Tag: NAR

Sales of previously owned homes were relatively flat in January, according to new estimates from the National Association of Realtors. In fact, sales rose just 0.4 percent from December. But despite being virtually unchanged from the month before, home sales were at their strongest pace in six months and are now 11 percent higher than at the same time last year. Lawrence Yun, NAR’s chief economist, says sales started the year on solid footing. “The housing market has shown promising resilience in recent months, but home prices are still rising too fast because of ongoing supply constraints,” Yun said. “Despite the global economic slowdown, the housing sector continues to recover and will likely help the U.S. economy avoid a recession.” And, though flat overall, a closer look at January’s sales data shows that regional results were varied. For example, sales were up 4 percent in the Midwest and 2.7 percent in the Northeast. At the same time, sales of previously owned homes were unchanged in the South and dropped 4.1 percent in the West. More  here.

When a prospective home buyer signs a contract to buy a home, the closing process begins. At that point, the home sale is listed as pending. Each month, the National Association of Realtors tracks the number of contract signings because, among other things, it provides a good indicator of what future sales of existing homes might look like. In December, the Pending Home Sales Index was virtually flat, increasing just 0.1 percent. Lawrence Yun, NAR’s chief economist, says contract activity lost some momentum at the end of the year, though an increase in the Northeast helped stabilize December’s results. “Warmer than average weather and more favorable inventory conditions compared to other parts of the country encouraged more households in the Northeast to make the decision to buy last month,†Yun said. “Overall, while sustained job creation is spurring more activity compared to a year ago, the ability to find available homes in affordable price ranges is difficult for buyers in many job creating areas.†Despite those challenges, however, pending sales ended the year 4.2 percent above year-before levels. More here.

The National Association of Realtors’ Pending Home Sales Index measures the number of contracts to buy homes signed during the month. Because it tracks signings, and not closings, it’s considered a good gauge of upcoming home sales. In October, the Index was virtually flat, rising just 0.2 percent from the month before. It is now 3.9 percent higher than at the same time last year. Lawrence Yun, NAR’s chief economist, says pending sales have plateaued due to there not be enough homes available for sale. “Contract signings in October made the most strides in the Northeast, which hasn’t seen much of the drastic price appreciation and supply constraints that are occurring in other parts of the country,†Yun said. “In the most competitive metro areas – particularly those in the South and West – affordability concerns remained heightened as low inventory continues to drive up prices.†In fact, regional estimates do show pending sales up 4.5 percent in the Northeast. On the other hand, contract signings rose just 1.7 percent in the West, while the Midwest and South both saw declines. More here.

The National Association of Realtors’ 2015 Profile of Home Buyers and Sellers is a survey that measures the preferences, motivations, and demographics of recent buyers and sellers. According to the results, the increased number of home sales this year has largely been driven by repeat buyers who used the sale of their current home to come up with a down payment on a new house. In fact, 53 percent of repeat buyers used the money they made selling their home as the main source of their down payment. That represents a 6 percent increase over last year and a 13 percent increase from 2012. It also explains a lot about the demographic breakdown of recent home buyers. For example, there has been a smaller share of first-time home buyers active in the market over the past few years. Historically, first timers account for about 40 percent of home sales. This year, they made up just 32 percent. With improved employment conditions and a strengthening housing market, there was an expectation that they would be more active this year. But, according to Lawrence Yun, NAR’s chief economist, debt is the reason young Americans aren’t buying. “First-time buyers reported that debt (all forms) delayed saving for a down payment for a median of three years, and among the 25 percent who said saving was the most difficult task, a majority (58 percent) said student loans delayed saving,†Yun said. More here.

The National Association of Realtors’ Pending Home Sales Index measures the number of contracts to buy homes that were signed during the month. Because it measures signings and not closings, the index is considered a good indication of what home sales will do in the coming months. In September, pending home sales fell 2.3 percent. It was the second straight month contract signings declined. Lawrence Yun, NAR’s chief economist, said there are many reasons contributing to September’s dip in activity. “There continues to be a dearth of available listings in the lower end of the market for first-time buyers, and Realtors in many areas are reporting stronger competition than what’s normal this time of year because of stubbornly low inventory conditions,†Yun said. “Additionally, the rockiness in the financial markets at the end of the summer and signs of a slowing U.S. economy may be causing some prospective buyers to take a wait-and-see approach.†But despite slowing sales and low inventory levels, the number of contracts signed in September was still 3 percent above last year’s level and pending sales have now increased year-over-year for 13 straight months. And, according to Yun, housing demand should remain strong for the foreseeable future due, in part, to lower-than-normal mortgage rates, rents near 8-year highs, and continuing gains in the job market. More here.

After slowing in August, sales of previously owned homes rebounded in September, according to the National Association of Realtors. Existing home sales – which include single-family homes, townhomes, condominiums, and co-ops – increased 4.7 percent from the month before and are now 8.8 percent above last year’s pace. Lawrence Yun, NAR’s chief economist, said moderating home prices and still-low mortgage rates are keeping demand strong. “September home sales bounced back solidly after slowing in August and are now at their second highest pace since February 2007,†Yun said. “While current price growth around 6 percent is still roughly double the pace of wages, affordability has slightly improved since the spring and is helping to keep demand at a strong and sustained pace.†In fact, prices rose year-over-year for the 43rd consecutive month in September. But, while price increases are driven, in part, by a lower-than-normal number of homes available for sale, they also lead to increasing equity for current homeowners. And, as equity has improved, more current homeowners have been motivated to put their homes up for sale. This is helping to moderate price increases, in addition to boosting inventory and the number of trade-up buyers active in the market. More here.