Tag: New York City Real Estate

Among the many indicators used to track the health of the housing market, the National Association of Realtors’ Pending Home Sales Index is unique. That’s because, rather than count the number of homes that sold in any given month, it counts the number of signed contracts to buy homes. So what’s the difference? Well, contracts are typically signed about a month before the actual closing date. Which means, pending sales offer a glimpse of where future sales might be. And, according to the most recent report, sales might soon see a lift. That’s because the number of contracts signed in October was up 3.5 percent and marked the first increase in three months. Lawrence Yun, NAR’s chief economist, said the improvement was encouraging but challenges still remain. “Home shoppers had better luck finding a home to buy in October, but slim pickings and consistently fast price gains continue to frustrate and prevent too many would-be buyers from reaching the market.†In short, buyer demand still outweighs the number of homes available to buy but recent news offers some reason to believe improvements are on the horizon. More here.

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were virtually unchanged last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate mortgages. Mortgage rates are now just above where they were last year at this time. Joel Kan, an MBA economist, told CNBC rates were unmoved due, in part, to low inflation. “The Fed’s FOMC minutes indicated that despite the near certainty of a December rate increase, persistently low inflation remained a concern, pushing Treasury rates slightly lower last week,†Kan said. But, though rates were steady, demand for mortgage applications was up and down. Refinance demand fell 8 percent to its lowest level since January, while demand for loans to buy homes was up 2 percent and at its highest level since September. This, however, is understandable, as refinancing homeowners are more active when rates fall. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

There are many factors to consider when deciding whether or not it’s a good time for you to buy a house. Most of these are personal and have to do with the needs and desires of you and your family. Market conditions may influence your decision, but ultimately the best time for you to buy a house is when you’re ready. And while that’s largely true, knowing what’s going on in the market can still be important, as it gives you a feel for what to expect during your home search and after. For example, recent research shows that the average house is $12,500 more valuable today than it was just a year ago. And, though that will be disappointing news to buyers who have seen their purchasing power reduced over the last year, it should also be encouraging to prospective buyers – as rising prices may mean your future home’s value continues to increase once you’ve become the owner. In other words, if home prices continue to increase at the same pace during the next year, buying a house now may mean you’re – not only getting a better deal now than you would if you wait – but you’ll also be able to start building equity almost immediately. More here.

Home sales increased in October, rising in each of the country’s four major regions, according to the National Association of Realtors. Their monthly measure of how many existing homes were sold showed a 2 percent increase over the previous month – which brings sales to their fastest pace since June. Lawrence Yun, NAR’s chief economist, said the housing market is benefiting from a strong job market and increasing wages. “Job growth in most of the country continues to carry on at a robust level and is starting to slowly push up wages, which is in turn giving households added assurance that now is a good time to buy a home,†Yun said. “While the housing market gained a little more momentum last month, sales are still below year-ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated.†For fall buyers, low inventory means good homes may not stay on the market very long. In fact, the NAR’s research found 47 percent of homes sold in October were on the market for less than a month.

These days, the thing driving home prices upward is a lack of homes for sale. Where there are more interested home buyers than available homes to buy, prices rise. Of course, the quickest solution to this problem is building more homes. Prices will begin to moderate when more new homes are being built and buyers have more choices. That’s why there’s been so much attention paid lately to builder confidence, new home sales, and housing construction numbers. In short, the new home market is important to home buyers and sellers regardless of whether they are buying a brand new home or an older one. One recent measure of the new home market is the Mortgage Bankers Association’s Builder Application Survey – which measures mortgage application demand for new home purchases. The survey’s most recent results show a 16.1 percent year-over-year improvement from October 2016 and a 23 percent increase over September’s results. The improvement indicates there’s been a surge in demand to buy new homes, which is good news for the market. Lynn Fisher, MBA’s vice president of research and economics, says the increase is the strongest this year, though some of that is due to the recent hurricanes. “October registered the strongest growth rate in applications so far this year, following September’s hurricane related decrease,†Fisher said.