, which include single-family homes, townhomes, condos, and co-ops, increased 0.7 percent to a seasonally adjusted annual rate of 5.39 million in September, 1.5 percent below a year ago. September also marks the second slowest month for sales in more than a year, behind August, NAR notes.

September EHS Infographic #1“Home sales in recent months remain at their lowest level of the year and are unable to break through, despite considerable buyer interest in most parts of the country,” says NAR Chief Economist Lawrence Yun. “REALTORS® this fall continue to say the primary impediments stifling sales growth are the same as they have been all year: not enough listings—especially at the lower end of the market—and fast-rising prices that are straining budgets of prospective buyers.”

Sales activity likely would have been stronger if not for Hurricanes Harvey and Irma, which struck Texas and South Florida in late August and early September, Yun says, adding that both areas saw “temporary but notable declines.”

5 Stats to Gauge the Market
Key indicators from NAR’s September existing-home sales report:

Home prices: The median existing-home price for all housing types was $245,100, up 4.2 percent from a year ago. “A continuation of last month’s alleviating price growth, which was the slowest since last December, would improve affordability conditions and be good news for the would-be buyers who have been held back by higher prices this year,” Yun says.

Days on the market: Forty-eight percent of homes sold were on the market for less than a month. Properties typically stayed on the market for 34 days, down from 39 days a year ago.

All-cash sales: These transactions comprised 20 percent of sales, down from 21 percent a year ago. Individual investors accounted for the biggest bulk of cash sales; they purchased 15 percent of homes, which was the same level as a year ago.

Distressed sales: Foreclosures and short sales accounted for 4 percent of sales, unchanged from a year ago. Broken out, 3 percent of sales were foreclosures, and 1 percent were short sales.

Inventory: Housing inventory at the end of the month increased 1.6 percent to 1.9 million existing homes available for sale, but it still remains 6.4 percent lower than a year ago. Unsold inventory is at a 4.2-month supply at the current sales pace, down from 4.5 months a year ago.

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 102017


Kenneth Bargers, REALTOR® License 318311 ♦ Pilkerton Realtors License 257352
(615) 512-9836 cellular ♦ (615) 371-2474 office
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Nationally: Home Sales Dip as Buyers Get ‘Tripped Up’

Nationally: Home Sales Dip as Buyers Get ‘Tripped Up’
National Association of REALTORS®    article by Daily Real Estate News | July 24, 2017

Low inventory slowed down home sales last month, as buyers faced fewer options and record-high real estate prices, the National Association of REALTORS® reported Monday.

Regional Snapshot  Here’s a closer look at how existing-home sales fared across the country in June:
Northeast: Dropped 2.6 percent to an annual rate of 760,000 but are still 1.3 percent above a year ago. Median price: $296,300, up 4.1 percent from a year ago.
Midwest: Increased 3.1 percent to an annual rate of 1.32 million. Median price: $213,000, up 7.7 percent from a year ago.
South: Fell 4.7 percent to an annual rate of 2.23 million. Median price: $231,300, up 6.2 percent from a year ago.
West: Dropped 0.8 percent to an annual rate of 1.21 million but are still 2.5 percent above a year ago. Median price: $378,100, up 7.4 percent from a year ago.

Total existing-home sales, which include completed transactions for single-family homes, townhomes, condos, and co-ops, fell 1.8 percent in June to a seasonally adjusted annual rate of 5.52 million. Nevertheless, the pace of sales rose a modest 0.7 percent compared to a year ago.

“Closings were down in most of the country last month because interested buyers are being tripped up by supply that remains stuck at a meager level and price growth that’s straining their budget,” says NAR chief economist Lawrence Yun. “The demand for buying a home is as strong as it has been since before the Great Recession. Listings in affordable price ranges continue to be scooped up rapidly, but the severe housing shortages inflicting many markets are keeping a large segment of would-be buyers on the sidelines.”

June2017 national stats

Here’s a closer look at some of the top housing indicators in June from NAR’s latest report:

Home prices: The median existing-home price for all housing types was $263,800, up 6.5 percent from a year ago. It’s now the highest median price on record.

Inventories: The supply of existing homes available for sale dropped 0.5 percent to 1.96 million units. That’s 7.1 percent lower than a year ago; unsold inventory is at a 4.3-month supply at the current sales pace.

Days on the market: Fifty-four percent of sold homes were on the market less than a month. Properties took an average of 28 days to sell, down from a timeline of 34 days a year ago. Short sales spent the longest amount of time on the market at 102 days, foreclosures sold in 57 days, and nondistressed homes took a median of 27 days to sell.

All-cash sales: Cash transactions made up 18 percent of home sales, the lowest figure since 2009. Individual investors accounted for the biggest bulk of cash sales—13 percent—unchanged from a year ago.

Distressed sales: Foreclosures and short sales made up 4 percent of sales, which matches the lowest share recorded last September since NAR began tracking such data in October 2008. Foreclosures comprised 3 percent of sales, while short sales made up 1 percent.

First-time buyers: First-timers accounted for 32 percent of sales, down from 33 percent a year ago. “It’s shaping up to be another year of below-average sales to first-time buyers despite a healthy economy that continues to create jobs,” Yun says. “Worsening supply and affordability conditions in many markets have unfortunately put a temporary hold on many aspiring buyers’ dreams of owning a home this year.”

Source: National Association of REALTORS®; Daily Real Estate News 072417

Kenneth Bargers REALTOR® License 318311  |  Pilkerton Realtors License 257352
(615) 512-9836 cellular  •  (615) 915-5901 facsimile  •  kb@bargers-solutions.com email
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Home Sales Zoom to Highest Pace in Decade

Home Sales Zoom to Highest Pace in Decade
Article by Daily Real Estate News | April 21, 2017

This spring’s housing mantra: Going, going, gone! “Severe” housing shortages are prompting existing homes to sell significantly faster this year, propelling home sales to the highest pace in more than a decade, the National Association of REALTORS® reported Friday.

Publication1Strong sales gains in the Northeast and Midwest were behind most of the nationwide 4.4 percent month-over-month increase in existing-home sales in March. The West was the only major region of the U.S. to see a modest decline in sales activity last month.

“The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month,” says Lawrence Yun, NAR’s chief economist. “Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings in March for sales to muster a strong gain. Sales will go up as long as inventory does.”

Total existing-home sales—which include completed transactions for single-family homes, townhomes, condos, and co-ops—reached a seasonally adjusted annual rate of 5.71 million in March. The sales pace is 5.9 percent above a year ago. Further, existing-home sales are now the strongest month of sales since February 2007 (5.79 million).

Here’s a closer look at some of the key indicators from NAR’s latest housing report, reflecting March housing numbers:

Home prices: The median existing-home price for all housing types was $236,400, up 6.8 percent from a year ago when it averaged $221,400.

Days on the market: Properties stayed on the market for an average of 34 days in March, down significantly from 47 days a year ago. Short sales took the longest to sell at a median of 90 days in March; foreclosures sold in 52 days; and non-distressed homes took a median of 32 days—which is the shortest length of time since NAR began tracking such data in May 2011. Forty-eight percent of homes sold in March were on the market for less than a month.

All-cash sales: All-cash transactions comprised 23 percent of sales in March, down from 25 percent a year ago. Individual investors make up the biggest bulk of cash sales. They purchased 15 percent of homes in March, up from 14 percent a year ago.

Distressed sales: Foreclosures and short sales made up 6 percent of existing-home sales in March, down from 8 percent a year ago. Broken out, 5 percent of sales in March were foreclosures and 1 percent were short sales. On average, foreclosures sold for a discount of 16 percent below market value; short sales were discounted an average of 14 percent.

Inventories: Housing inventory at the end of March rose 5.8 percent to 1.83 million existing homes available for sale. Inventory is 6.6 percent lower than a year ago (1.96 million). Unsold inventory is now at a 3.8-month supply at the current sales pace.

“Bolstered by strong consumer confidence and underlying demand, home sales are up convincingly from a year ago nationally and in all four major regions despite the fact that buying a home has gotten more expensive over the past year,” Yun says.

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 042117

KENNETH BARGERS REALTOR® License 318311 | Pilkerton Realtors License 257352
(615) 512-9836 cellular • (615) 915-5901 facsimilekb@bargers-solutions.com email
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(615) 371-2474 office • (615) 371-2475 facsimile • 2 Cadillac Drive, Brentwood TN 37027 address

Where Homes Sold the Fastest This Winter

Where Homes Sold the Fastest This Winter
National Association of REALTORS® | January 25, 2017

nashvilleskyline175x233Homes across the country are selling faster than they were a year ago. Nationwide, properties stayed on the market for an average of 52 days in December, down from a 58-day average a year ago, the National Association of REALTORS® reported in its latest housing report Tuesday. Thirty-seven percent of homes sold in December were on the market for less than a month.

The following five metro areas had listings that stayed on the market the shortest amount of time in December, according to inventory data from realtor.com®:

  1. San Jose-Sunnyvale-Santa Clara, California: 49 days
  2. San Francisco-Oakland-Hayward, California: 50 days
  3. Nashville-Davidson-Murfreesboro-Franklin, Tennessee: 50 days
  4. Billings, Montana: 51 days
  5. Hanford-Corcoran, California: 51 days

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 012517

KENNETH BARGERS REALTOR® License 318311 | Pilkerton Realtors License 257352
(615) 512-9836 cellular • (615) 915-5901 facsimilekb@bargers-solutions.com email
bargers-solutions.com webkennethbargers.com blogSearch Properties
(615) 371-2474 office • (615) 371-2475 facsimile • 2 Cadillac Drive, Brentwood TN 37027 address