Upbeat Sellers Show Readiness to Make a Move

Upbeat Sellers Show Readiness to Make a Move
National Association of REALTORS® | June 21, 2018

Home prices are climbing across the country, and that has made homeowners more bullish when it comes to the prospects of selling. Seventy-five percent of more than 2,700 households recently surveyed say it’s a good time to sell a house; 68 percent say it’s a good time to buy, according to the National Association of REALTORS®’ second quarter Housing Opportunities and Market Experience (HOME) survey.

“Hopefully this strong seller optimism will lead to an increase in inventory later on in the year,” says Lawrence Yun, NAR’s chief economist.

Fifty-five percent of consumers say they believe that home prices will continue to increase in their communities over the next six months, up from the previous quarter (53 percent), according to NAR’s report.

In the second quarter, however, optimism for buying stayed stagnant. Thirty-nine percent of consumers strongly agree now is a good time to buy, while 29 percent moderately agree. A decreasing number of renters are upbeat about buying, dropping from 55 percent in the first quarter to now 49 percent in the second quarter. Optimism for buying is highest among older buyers 65 or over, as well as those living in the South and Midwest regions, the report found.

“Inventory remains the driving force in real estate, affecting everything from rising prices to household formation,” Yun says. “Improving supply conditions is critical to improving buyer optimism and helping to remove some of the barriers holding back potential first-time buyers.”

Overall, consumers are more optimistic about the economy. Fifty-eight percent of households surveyed said they thought the economy was improving, with people in rural areas the most upbeat about economic conditions, according to the survey.

Their optimism over the economy has also helped more consumers believe that they would have an easier time to obtain a mortgage. “This is most likely a reflection of the current positive outlook on the direction of the economy,” Yun says. “Healthy job creation and faster wage growth mean that homeownership is viewed as a more attainable goal than it was a year ago.”

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Source: “Q2 Housing Opportunities and Market Experience (HOME) Survey,” National Association of REALTORS® (June 21, 2018); REALTOR® Magazine 062118

States Where Owners Are Likely to Move

States Where Owners Are Likely to Move
ATTOM Data Solutions   article by Daily Real Estate News | May 17, 2018

Nevada has the highest share of homeowners who are likely to move, according to a new report released by ATTOM Data Solutions. Homeowners in Delaware, Florida, Colorado, and Virginia rounded out the top five places where homeowners are showing the greatest likelihood of moving.

ATTOM Data Solutions, a real estate research firm, culled data from purchase loan applications on residential real estate transactions for its first quarter Pre-Mover Housing Index. The index is based on the ratio of homes with a “pre-mover” flag during a quarter to total single-family homes and condos in a geographic area. An index reading above 100 indicates a home will likely be sold in the next 90 days in a given market.

By metro area, the top 10 highest pre-mover locales are in: Colorado Springs, Colo. (280 reading); Manchester-Nashua, N.H. (213); El Paso, Texas (213); Washington, D.C. (208); Orlando, Fla. (201); Tampa-St. Petersburg, Fla. (200); Las Vegas (199); Charleston, S.C. (198); Nashville, Tenn. (185); and Jacksonville, Fla. (184).

“The pre-mover index provides insight into which markets are poised to see a high percentage of homeowners moving this spring and which markets are likely to see a high percentage of homeowners staying put,” says Daren Blomquist, senior vice president at ATTOM Data Solutions. “Markets with a high pre-mover index tend to be in areas where homes are still somewhat reasonably priced and have a growing job market, allowing for greater upward mobility. Markets with a low pre-mover index tend to be in areas with a struggling job market or with home prices that are out of reach for the average wage earner.”

The metros with the lowest pre-mover index were Cleveland (46 reading); Rochester, N.Y. (48); Boston (49); Pittsburgh (51); and Providence, R.I. (53).

Where Homeowners Are Moving in Q2 2018


Source: ATTOM Data Solutions; REALTOR® Magazine Online, Daily Real Estate News 051718

Fannie: Housing Confidence Hits Record High

Fannie: Housing Confidence Hits Record High
Fannie Mae   article by Daily Real Estate News | May 8, 2018

Fannie Mae LogoOptimism for selling a home has helped propel a housing confidence index by Fannie Mae to an all-time high last month. Fannie Mae’s Home Purchase Sentiment Index rose 3.4 points in April to a record 91.7. Last month’s survey posted increases in five of six components that set out to measure Americans’ perceptions of the housing market. Consumers were also upbeat about home prices, job security, and their own personal finances.

“The latest HPSI reading edged up to a new survey high, showing that consumer attitudes remain resilient going into the spring/summer buying season,” says Doug Duncan, Fannie Mae’s chief economist. “High home prices and good economic conditions helped push the share of Americans who think it’s a good time to sell to a fresh record high. However, the upward trend in the good-time-to-sell share seen since last spring has done little to release more for-sale inventory. The tightest supply in decades, combined with rising mortgage rates from historically low levels, will likely remain a hurdle for mobility and a persistent headwind for home sales.”

A separate survey released Monday by the polling firm Gallup showed that the majority of U.S. adults—64 percent—continue to believe home prices in their local area will increase over the next year, the highest percentage since before the housing market crisis and the Great Recession in the mid-2000s.

Home shoppers do appear to be getting frustrated. The only component of Fannie Mae’s index that saw a decrease last month was the number of consumers who said now is a good to buy, which dropped three percentage points compared to March.

Here’s a closer look at some of the findings from Fannie Mae’s April Home Purchase Sentiment Index, based on the responses of about 1,000 consumers:

  • 29%: The net share of Americans who say it’s a good time to buy a home, a 3 percentage point drop from last month.
  • 45%: The net share of those who say it’s a good time to sell, a 6 percentage point month-over-month increase and new survey high.
  • 49%: The net share of Americans who say home prices will go up, a 7 percentage point month-over-month increase.
  • 76%: The net share of consumers who say they are not concerned about losing their job, up 5 percentage points from March.
  • 18%: The net share who say their household income is significantly higher than it was 12 months ago, up 1 percentage point from last month.

Source: Fannie Mae and “Americans Haven’t Been This Optimistic About House Prices Since Just Before the Crash,” MarketWatch (May 7, 2018); Daily Real Estate News 050818

Greater Nashville April Home Sales Bring Increases in Sales and Inventory

Greater Nashville April Home Sales Bring Increases in Sales and Inventory
Press Release by Greater Nashville REALTORS® | April 7, 2018

NASHVILLE, Tenn. (May 7, 2018) – There were 3,419 home closings reported for the month of April, according to figures provided by Greater Nashville REALTORS®. This represents an increase of 2.8 percent from the 3,325 closings reported for April 2017.

Year-to-date closings total 11,629. That is a .3 percent decrease compared to the 11,663 closings reported through April 2017.

“Home sales for the second quarter started with the types of positive gains expected for this time of the year,” said Sher Powers, Greater Nashville REALTORS® President. “The most encouraging gain is in inventory, particularly in the residential and condominium classes.

“While demand has remained high, the supply struggle has had a mild impact on our market,” said Powers. “The addition of inventory from new home construction and current homeowners placing their homes on the market is welcomed by potential buyers and will provide a modicum of relief to the supply-demand tension.”

There were 3,430 sales pending at the end of the month, compared to the 3,540 pending sales at this time last year. The average number of days on the market for a single-family home was 32 days.

The median residential price for a single-family home during April was $295,000 and for a condominium it was $222,750. This compares with last year’s median residential and condominium prices of $275,000 and $195,255, respectively.

Inventory at the end of April was 8,876, up from 8,481 in 2017.

“A growing supply of homes in all price ranges is a must for a healthy and balanced market,” said Powers. “It provides housing opportunities and options for immediate buyer needs, which is important currently. But, with announcements like the relocation of the AllianceBernstein headquarters to Nashville later this year, a solid inventory is also necessary to provide a depth of options for future buyers.”

### Greater Nashville REALTORS® is one of Middle Tennessee’s largest professional trade associations and serves as the primary voice for Nashville-area property owners. REALTOR® is a registered trademark that may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict code of ethics. ###

Source: Greater Nashville REALTORS®, Press Release 050718