Nationally: Contract Signings Post First Gains Since June

Nationally: Contract Signings Post First Gains Since June
National Association of REALTORS® | December 27, 2017

Pending home sales eked out a small increase in November on both a monthly and annualized basis. The increase was enough to make it the highest gain in contract signings since June as well, the National Association of REALTORS® reported Wednesday.

But will it last? Existing-home sales and price growth are expected to slow heading in 2018 due to the impact from altered tax benefits of homeownership affecting some high-cost areas, according to NAR.

NAR’s Pending Home Sales Index—a forward-looking indicator based on contract signings—inched up 0.2 percent month over month. NAR’s index reached a reading of 109.5 in November and is at its highest reading since June (110). The index is 0.8 percent higher than a year ago.

“The housing market is closing the year on a stronger note than earlier this summer, backed by solid job creation and an economy that has kicked into a higher gear,” says Lawrence Yun, NAR’s chief economist. “However, new buyers coming into the market are finding out quickly that their options are limited and competition is robust. REALTORS® say many would-be buyers from earlier this year, stifled by tight supply and higher prices, are still trying to buy a home.”

Existing-home sales are up 5.8 percent—more than double wage growth. Inventories remain tight at a 3.4-month supply of homes on the market, which is the lowest since NAR began tracking in 1999.

“The strengthening economy, and expectation that more millennials will want to buy, serve as promising signs for solid homebuying demand next year, while also putting additional pressure on inventory levels and affordability,” Yun says. “Sales do have room for growth in most areas, but nationally, overall activity could be slightly negative. Markets with high home prices and property taxes will likely feel some impact from the reduced tax benefits of owning a home.”

Yun forecasts that existing-home sales will finish 2017 at around 5.54 million, which is an increase of 1.7 percent from 2016 (5.45 million). The national median existing-home price for 2017 is expected to increase to around 6 percent.

Yun projects that in 2018, existing-home sales will see little change, declining just 0.4 percent to 5.52 million. He also forecasts that price growth will moderate to around 2 percent.

November PHS Infographic

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 122717

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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Median Home Prices Rise While Home Sales Lessen in July

Median Home Prices Rise While Home Sales Lessen in July
Press Release by Greater Nashville Association of REALTORS® | August 8, 2016

GNAR-225x100NASHVILLE, Tenn. (Aug. 8, 2016) – There were 3,705 home closings reported for the month of July, according to figures provided by the Greater Nashville Association of REALTORS®. This represents a 3.3 percent decrease from the 3,832 closings reported for the same period last year.

Year-to-date closings for the Greater Nashville area are 22,157. That is an increase of 5.3 percent from the 21,038 closings reported through July 2015.

“The slight decline in home sales is not a cause for concern, and is actually a positive for the market,” said GNAR President Denise Creswell. “The furious pace homes have been selling at is not sustainable. The imbalance of supply and demand, combined with the continued gains in price, means inevitably we will reach a point where the market will slow down. This pause may be a sign the market is beginning to slow down and correcting itself until more inventory is available.

“July marks the first time in seven months that Middle Tennessee home sales have been down year-over-year,” said Creswell. “That aside, our pending home sales numbers remain high, proving homeownership is still important and there are plenty of prospective buyers in the marketplace.”

There were 3,724 sales pending at the end of July, compared with 3,708 pending sales at this time last year. The average number of days on the market for a single-family home was 54 days.

The median residential price for a single-family home during July was $267,000 and for a condominium it was $189,986. This compares with last year’s median residential and condominium prices of $234,900 and $161,500, respectively.

Inventory at the end of July was 12,329, down from 13,728 in July 2015.

“Despite a slight decrease in sales, median home prices continue to rise. We’re in the middle of the perfect storm that continues to drive up our median prices,” said Creswell. “Nashville is an incredible place to live, so the demand is high. But our low inventory levels make meeting the demand a challenge. At the end of July, interest rates were hovering around 3.5 percent, which is lower than the 4 percent rate this time last year. All of these factors combined contribute to increased prices.

“Homeowners appreciate the gain in home prices, as it positively impacts their equity and investment. But for those trying to buy a home, especially those new to the market, these gains are obstacles. The simple fact remains, until we have more inventory available, home prices will continue to rise. Realtors are hopeful the recent legislative change in how condominiums are approved for FHA financing will add more units to the supply and lessen the burden on first-time buyers.”

### 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 080816

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

Greater Nashville 2016 Second Quarter Home Sales Continue Trend to Outpace 2015

2016 Second Quarter Home Sales Continue Trend to Outpace 2015
Greater Nashville Association of REALTORS® | May 9, 2016

GNAR-225x100NASHVILLE, Tenn. (May 9, 2016) – There were 3,284 home closings reported for the month of April, according to figures provided by the Greater Nashville Association of REALTORS®. This represents an increase of 11.7 percent from the 2,940 closings reported for April 2015.

Year-to-date closings total 10,885. That is a 10.6 percent increase compared to the 9,844 closings reported through April 2015.

“As an industry we have started the second quarter with the same trends and increases we saw in the first,” said Denise Creswell, GNAR President. “Last October Forbes listed Nashville fifth on their list of cities Americans are flocking to. That’s easy to believe considering year-to-date sales are up 1,000 units compared to the same time period last year.

“Even as much of the country is experiencing gains in the housing market, Middle Tennessee’s diverse economy and progressive leadership keeps our region among the top 20 markets in the country,” said Creswell. “Our metro area was recognized by the Brookings Institute as the fifth best metro area for job growth over the past five years. A flourishing job market combined with low mortgage rates continues to sustain our market.”

There were 3,756 sales pending at the end of the month, compared to the 3,198 pending sales at this time last year. The average number of days on the market for a single-family home was 58 days.

The median residential price for a single-family home during April was $250,000 and for a condominium it was $193,473. This compares with last year’s median residential and condominium prices of $224,975 and $169,640, respectively.

Inventory at the end of April was 12,244, down from 13,521 in 2015.

“Inventory is the biggest challenge to our market. Low inventory contributes to the fast clip of homes entering and leaving the market, as well as housing affordability” said Creswell. “Decreased inventory levels combined with high buyer demand equals a seller’s market. Until there are more available properties on the market, median prices will continue to rise.

“Realtors have always stood in favor of making homeownership available to all who have the desire and ability to afford a home. Creating the desire isn’t difficult, but enabling those with the ability can be challenging because of the lack of quality and available homes in the affordable price range,” said Creswell. “Because of this, GNAR is excited about Mayor Barry’s commitment to increasing affordable housing units in Nashville. Hearing her list the Barnes Housing Fund as one of the items to benefit from our city’s success and revenue growth is a step we are headed in the right direction.”

Source: GNAR Press Release 050916

Kenneth Bargers, REALTOR® | Pilkerton Realtors
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2 Cadillac Drive, Brentwood Tennessee address

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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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Greater Nashville Exceeds All 2014 Home Sales in November

Greater Nashville Exceeds All 2014 Home Sales in November
Press Release by Greater Nashville Association of REALTORS® | December 8, 2015

GNAR-225x100NASHVILLE, Tenn. (Dec. 8, 2015) – There were 2,397 home closings reported for the month of November, according to figures provided by the Greater Nashville Association of REALTORS®. This figure is down 3.1 percent from the 2,474 closings reported for the same period last year.

Year-to-date closings through November are 33,679, a 6.9 percent increase from the 30,431 closings reported through November 2014.

“With another full month to go, Middle Tennessee home sales have already exceeded those of 2014,” said GNAR President Cindy Stanton. “Even with a slight dip in year-over-year sales, our market continues to thrive.”

“With the season of the year and the tight inventory levels, the small decline in sales isn’t a surprise. In fact, in active markets such as ours, this leveling out is inevitable and healthy,” said Stanton. “Home prices continue to experience incremental gains and pending sales remain strong, both of which are positive indicators for the sustained strength of our market.”

There were 2,516 sales pending at the end of the month, compared with 2,489 pending sales at this time last year. The average number of days on the market for a single-family home was 58 days.

The median residential price for a single-family home during November was $231,925, and for a condominium, it was $178,002. This compares with last year’s median residential and condominium prices of $215,000 and $165,256, respectively.

Inventory at the end of November was 12,433, compared to 13,715 in November of last year.

“If you are considering putting your home on the market, it’s not too late,” said Stanton. “There are advantages like less competition that come with putting your home on the market now. Check with a Realtor today to learn more about those and get the process started.”

### 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 120815

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

Signs Indicate No Drop-Off for Home Sales

Signs Indicate No Drop-Off for Home Sales
Article by Daily Real Estate News | August 28, 2015

PendingSalesAugust2015It appears existing-home sales won’t drop off at the end of the summer, as sales contracts rose modestly in July, reflecting an overall upward trend for the past seven months, according to National Association of REALTORS® data.

The housing market has begun the second half of 2015 on an upbeat note, with NAR’s Pending Home Sales Index — a forward-looking indicator based on contract signings — inching up 0.5 percent in July to 110.9. It is now 7.4 percent above year-ago levels.

“Led by a solid gain in the Northeast, contract activity in most of the country held steady last month, which bodes well for existing-sales to maintain their recent elevated pace to close out the summer,” says NAR Chief Economist Lawrence Yun. “While demand and sales continue to be stronger than earlier this year, REALTORS® have reported since the spring that available listings in affordable price ranges remain elusive for some buyers trying to reach the market and are likely holding back sales from being more robust.”

Housing inventory shortages likely will persist into the fall, which will also prompt existing-home prices to continue to rise, Yun notes. The national median existing-home price will likely rise 6.3 percent this year to $221,400, according to NAR. Existing-home sales also are expected to rise by 7.1 percent this year, totaling 5.29 million. That’s still about 25 percent below the 2005 peak of 7.08 million.

“In light of the recent volatility in the stock market, it’s possible some prospective buyers may err on the side of caution and delay decisions, while others may view real estate as a more stable asset in the current environment,” Yun says. “Overall, the prospects for ongoing strength in the housing market remain intact for now. The U.S. economy is growing — albeit at a modest pace — and the labor market continues to add jobs.”

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 082815

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