NAR: Homes Selling Faster Than Ever

NAR: Homes Selling Faster Than Ever
National Association of REALTORS®   article by Daily Real Estate News | December 22, 2017

The time homes spent on the market hit an all-time low in 2017 at just three weeks, the National Association of REALTORS® reports. A low inventory of homes for sale mixed with strong buyer demand has helped to keep market times low from 2014 to 2017.

During the height of the housing boom from 2001 to 2005, homes sold within a month of being listed. But as the housing market began to slow in 2006, the median time jumped to six weeks, and then to 10 weeks by 2009.

Tight inventories and a lack of construction of homes has helped to keep homes selling faster in recent years, NAR notes.

NARgraphic

Source: “Drop in Time on Market to Sell a Home,” National Association of REALTORS® Economists’ Outlook blog (Dec. 21, 2017); REALTOR® Magazine Online, Daily Real Estate News 122217

National Overview: 2 Major Reasons Why Inventory Is So Low

2 Major Reasons Why Inventory Is So Low
realtor.com    article by Daily Real Estate News | August 11, 2017

House 1014Inventory of available homes on the market is the lowest it’s been in two decades, but the reasons may surprise you. Two of the likely culprits are baby boomers and homeowners who are simply satisfied with their home, according to realtor.com®’s Housing Shortage Study.

Baby boomers are showing a desire to age in place in their current homes, and their refusal to sell is creating a clog in the market, according to the study. Eighty-five percent of baby boomers surveyed say they are not planning to sell their home in the next year. That means 33 million properties—many of which are urban condos or suburban single-family homes—will stay off the market. Many of those properties would be popular choices for millennials, a generation still largely waiting in the wings to break into homeownership.

“Boomers, indeed, hold the key to those homes the market desperately needs, both in the urban condo and the detached suburban home segment,” says realtor.com® chief economist Danielle Hale. “But with a strong economy and rising home prices, there’s really no reason for established homeowners to sell in the short term. Although downsizing might be on the minds of boomers, they face the same inventory shortages and price increases plaguing millennials.”

Furthermore, 63 percent of respondents to the survey indicate that their current home meets the needs of their family. They cite low interest rates (16 percent), recently purchasing their home (15 percent), and needing to make home improvements and low property taxes (each at 13 percent) as reasons not to sell. “Life events drive real estate transactions,” Hale says. “When the majority of homeowners feel their family’s needs are being met by their current home, there is nothing compelling to them to put their home on the market.”

There may be hope that more starter homes will hit the market soon. Possibly offsetting the low supply of starter homes, which is down 17 percent year over year, 60 percent of respondents to realtor.com®’s survey who did say they plan to sell in the next year are millennials who want to move to a larger home or one with nicer features.

“The housing shortage forced many first-time home buyers to consider smaller homes and condos as a way to literally get their foot in the door,” says Hale. “Our survey data reveals that we may see more of these homes hitting the market in the next year, but whether these owners actually list will depend on whether they can find another home.”

Source: realtor.com®; REALTOR® Magazine Online, Daily Real Estate News 081117

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Time on Market Hits New Low in April

Time on Market Hits New Low in April
National Association of REALTORS®   article by Daily Real Estate News | May 24, 2017

Low inventory pushed existing-home sales down in April and sped up the median number of days a home sat on the market to a new low of 29 days, the National Association of REALTORS® reported Wednesday. That is the shortest time frame since NAR began tracking such data in May 2011. The previous record was 32 days, which was reached last May.

Though homes are selling faster, inventory woes persist. Total existing-home sales—which are completed transactions of single-family homes, townhomes, condos, and co-ops—decreased 2.3 percent to a seasonally adjusted annual rate of 5.57 million in April. RegionalApril2017However, sales are still 1.6 percent higher than a year ago.

“Last month’s dip in closings was somewhat expected given that there was such a strong sales increase in March at 4.2 percent, and new and existing inventory is not keeping up with the fast pace of homes coming off the market,” says Lawrence Yun, NAR’s chief economist. “Demand is easily outstripping supply in most of the country, and it’s stymieing many prospective buyers from finding a home to purchase.”

Total housing inventory at the end of April stood at 1.93 million existing homes available for sale, NAR reported. That’s 9 percent lower than a year ago, when inventory stood at 2.12 million. At the current sales pace, unsold inventory is at a 4.2-month supply.

“REALTORS® continue to voice the frustration their clients are experiencing because of the insufficient number of homes for sale,” Yun says. “Homes in the lower- and mid-market price range are hard to find in most markets, and when one is listed for sale, interest is immediate and multiple offers are nudging the eventual sales prices higher.”

Here are a few additional housing indicators from NAR’s latest report:

  • The median existing-home price for all housing types last month was $244,800, up 0.6 percent from a year ago.
  • Short sales took the longest to sell at a median of 88 days on the market in April. Foreclosures sold in a median of 46 days. Foreclosures and short sales comprised 5 percent of sales in April, down from 7 percent a year ago. Broken out, 3 percent of sales were foreclosures and 2 percent were short sales. Foreclosures sold for an average discount of 18 percent below market value, while short sales were discounted 12 percent.
  • First-time home buyers comprised 34 percent of sales in April, matching the highest percentage since last September.
  • All-cash transactions made up 21 percent of sales in April, down from 24 percent a year ago. Individual investors make up the biggest bulk of cash sales. They purchased 15 percent of homes, up from 13 percent a year ago.

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 052417

KENNETH BARGERS REALTOR® License 318311 | Pilkerton Realtors License 257352
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2016 Marked Best Year for Sales in a Decade

2016 Marked Best Year for Sales in a Decade
Article by Daily Real Estate News | January 24, 2017

Existing-home sales finished out 2016 as the best year since the housing boom days, the National Association of REALTORS® reported Tuesday.

Total existing-home sales – which are completed transactions that include single-family homes, townhomes, condos, and co-ops – closed 2016 at 5.45 million sales, surpassing 2015 (5.25 million). It was the highest total for existing-home sales since 2006 (6.48 million), NAR reported.

“Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market,” says Lawrence Yun, NAR’s chief economist. “However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December.

The final month of 2016 saw existing-home sales drop 2.8 percent to a seasonally adjusted annual rate of 5.49 million, NAR reported. Sales in December were now only 0.7 percent higher than a year ago. Low housing supplies continue to press on the market.

“While a lack of listings and fast rising home prices was a headwind all year, the surge in rates since early November ultimately caught some prospective buyers off guard and dimmed their appetite or ability to buy a home as 2016 came to an end,” Yun says.

5 Key Stats From December’s Housing Report

Here’s a closer look at some key indicators from NAR’s December existing-home sales report.

byregiondec2016Home prices: Median existing-home price for all housing types in December was $232,200, up 4 percent from a year ago ($223,200).

Days on the market: Thirty-seven percent of homes sold in December were on the market for less than a month. Properties, on average, stayed on the market for 52 days in December, up from 43 days in November but down from a year ago (58 days). Non-distressed homes took an average of 50 days to sell while short sales sales took the longest at a median of 97 days on the market in December. Foreclosures sold in 53 days, on average.

Cash sales: All-cash sales comprised 21 percent of transactions in December, down from 24 percent a year ago. Individual investors make up the bulk of cash sales. They accounted for 15 percent of homes purchased in December, unchanged from a year ago.

Distressed sales: Foreclosures and short sales ticked up to 7 percent in December, up from 6 percent in November. Still, distressed sales are down from 8 percent a year ago. Foreclosures made up 5 percent of sales in December while short sales comprised 2 percent of sales. Foreclosures sold for an average discount of 20 percent below market value in December while short sales were discounted 10 percent.

Inventories: Total housing inventory at the end of December fell 10.8 percent to 1.65 million existing homes available for sale — the lowest level since NAR began tracking the supply of all housing types in 1999. Inventory is now 6.3 percent lower than a year ago. It is at a 3.6-month supply at the current sales pace.

“Housing affordability for both buying and renting remains a pressing concern because of another year of insufficient home construction,” says Yun. “Given current population and economic growth trends, housing starts should be in the range of 1.5 million to 1.6 million completions and not stuck at recessionary levels. More needs to be done to address the regulatory and cost burdens preventing builders from ramping up production.”

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 012417

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Home Sales Steady in Middle Tennessee Through Third Quarter

Home Sales Steady in Middle Tennessee Through Third Quarter
Article by Greater Nashville Association of REALTORS® | October 6, 2016

GNAR-225x100NASHVILLE, Tenn. (Oct. 6, 2016) – There were 3,474 home closings reported for the month of September, according to figures provided by the Greater Nashville Association of REALTORS®. That number is up 0.8 percent from the 3,444 closings reported for the same period last year.

Third quarter numbers experienced a 1.2 percent decrease from 2015 with 10,920 closings reported, compared to last year’s third quarter closings of 11,046.

Year-to-date closings for the Greater Nashville area are 29,372. That total is up 3.9 percent from the 28,252 closings reported through the third quarter of 2015.

“The monthly, quarterly and year-to-date numbers are actually very similar, despite only two of the three showing an increase,” said GNAR President Denise Creswell. “Year-over-year sales for the month and the quarter are essentially flat, which is to be expected this time of year. Our region’s ability to remain stable given the inventory shortage is a strong indication of the healthy market we have.”

“Through the third quarter each county in our reporting area has experienced an increase in median sales price. Eight of the nine counties increased in sales, also,” said Creswell. “Pending sales are solid going into the last quarter of the season indicating we should finish the year well. It’s apparent investing in homeownership is still a priority for the residents of Middle Tennessee.”

There were 3,577 sales pending at the end of September, compared with 3,244 pending sales at this time last year. The average number of days on the market for a single-family home was 50 days, compared with 56 days for September 2015.

The median residential price for a single-family home during September was $256,900, and for a condominium, it was $188,495. This compares with last year’s median residential and condominium prices of $236,866 and $171,325, respectively.

Inventory at the end of September was 11,886, down from 13,141 in September 2015.

“Despite a small decline in sales, buyers and sellers remain in the marketplace,” said Creswell. “Sellers should remember they are responsible for putting the best property on the market, even in light of fewer homes for sale. They can’t take for granted that a potential buyer will act on any property simply to make a purchase, despite the property’s condition.

“For buyers, Realtors can’t stress enough how important it is to be pre-approved and ready to act. That has been true all year, and as inventory conditions tighten this fall, it’s critical. Those properties that are well-maintained and property marketed and priced will enter and exit the market rapidly.”

### The Greater Nashville Association of 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: GNAR Press Release 100616

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The Hot List: 20 Markets Soaring in September

The Hot List: 20 Markets Soaring in September
Article by Daily Real Estate News | September 30, 2016

realtordotcom-logoSeptember is shaping up to be the hottest fall in the last decade, according to realtor.com®’s latest housing report. Homes for sale in September are moving 4 percent more quickly than last year, despite prices zooming to record highs.

The median home price was $250,000 in September, about 9 percent higher than a year ago and marking a new high for September, realtor.com® reports.

“The fundamental trends we have been seeing all year remain solidly in place as we enter the slower time of the year,” says Jonathan Smoke, realtor.com’s chief economist. A shortage of homes for sale on the market mixed with high demand is triggering price increases across many markets, he says.

So, which housing markets in September stood out the most? Realtor.com®’s data team factored in the number of days homes are spending on the market and the number of views that listings received at its site.

They pinpoints these cities as the hottest real estate markets in the nation in September — those in which inventories are moving 23 to 43 days more quickly than the national average, and listings are garnering 1.4 to 3.7 more views.

  1. San Francisco
  2. Vallejo
  3. Denver
  4. Dallas
  5. San Diego
  6. Stockton
  7. Fort Wayne
  8. Sacramento
  9. San Jose
  10. Waco
  11. Modesto
  12. Columbus
  13. Yuba City
  14. Detroit
  15. Santa Rosa
  16. Colorado Springs
  17. Santa Cruz
  18. Kennewick
  19. Nashville
  20. Grand Rapids

Source: “The Hottest U.S. Real Estate Markets for September 2016,” realtor.com® (Sept. 29, 2016); REALTOR® Magazine Online, Daily Real Estate News 093016

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Low Supply Levels Restrain Contract Signings

Low Supply Levels Restrain Contract Signings
Article by Daily Real Estate News | September 29, 2016

NAR LogoPending home sales softened in August for the third time in four months, and retreated to the lowest level since January, the National Association of REALTORS® reported Thursday.

NAR’s Pending Home Sales Index – a forward-looking indicator based on contract signings – dropped 2.4 percent last month to a reading of 108.5. Lawrence Yun’s, NAR’s chief economist, says that a limited number of homes for sale continue to stifle the housing market.

“Contract activity slackened throughout the country in August except for in the Northeast, where higher inventory totals are giving home shoppers greater options and better success signing a contract,” Yun says. “In most other areas, an increased number of prospective regional092916buyers appear to be either wavering at the steeper home prices pushed up by inventory shortages or disheartened by the competition for the miniscule number of affordable listings.”

Without more new home construction, the current housing recovery could stall, NAR said in its latest release. For 15 consecutive months, housing inventory has dropped year-over-year. In August, properties typically sold 11 days faster than a year ago. What’s more, due to the limited supplies, existing-home prices continue to rise.

“There will be an expected seasonal decline in new listings in coming months, which could accelerate price appreciation and make finding an affordable home even more of a struggle for would-be buyers,” Yun says.

NAR released a study earlier this month that showed single-family home construction is failing to keep pace with job creation. Its report showed that home construction is muted in 80 percent of the metro areas it tracked, and is most problematic in the West.

“Given the current conditions, there’s not much room for sales to march again towards June’s peak cyclical sales pace,” Yun says.

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 092916

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