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

KENNETH BARGERS REALTOR® License 318311 | Pilkerton Realtors License 257352
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Nashville Among The 20 Hottest Housing Markets for July 2016

Nashville Among The 20 Hottest Housing Markets for July 2016
Article by Daily Real Estate News | July 28, 2016

ParthenonCornerJuly 2016 may end up as a month for the record books. According to new realtor.com® data, the U.S. is seeing the hottest July for home buying and selling in a decade.

“The best spring in a decade has transitioned into the hottest summer in a decade,” says Jonathan Smoke, realtor.com®’s chief economist. “Pent-up demand left over from tight supply for two years against the backdrop of mortgage rates remaining near three-year lows have encouraged buyers to keep active at a time when sales usually begin to decline.”

Smoke estimates that properties spent a median of 68 days on the market in July, and the median home price is $251,000, a record price for the month and 7 percent higher than a year ago.

In certain markets, housing markets are especially sizzling. Realtor.com®’s research team took a look at the number of days homes spent on the market, the measure of available supply, and the number of listing views on realtor.com® (to represent demand). They then identified the following 20 medium-to-large U.S. markets where homes are selling the fastest:

  1. Vallejo, CA
  2. Dallas, TX
  3. Denver, CO
  4. San Francisco, CA
  5. Stockton, CA
  6. Columbus, OH
  7. San Diego, CA
  8. Santa Cruz, CA
  9. Sacramento, CA
  10. Santa Rosa, CA
  11. Yuba City, CA
  12. Modesto, CA
  13. Detroit, MI
  14. Fort Wayne, IN
  15. San Jose, CA
  16. Colorado Springs, CO
  17. Fresno, CA
  18. Eureka, CA
  19. Nashville, TN
  20. Ann Arbor, MI

Source: “America’s 20 Hottest Real Estate Markets for July 2016,” realtor.com® (July 28, 2016); REALTOR® Magazine Online, Daily Real Estate News 072816

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 Properties Are Selling the Fastest

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Source: National Association of REALTORS®; April 2016 REALTORS® Confidence Index Survey Report

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

Rising Sales Contracts Make for Strong Spring

Rising Sales Contracts Make for Strong Spring
Article by Daily Real Estate News | April 27, 2016

HouseForSalePending home sales last month zoomed to the highest level in nearly a year, according to the National Association of REALTORS®’s Pending Home Sales Index, a forward-looking indicator based on contract signings. Signings climbed 1.4 percent nationwide in March to an index reading of 110.5, its highest reading since May 2015.

Lawrence Yun, NAR’s chief economist, says the pending home sales increase marks a solid beginning to the spring buying season.

“Despite supply deficiencies in plenty of areas, contract activity was fairly strong in a majority of markets in March,” Yun says. “This spring’s surprisingly low mortgage rates are easing some of the affordability pressures potential buyers are experiencing and are taking away some of the sting from home prices that are still rising too fast and above wage growth.”

Yun also notes the limited number of new single-family homes being built in recent years is starting to impact some top job-producing markets, where limited inventories of homes for sale are driving up prices.

“Demand is starting to weaken in some areas, particularly in the West, where the median home price has risen an astonishing 38 percent in the past three years,” says Yun. The West was the only major region across the U.S. to see a decline in contract activity last month. Closed sales in the region are also below last year’s pace.

Regionally, pending home sales across the country in March broke out as:

  • Northeast: Pending home sales rose 3.2 percent to 97 in March and is 18.4 percent above a year ago.
  • Midwest: Pending home sales were up slightly by 0.2 percent to 112.8 in March, and are 4 percent above year ago levels.
  • South: Pending home sales increased 3 percent to an index of 125.4 in March but remain 0.6 percent lower than last March.
  • West: Pending home sales dropped 1.8 percent in March to a reading of 95.3, and are now 7.9 percent below a year ago.

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 042716

Kenneth Bargers, REALTOR® | Pilkerton Realtors
(615) 512-9836 cellular (615) 371-2474 office kb@bargers-solutions.com email
www.bargers-solutions.com web kennethbargers.com blog
2 Cadillac Drive, Brentwood Tennessee address

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Do you need marketing assistance for special projects or contract assignments? visit the Marketing page of Bargers Solutions

Existing-Home Sales Kick Off Strong Spring

Existing-Home Sales Kick Off Strong Spring
Daily Real Estate News | April 20, 2016

REALTORlogoAfter dismal numbers in February, home sales were back on track in March, ramping up for a strong spring selling season, the National Association of REALTORS® reported Wednesday. In particular, gains in the Northeast and Midwest helped fuel the rebound.

Total sales for existing homes surged 5.1 percent to a seasonally adjusted annual rate of 5.33 million in March — up 1.5 percent from a year ago — according to NAR’s latest existing-home sales data. The report shows that all four major regions of the U.S. posted gains.

“Closings came back in force last month as a greater number of buyers overcame depressed inventory levels and steady price growth to close on a home,” says NAR Chief Economist Lawrence Yun. “Buyer demand remains sturdy in most areas this spring, and the mid-priced market is doing quite well. However, sales are softer both at the very low and very high ends of the market because of supply limitations and affordability pressures.”

5 Stats to Gauge the Market

Here’s an overview of some of the key stats from NAR’s latest housing report:

  1. Home prices: The median price for an existing home in all housing types was $222,700 in March, up 5.7 percent from a year ago.
  2. Days on the market: Forty-two percent of homes sold in March were on the market for less than a month. But the overall average for time on market was 47 days, below the 52-day average a year ago. Short sales tended to linger on the market the longest, at a median of 120 days, while foreclosures typically sold in 50 days and non-distressed homes averaged 46 days.
  3. Distressed sales: Foreclosures and short sales dropped to 8 percent in March, down from 10 percent a year ago. Broken out, 7 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 while short sales were discounted 10 percent.
  4. All-cash sales: All-cash transactions comprised 25 percent of the market in March, up from 24 percent a year ago. Individual investors account for the bulk of cash sales and purchased 14 percent of homes in March, unchanged from a year ago.
  5. Inventory: The number of homes for sale rose 5.9 percent in March to 1.98 million. Still, that remains 1.5 percent lower than a year ago. Unsold inventory is at a 4.5-month supply at the current sales pace.

“The choppiness in sales activity so far this year is directly related to the unevenness in the rate of new listings coming onto the market to replace what is, for the most part, being sold rather quickly,” Yun says. “Additionally, a segment of would-be buyers at the upper end of the market appear to have been spooked by January’s stock market correction.”

Regional Breakdown

Here’s a look at how existing-home sales fared across the country in March:

  • Northeast: Existing-home sales surged 11.1 percent to an annual rate of 700,000, which is 7.7 percent higher than a year ago. Median price: $254,100, up 5.8 percent from a year ago.
  • Midwest: Existing-home sales rose 9.8 percent to an annual rate of 1.23 million, which is 0.8 percent higher than a year ago. Median price: $174,800, up 7 percent from a year ago.
  • South: Existing-home sales increased 2.7 percent to an annual rate of 2.25 million, which is 2.3 percent higher than a year ago. Median price: $194,400, up 4.6 percent from a year ago.
  • West: Existing-home sales increased 1.8 percent to an annual rate of 1.15 million, which is 2.5 percent lower than a year ago. Median price: $320,800, up 5.9 percent from a year ago.

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 042016

Kenneth Bargers, REALTOR® | Pilkerton Realtors
(615) 512-9836 cellular (615) 371-2474 office kb@bargers-solutions.com email
www.bargers-solutions.com web kennethbargers.com blog
2 Cadillac Drive, Brentwood Tennessee address

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Nationally: Sales Tumble Amid Alarmingly Low Inventories

Sales Tumble Amid Alarmingly Low Inventories
Article by Daily Real Estate News | March 21, 2016

REALTORlogoExisting-home sales plunged in February as the number of homes for-sale continued to be severely limited and home prices accelerated, according to the latest housing report released by the National Association of REALTORS®. All major regions across the U.S. saw sales decline in February; the Northeast and Midwest saw the largest decreases.

Total existing-home sales – which are completed transactions for single-family homes, townhomes, condos, and co-ops – dropped 7.1 percent month-over-month to a seasonally adjusted annual rate of 5.08 million in February. Still, sales are 2.2 percent higher than a year ago, NAR reported.

The housing market is failing to keep pace with what had been a strong start to 2016, says Lawrence Yun, NAR’s chief economist.

“Sales took a considerable step back in most of the country last month, and especially in the Northeast and Midwest,” Yun says. “The lull in contract signings in January from the large East Coast blizzard, along with the slump in the stock market, may have played a role in February’s lack of closings. However, the main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers.”

Regional2016-imageThe drop in home sales comes at a time when nationwide job growth is growing. However, more households are showing some uneasiness about the economy and questioning whether it’s starting to lose some of its momentum.

“The overall demand for buying is still solid entering the busy spring season, but home prices and rents outpacing wages and anxiety about the health of the economy are holding back a segment of would-be buyers,” says Yun.

5 Latest Stats to Gauge the Market

Here is an overview of some of the latest housing indicators from NAR’s February housing report.

  1. Home prices: The median existing-home price for all housing types in February was $210,800 — up 4.4 percent from a year ago ($201,900).
  2. Inventories: Unsold inventory in February was at a 4.4-month supply. Total housing inventory by the end of the month increased 3.3 percent to 1.88 million existing homes available for sale. Inventories are still 1.1 percent lower than a year ago (1.90 million).
  3. Days on the market: Thirty-five percent of homes sold in February were on the market for less than a month. Properties, on average, remained on the market for 59 days in February, below the 62 days from a year ago. Short sales were on the market the longest amount of time at 126 days. Foreclosures and non-distressed homes were on the market a median of 57 days.
  4. Distressed sales: The number of foreclosures and short sales rose to 10 percent in February, up from 9 percent in January. That said, distressed sales are down from 11 percent a year ago. Foreclosures made up 7 percent of sales and short sales comprised 3 percent sales. Foreclosures sold for an average discount of 17 percent below market value in February; short sales were discounted, on average, 16 percent below market value.
  5. All-cash transactions: All-cash sales comprised 25 percent of transactions in February, a drop from 26 percent a year ago. Investors make up the biggest bulk of all-cash purchases. Sixty-four percent of investors paid all-cash for their home purchase in February.

“Investor sales have trended surprisingly higher in recent months after falling to as low as 12 percent of sales in August 2015,” Yun says. “Now that there are fewer distressed homes available, it appears there’s been a shift towards investors purchasing lower-priced homes and turning them into rentals. Already facing affordability issues, this competition at the entry-level market only adds to the roadblocks slowing first-time buyers.”

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 032116

Kenneth Bargers, REALTOR® | Pilkerton Realtors
(615) 512-9836 cellular (615) 371-2474 office kb@bargers-solutions.com email
www.bargers-solutions.com web kennethbargers.com blog
2 Cadillac Drive, Brentwood Tennessee address

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Most People Want Single-Family Homes

Most People Want Single-Family Homes
Article by Daily Real Estate News | March 15, 2016

2932 Polo Club 1The suburbs still reign in the eyes of buyers. A new NAR survey reveals that a majority of consumers looking to buy in the next six months want a single-family home outside of an urban area.

According to The Housing Opportunities and Market Experience (HOME) survey, a whopping 85 percent of owners and 75 percent of renters want to buy a single-family home. Just 15 percent of owners and 21 percent of renters are looking to buy in an urban area.

This demand for single-family homes, and the lack of inventory in many markets, underscore the need for builders to focus on creating new homes for the single-family suburban market.

“The American Dream for most consumers is not a cramped, 500-square-foot condo in the middle of the city, but instead a larger home within close proximity to the jobs and entertainment an urban area provides,” says Lawrence Yun, NAR chief economist. “While this is not a new discovery, supply and demand imbalances and unhealthy levels of price growth in several metro areas have made buying an affordable home an onerous task for far too many first-time buyers and middle-class families.”

3_15_single_famLast year, the inventory of existing homes was around a four- to five-month supply, way below the six- to seven-month supply that most economists consider normal.

Despite ongoing inventory issues, most consumers still believe that now is a good time to buy a home. The survey showed that 82 percent of owners and 62 percent of renters are optimistic about now being a good time to buy, though renter optimism is down slightly.

4 Key Takeaways:

Size and location: Most households anticipate their next housing purchase will be of similar size and in a similar location to where they currently live, though renters and younger buyers said their next purchase will be bigger than their current home. Of those currently living in an urban area, just 39 percent would purchase their next place in a similar location.

Prices: Half of those surveyed said that home prices in their area have gone up in the last year, and forty-four percent believe that prices will continue to increase over the next six months.

Economy: 48 percent of people are optimistic about the state of the U.S. economy, down slightly from last quarter’s survey.

Selling: 56 percent of respondents say that now is a good time to sell a home.

Source: National Association of REALTORS®; REALTOR® Magazine Online 031516

Kenneth Bargers, REALTOR® | Pilkerton Realtors
(615) 512-9836 cellular (615) 371-2474 office kb@bargers-solutions.com email
www.bargers-solutions.com web kennethbargers.com blog
2 Cadillac Drive, Brentwood Tennessee address

Need a home? visit Search for Properties
Do you need marketing assistance for special projects or contract assignments? visit the Marketing page of Bargers Solutions