Tag: Property management NYC

The number of new homes available for sale at the end of August was 3.6 percent higher than the previous month, according to new data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. The improvement brings inventory to its highest level since May 2009. That’s encouraging news for home buyers, as a lack of homes for sale has been the primary factor pushing prices higher in many markets. As more new homes are built, however, buyers will have more homes to choose from and the extra supply will help moderate price increases and balance out the market. Still, despite the good news, the latest residential sales report also shows the number of new homes sold last month down 3.4 percent. According to Robert Dietz, the National Association of Home Builders’ chief economist, the decline may’ve been due to the recent hurricanes – and they may continue to affect upcoming data. “We may see more volatility in the next few months as communities affected by the recent hurricanes experience construction delays and other economic disruptions,†Dietz said. More here.

When a contract to buy a house is signed, the sale is considered pending until the mortgage process plays out and the deal is closed. Because there are usually a few weeks in between the time an offer is accepted and the sale is finalized, pending sales are a good indicator of where existing-home sales are headed in the coming months. That’s why the National Association of Realtors Pending Home Sales Index tracks contract signings – as a way of forecasting what’s ahead for the housing market. In August, the index showed a 2.6 percent decline from the month before. Lawrence Yun, NAR’s chief economist, says the recent hurricanes have something to do with the drop and it may ultimately mean home sales fall slightly below last year’s level. “The supply and affordability headwinds would have likely held sales growth just a tad above last year, but coupled with the temporary effects from Hurricanes Harvey and Irma, sales in 2017 now appear will fall slightly below last year,†Yun said. “The good news is that nearly all of the missed closings for the remainder of the year will likely show up in 2018, with existing sales forecast to rise 6.9 percent.†More here.

A new survey from the National Association of Realtors shows Americans are optimistic about their economic situation and increasingly think now is a good time to buy or sell a home. The quarterly survey found a spike in both the number of current renters who think now is a good time to buy a house and homeowners who say it’s a good time to list their house. In fact, among current homeowners, the number who said it was a good time to sell hit a record high. Lawrence Yun, NAR’s chief economist, says the optimism is largely driven by economic conditions. “Jobs are plentiful, wage growth is finally showing signs of life, home values are up considerably in the past five years and the stock market is at record highs,†Yun said. “The economy is not perfect, and growth overall is still sluggish, but the financial health of the typical household looks as healthy as it has since the recession.†The survey’s results also show increasing positivity among Americans about their personal financial situation and their outlook for the next six months.

Since the housing crash and financial crisis, a slow and steady recovery has taken place. Home prices, for example, have been rising now for a few years and, in some markets, have surpassed their previous peaks. But though there has been progress, there is an unevenness about the recovery. For example, the higher end of the housing market has rebounded much quicker than the lower end has. And, according to Zillow chief economist, Dr. Svenja Gudell, it’s led to some disparity between the two ends of the housing market. “Most new construction has been at the higher end of the market, so demand for the limited supply of entry-level homes is pushing up their values, but these homes also lost more value when the bubble burst,†Gudell says. “Many of these homeowners are still waiting to see their homes come back to where they were about 10 years ago.†So what does this all mean? It means limited supply will lead to more competition for the entry-level homes that are available. But, as demand pushes home prices higher, there may also be more current homeowners deciding to sell their starter homes in search of something bigger. As that happens, prices will level off and there will be more choices for buyers looking for an affordable, entry-level home. More here.

The market for newly built single-family homes is an important barometer for the health of the overall housing market. Where new homes are being bought and sold, home prices and inventory levels are usually more balanced and home buyers have more choices. For that reason, the National Association of Home Builders tracks how builders perceive the market now and what their expectations are for the coming months. In September, the NAHB’s Housing Market Index found builder confidence down slightly from the month before, though it remains at a high level. According to NAHB chairman, Granger MacDonald, the recent hurricanes may have something to do with the decline. “The recent hurricanes have intensified our members’ concerns about the availability of labor and the cost of building materials,†MacDonald said. “Once the rebuilding process is underway, I expect builder confidence will return to the high levels we saw this spring.†Regionally speaking, the NAHB’s survey found that the West and Northeast have seen confidence levels rise over the past three months, while the Midwest and South have experienced slight declines. More here.