Nationally: Why Were Fewer Contracts Signed in August?

Nationally: Why Were Fewer Contracts Signed in August?
National Association of REALTORS® | September 27, 2018

Pending home sales continued to fall last month, marking the eighth consecutive month for annual decreases, the National Association of REALTORS® reported Thursday. The drop in contracts may be a sign of a growing number of buyers who are being priced out of the market, economists warn.

August PHS InfographicNAR’s Pending Home Sales Index—a forward-looking indicator based on contract signings—fell 1.8 percent to a reading of 104.2 in August. Contract signings are now 2.3 percent lower than a year ago.

The largest declines last month were in the West, where home prices have risen the most. “[This] clearly indicates that affordability is hindering buyers and those affordability issues come from lack of inventory, particularly in moderate price points,” says Lawrence Yun, NAR’s chief economist.

The decline in sales contracts has also coincided with fewer homes on the market. But that may soon change—a record high of Americans now say it’s a good time to sell their home, according to NAR’s third-quarter Housing Opportunities and Market Experience survey.

“Just a couple of years ago about 55 percent of consumers indicated it was a good time to sell; that figure has climbed to 77 percent today,” Yun says. “With prices having risen so quickly, many consumers were deciding to wait to list their homes hoping to see additional price and equity gains. However, with indications that buyers are beginning to pull out, price gains are going to decelerate and potential sellers are considering that now is a good time to list and bring more properties to the market.”

Source: National Association of REALTORS®; REALTOR® Mag News 092718

Nationally: Sales Struggle to Overcome Housing Shortages

Nationally: Sales Struggle to Overcome Housing Shortages
National Association of REALTORS®
article by Daily Real Estate News | May 24, 2018

Blame it on the low inventory of available property: Total existing-home sales failed to gain traction in April, according to the National Association of REALTORS® latest housing report, released Thursday.

Total existing-home sales—which are completed transactions that include single-family homes, townhomes, condos, and co-ops—decreased 2.5 percent to a seasonally adjusted annual rate of 5.46 million in April. Sales are now 1.4 percent below a year ago. This also marks the second consecutive month sales have fallen on an annual basis.

Regional Breakdown  The following is a breakdown of existing-home sales across the country in April:

  • Northeast: existing-home sales dropped 4.4 percent to an annual rate of 650,000, and are now 11 percent below a year ago. Median price: $257,200—2.8 percent higher than a year ago.
  • Midwest: existing-home sales were unchanged month-over-month at an annual rate of 1.29 million in April, and are 3 percent below a year ago. Median price: $202,100—up 4.6 percent from a year ago.
  • South: existing-home sales dropped 2.9 percent to an annual rate of 2.33 million in April, but are still 2.2 percent above a year ago. Median price: $227,600—up 3.9 percent from a year ago.
  • West: existing-home sales dropped 3.3 percent to an annual rate of 1.19 million in April and are 0.8 percent below a year ago. Median price: $382,100—up 6.2 percent from a year ago.

“The root cause of the underperforming sales activity in much of the country so far this year continues to be the utter lack of available listings on the market to meet the strong demand for buying a home,” says Lawrence Yun, NAR’s chief economist. “REALTORS® say the healthy economy and job market are keeping buyers in the market for now even as they face rising mortgage rates. However, inventory shortages are even worse than in recent years, and home prices keep climbing above what many home shoppers are able to afford.”

For the inventory that is out there, homes are selling fast. Strong buyer demand mixed with low inventory levels are prompting homes to sell at a record pace.

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

Home prices: The median existing-home price for all housing types in April was $257,900, up 5.3 percent from a year ago.

Inventories: Total housing inventory at the end of April rose 9.8 percent to 1.80 million existing homes available for sale. Inventories are still 6.3 percent lower than a year ago. Unsold inventory is at a four-month supply at the current sales pace.

Days on the market: Properties stayed on the market an average of 26 days in April, down from 29 days a year ago. Fifty-seven percent of homes sold in April were on the market for less than a month.

“What is available for sale is going under contract at a rapid price,” Yun says. “Since NAR began tracking this data in May 2011, the median days a listing was on the market was at an all-time low in April, and the share of homes sold in less than a month was at an all-time high.”

All-cash sales: All-cash transactions comprised 21 percent of sales in April, unchanged from a year ago. Individual investors account for the biggest bulk of cash sales. Investors purchased 15 percent of homes in April, also unchanged from a year ago.

Distressed sales: Foreclosures and short sales made up just 3.5 percent of sales in April, the lowest since NAR began tracking such data in October 2008. That is also down from 5 percent a year ago. Broken out, 3 percent of April sales were foreclosures and 0.5 percent were short sales.

April-EHS

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 052418

Nationally: Despite Buyer Demand, Contract Signings Fall

Nationally: Despite Buyer Demand, Contract Signings Fall
National Association of REALTORS article by Daily Real Estate News | April 30, 2018

Pending home sales picked up the pace in March, but ongoing issues related to low inventory kept contract activity below year-ago levels, the National Association of REALTORS® reported Monday. NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, inched up 0.4 percent to a reading of 107.6 in March. Despite the uptick, overall activity was down on an annualized basis for the third consecutive month.

Mar18_PHS“Healthy economic conditions are creating considerable demand for purchasing a home, but not all buyers are able to sign contracts because of the lack of choices in inventory,” says NAR Chief Economist Lawrence Yun. “Steady price growth and the swift pace with which listings are coming off the market are proof that more supply is needed to fully satisfy demand. What continues to hold back sales is the fact that prospective buyers are increasingly having difficulty finding an affordable home to buy.”

Regionally, pending home sales dropped by the largest amount in the Northeast, falling 5.6 percent month over month in March and 8.1 percent year over year. Yun says multiple winter storms and colder than usual weather contributed to the decrease. Meanwhile, contract signings rose by 2.4 percent in the Midwest but are 6 percent below a year ago, and they were up by 2.5 percent in the South but are just 0.3 percent higher than a year ago. Pending home sales fell in the West by 1.1 percent month over month and are now 2.2 percent below a year ago.

“Much of the country is enjoying a thriving job market, but buying a home is becoming more expensive,” Yun says. “That is why it is an absolute necessity for there to be a large increase in new and existing homes available for sale in the coming months to moderate home price growth. Otherwise, sales will remain stuck in this holding pattern, and a growing share of would-be buyers—especially first-time buyers—will be left on the sidelines.”

Source: National Association of REALTORS®; Daily Real Estate News 043018

The West, South Lift New-Home Sales

The West, South Lift New-Home Sales
National Association of Home Builders
article by Daily Real Estate News | April 25, 2018

House 1043Builders saw more sales of newly built single-family homes last month, as the spring selling season got underway. New-home sales posted a 4 percent increase in March month over month, the U.S. Commerce Department reported Tuesday. New single-family homes reached a seasonally adjusted annual rate of 694,000 units in March, the second highest reading since the Great Recession. The West and South regions of the U.S. led to most of that uptick.

“We saw sales move forward in the West and South regions, which is in line with recent evidence of faster growth in population, employment, and single-family construction in these areas,” says Michael Neal, senior economist for the National Association of Home Builders. “But with nationwide economic growth and favorable demographics, we can expect continued strengthening of the housing market across the country.”

New-home sales rose 28.3 percent month over month in March in the West and were up by 0.8 percent in the South. Sales plunged 54.8 percent in the Northeast and by 2.4 percent in the Midwest. Bad winter weather has been blamed on softening sales in the Northeast in recent weeks.

Nationwide, the median sales price of a new home sold was $337,200 in March. Inventories remain tight at a 5.2-month supply at the current sales pace.

While new-home sales gained some ground last month, economists say that construction in the sector is still not robust enough to catch up to buyer demand. The low inventories of homes for sale—in both the new and existing-home sectors—are prompting prices to soar. The S&P/Case Shiller national index, reflecting February data, showed home prices rising to a near four-year high. National Association of REALTORS®’ median home price data also shows gains of about double the average wage growth.

“Even as the tightening job market is starting to boost incomes, those looking to buy are facing a double whammy of fast rising home prices and higher mortgage rates,” says Lawrence Yun, NAR’s chief economist, in reaction to the S&P/Case Shiller index’s release on Tuesday. “The way to make housing more affordable is to build more homes, particularly small-sized entry-level homes and condominiums.”

Source: National Association of Home Builders and National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 042518

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
bargers-solutions.com web  •  kennethbargers.com blog  •  Search Properties
(615) 371-2474 office  •  (615) 371-2475 facsimile  •  2 Cadillac Drive, Brentwood TN 37027 address
The greatest compliment you can give is a referral!

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
(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

Contract Signings Jump to Near Decade High

Contract Signings Jump to Near Decade High
National Association of REALTORS® | March 29, 2017

HomeSale500wPending home sales posted a strong rebound in February, soaring to the highest level in nearly a year and the second highest level in more than a decade, the National Association of REALTORS® reported Wednesday. All major regions saw an uptick in sales contracts last month.

NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 5.5 percent month over month to an 112.3 reading in February. The Publication1index is now 2.6 percent higher than a year ago and is at the highest level since last April (113.6) and the second highest since May 2006 (112.5).

“Buyers came back in force last month as a modest, seasonal uptick in listings were enough to fuel an increase in contract signings throughout the country,” says Lawrence Yun, NAR’s chief economist. “The stock market’s continued rise and steady hiring in most markets is spurring significant interest in buying, as well as the expectation from some households that delaying their home search may mean paying higher interest rates later this year.”

Further, the warmer-than-usual weather across the country may have helped give an earlier start to the spring buying season. Yun notes that last month was the warmest February in decades, which may have also “played a role in kick-starting prospective buyers’ house hunt.”

Yun expects activity to fluctuate over the spring season, however, as the lack of supply continues to limit the number of homes sold, particularly in the lower and mid-market price ranges.

“The homes most buyers are in the market for are unfortunately the most difficult to find and ultimately buy,” Yun says. “The country’s healthy labor market is translating to greater job security, but affordability is not improving because home prices in some areas are still outpacing incomes by three times or more because of tight supply. How much new and existing inventory there is on the market this spring will determine if sales can reach their full potential and finally start reversing the nation’s low homeownership rate.”

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 032917

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