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Existing-Home Sales: Increase Reaches Highest Level Since Before Great Recession

Posted by on Jan 25, 2021 in Market, Neighborhood, Uncategorized | 0 comments

December hit another historic peak for existing-home sales, experiencing the highest level since 2006 after rising 0.7 percent from the previous month. According to the latest data from the National Association of REALTORS® (NAR), year-over-year, existing-home sales increased 22.2 percent.

Additional market data gives a better overview of the current environment: sales are still driving prices up, as is the persistent inventory shortage. The median existing-home price for all housing types in December increased 12.9 percent to $309,800—this is the 106th consecutive month of year-over-year gains. As for inventory, the end of December saw a total of 1.07 million units, a decline of 16.4 percent year-over-year. Unsold inventory was at a 1.9-months supply in December, down from 2.3 months in November.

By Region:

Midwest
Existing-Home Sales: 1.59 million (+26.2%YoY)
Median Price: $235,700 (+13.7%YoY)

Northeast
Existing-Home Sales: 930,000 (+27.4% YoY)
Median Price: $362,100 (+19.0% YoY)

South
Existing-Home Sales: 2.86 million (+20.7% YoY)
Median Price: $268,100 (+11.3% YoY)

West
Existing-Home Sales: 1.38 million (+17.9% YoY)
Median Price: $467,900 (+14.2%YoY)

How the Industry Is Responding:

“Home sales rose in December, and for 2020 as a whole, we saw sales perform at their highest levels since 2006, despite the pandemic. What’s even better is that this momentum is likely to carry into the new year, with more buyers expected to enter the market. Yun predicts a continuation of the strong activity that’s currently taking place in the housing market and in the overall economy. Although mortgage rates are projected to increase, they will continue to hover near record lows at around 3 percent. Moreover, expect economic conditions to improve with additional stimulus forthcoming and vaccine distribution already underway.

“To their credit, homebuilders and construction companies have increased efforts to build, with housing starts hitting an annual rate of near 1.7 million in December, with more focus on single-family homes. However, it will take vigorous new home construction in 2021 and in 2022 to adequately furnish the market to properly meet the demand.” — Lawrence Yun, Chief Economist, National Association of REALTORS®

“NAR will work with the incoming Biden administration in pursuit of policies promoting housing affordability and accessibility. We were pleased with the homebuyer tax credit President Biden proposed as a candidate and we look forward to continuing our work with Congress and the White House. We will aim to find common ground, especially related to ways of boosting home supply and working toward solutions that will protect and support homeownership and America’s broader real estate industry.” — National Association of REALTORS® President Charlie Oppler

“The housing market has been a bright spot of the economic recovery thus far. Today’s [at press time] report on existing-home sales showed yet another monthly increase in the pace of sales to 6.76 million units. The December data also capped off 2020 as the strongest year for home sales since 2006. However, there is still disproportionate growth in the higher price tiers, as evidenced by an elevated median home price of $309,800—up 13 percent from a year ago. This was consistent with data from MBA’s Weekly Application Survey, which revealed that December average loan sizes were the highest in our survey’s history.

“Home-price appreciation continues to be driven higher by tight inventory, even as home building has picked up significantly. Housing inventory last month fell 16 percent to 1.07 million units, which represented a 1.9-month supply of homes on the market—an all-time low. More acute affordability challenges will emerge if inventory stays this tight and home-price growth continues to accelerate. This in turn would be especially challenging for first-time homebuyers, who make up a third of all home sales.” — Joel Kan, AVP of Economic and Industry Forecasting, Mortgage Bankers Association

By RISMedia Staff

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New York housing market continues to be hot in September

Posted by on Oct 25, 2020 in Uncategorized | 0 comments

Albany, NY – October 22, 2020 – As cooler weather approaches, the New York State real estate market continues to heat up with strong buyer activity amid continued low inventory, according to the housing report released today by the New York State Association of REALTORS®.

While adhering to COVID-19 guidance, closed sales in New York State jumped 12.2 percent – from 11,878 homes last September to 13,322 units in September 2020. Pending sales were also on the rise, escalating from 11,264 homes to 16,813 units – a leap of 49.3 percent. Year-to-date, pending sales are also up 3 percent in 2020 with 110,994 homes compared to 107,749 in 2019.

New listings were on the rise as well, up 13.6 percent from 18,542 homes to 21,062 units in year-over-year comparisons. The statewide median sales price of $324,900 in September represented an increase of 17.5 percent compared to a $276,625 median price last year at the same time.

Housing inventory continued to be low in the Empire State in September. The number of homes for sale fell 21.5 percent from 67,107 units in September 2019 to 52,687 homes last month. Months supply of inventory also continued to drop off, dipping 22.4 percent – from 5.8 months to 4.5 months – compared to the same time last year. A 6 month to 6.5 month supply is considered to be a balanced market.

Mortgage rates continue to aid the strong housing market, falling yet again in September. According to Freddie Mac, the monthly average on a 30-year fixed rate mortgage in September fell to 2.89 percent. This is the tenth consecutive month the average monthly rate has decreased.

Data and analysis compiled for the New York State Association of REALTORS® by Showing Time Inc.

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A Market Turnaround: Existing-Home Sales Make Record Climb in June

Posted by on Jul 23, 2020 in Uncategorized | 0 comments

By RISMedia Staff

According to the National Association of REALTORS® (NAR), existing home sales increased at a record pace in June, a significant turnaround after three consecutive months of sales declines due to the pandemic. Completed transactions for all property types increased 20.7 percent to a seasonally adjusted rate of 4.72 million. Year-over-year, however, existing-home sales are still down 11.3 percent.

The median sales price for existing homes was $295,300 in June, up 3.5 percent YoY, and prices increased across every region. Unsold inventory is currently at 4.0-months supply, down from 4.8 in May and 4.3 in June 2019. Days on market was at 24 for June, down from 26 days in May and 27 days in June 2019.

For single-family properties, the seasonally adjusted annual rate for sales was 4.28 million in June, up 19.9 percent in May and down 9.9 percent YoY. The median price was $289,600—a 3.5 percent increase YoY. For condos and co-ops, sales recorded at a seasonally adjusted annual rate of 440,000 units in June. That’s up 29.4 percent from May and down 22.8 percent YoY. The median existing condo price was $262,700, increasing 1.4 percent YoY

By Region:

Midwest
Existing-Home Sales: 1.1 million (-13.4%YoY)
Median Price: $236,900 (+3.2%YoY)

Northeast
Existing-Home Sales: 490,000 (-27.9% YoY)
Median Price: $332,900 (+3.6% YoY)

South
Existing-Home Sales: 2.18 million (-4.0% YoY)
Median Price: $258,500 (+4.4% YoY)

West
Existing-Home Sales: 950,000 (-13.6% YoY)
Median Price: $432,600 (+5.4%YoY)

How the Industry Is Responding:

“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown. This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue. Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply. Homebuyers considering a move to the suburbs is a growing possibility after a decade of urban downtown revival. Greater work-from-home options and flexibility will likely remain beyond the virus and any forthcoming vaccine.” — Lawrence Yun, Chief Economist, National Association of REALTORS®

“It’s inspiring to see REALTORS® absorb the shock and unprecedented challenges of the virus-induced shutdowns and bounce back in this manner. NAR and our 1.4 million members will continue to tirelessly work to facilitate our nation’s economic recovery as we all adjust to this new normal.” — Vince Malta, President, National Association of REALTORS®

“Sales were buoyed thanks to some of the lowest mortgage rates on record giving Americans increased buying power. Buyers are still catching up after missing out on the traditional spring purchase season, which was delayed due to stay-at-home orders. As we continue into the summer months, expect increased competition for homes fueled by tight inventory and exceptionally high demand.” — Bill Banfield, Executive Vice President of Capital Markets, Quicken Loans

“MBA’s data has shown a sharp rebound in mortgage purchase applications once states started reopening in May, with activity now surpassing year-ago levels for nine straight weeks. It is thus no surprise that existing-home sales, which are recorded at closing, picked up in June to their highest level since March. We continue to highlight the extraordinarily low level of housing inventory, both in terms of the absolute number of properties on the market, as well as months’ supply. Constrained supply will continue to support home prices in the months ahead, while also making it challenging for some would-be buyers to reach the market. Record-low mortgage rates should keep demand strong, even as the unemployment rate remains extremely elevated.” — Mike Fratantoni, SVP & Chief Economist, Mortgage Bankers Association

“The resurgence of housing demand began in May and has continued into the first half of July in many areas, bringing sales paces back near 2019 levels. Inventory remains low following the listing contraction in April and May in response to the pandemic. This ratcheted up price growth alongside a temporary low in COVID-19 cases; stimulating demand. The recent resurgence in case numbers is likely to impact demand and continue to keep inventory at suppressed levels, but agents and consumers have now had ample time to adapt to social distancing practices and virtual tools, so the impact on sales may be less than we saw in April. The path of the housing market in the near term is going to be closely linked to how the economy progresses. With unemployment supplements expiring and most PPP loans having run their course, we need an appropriate follow-up to the CARES Act.” — Ruben Gonzalez, Chief Economist, Keller Williams

For more information, please visit www.nar.realtor.

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Home prices rise in New York State for fifth consecutive year

Posted by on Feb 20, 2019 in Uncategorized | 0 comments

According to the New York State Association of Realtors;

Home prices rise in New York State for fifth consecutive year

For the fifth consecutive year home prices appreciated in New York State. Home prices in 2018 rose 6.0 percent above 2017 figures.  The $265,000 median sales price at the end of 2018 topped the 2017 median price of $250,000.  In 2014, the median price was $225,000.

High home prices usually coincide with low inventory. In 2018, the number of homes for sale dropped 0.3-percent compared to 2017. In fact, compared to 2010, inventory has dropped from 87,621 homes to just 59,889 in 2018. With fewer homes to choose from coupled with home prices rising higher than wage increases, buyers found 2018 a difficult year overall to purchase homes.

There were 132,022 closed sales in 2018, a decrease of 2.5 percent from the 135,408 sold in 2017.  There were 34,147 closed sales in the 2018 fourth quarter, a decrease of 4.3 percent from the 35,686 closed sales in the 2017 fourth quarter. The 10,267 closed sales in December 2018 represented a decrease of 11.5 percent from December 2017. For the first time in five years, closed sales fell in 2018 compared to the prior year.

Hamilton County saw the biggest increase in closed sales at 14.7 percent while Chenango County experienced the largest decrease of 16.3 percent. Regarding average home prices, Lewis County saw the highest increase of 25.3 percent in 2018 – from $95,000 to $119,000 – over the prior year.

There was good news for sellers in 2018 as they received on average, 97.3 percent of their original list price at sale, a year-over-year improvement of 0.4 percent. It is the eighth consecutive year that the percent of list price received has risen for home sellers.

Homes that ranged in price from $100,001 to $150,000 sat on the market for the shortest amount of time in 2018 at 60 days on average. Those above $500,000 were on the market the longest, 83 days on average.

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Housing Affordability to Worsen in Spring

Posted by on Feb 22, 2018 in Uncategorized | 0 comments

As mortgage rates continue to inch higher, consumers are bracing for steeper homebuying costs this spring. Households earning the national median income of $68,000 a year could afford about 59.6 percent of new and existing homes that were sold in the fourth quarter of 2017, according to the National Association of Home Builders. The trade group’s latest report looks at home prices, mortgage interest rates, and median household income across 238 U.S. metros.

 

“Buyers should be prepared,” says NAHB Chief Economist Robert Dietz. “It’s going to be more expensive to afford a house over the course of 2018. … Interest rates went up a little bit, and home prices went up as well.”

Gauge affordability in your market, using NAR’s Housing Affordability Index.

 

Mortgage rates have increased for the past five consecutive weeks. Lawrence Yun, chief economist for the National Association of REALTORS®, predicts that mortgage rates will reach 4.5 percent by the second half of the year. Inventory shortages in both the new- and existing-homes sectors, along with high buyer demand, have prompted home prices to escalate, fueling bidding wars.

 

Further, the shakeout from newly enacted tax reform legislation may have an impact on some markets. “The new tax law is expected to contribute to price softness in some high-cost, high-tax markets now that deductions for income and property taxes are capped at $10,000 per year,” Dietz says.

 

According to NAHB, housing affordability may be most depressed in California. Every market in the state topped the group’s list of least affordable metros in the country, with San Francisco claiming the number one spot. The median list price in San Francisco is $1.2 million, according to realtor.com®. Los Angeles, Anaheim, San Jose, and Santa Rosa also ranked high for low affordability, according to NAHB’s index.

 

On the other hand, the Syracuse, N.Y., and Youngstown, Ohio, markets are the most affordable in the country. About 88.3 percent of the homes sold in Syracuse and Youngstown were affordable to households earning the areas’ median incomes of $54,600 and $68,000, respectively. Other markets with the highest affordability include Indianapolis; Scranton, Pa.; and Columbia, S.C. The most affordable smaller market is Cumberland, Md., where residents earning the median income of $53,900 can afford 96.9 percent of the homes sold there.

 

Source: “Will It Become Harder to Afford a Home? Experts Say Yes,” realtor.com® (Feb. 9, 2018) and National Association of Home Builders

 

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Real Estate News November 2017

Posted by on Nov 15, 2017 in Uncategorized | 0 comments

Long Island Housing Data for October 2017

Published Nov 14, 2017

The October 2017 closed median home price for Long Island, which includes Nassau, Suffolk, and Queens’ housing data, was $440,000 representing a 6% increase over last year.

Nassau County reported a $500,000 closed median home price in October representing a 6.4% increase over $470,000 reported by MLSLI last year. Suffolk County reported a closed median price of $360,000, which represents a 6.2% increase over a year ago. Queens reported a closed median home price of $555,000, representing an increase of 12.7% over $492,500 reported in October 2016.

The total number of Long Island residential inventory in October 2017 was 15,654 representing a 9.1% decrease over last year. The current months of supply is 4.5, compared to 5.4 in October 2016. The months of supply is the measure of how many months it would take to exhaust the current number of homes on the market to sell.

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