New Home Sales Numbers Are In: July SOARS to 8 Year High

A recent new home sales report for July showed that sales of newly built homes increased 12.4 percent since June, and rose 31.3 percent year-over-year. This surge marks the highest point in almost eight years.

“New homes are being purchased at a furious pace, and it could give the housing market the added push it’s been waiting for,” says Quicken Loans vice president Bill Banfield. “With more new homes purchased by move-up buyers, it provides an increase in housing choice for first time buyers looking for their starter house.”

Data released found that the new home sales seasonally adjusted annualized rate for July was 654,000, the highest pace of sales since October 2007. Actual new homes sold so far this year are up 13 percent over the first seven months of 2015. This July’s new home supply remains tight at 4.3 months of supply.

The median sales price of new houses sold in July 2016 was $294,600; the average sales price was $355,800. The seasonally adjusted estimate of new houses for sale at the end of July was 233,000. This represents a supply of 4.3 months at the current sales rate.

“It’s great to see evidence of much-needed growth and a shift toward more affordable prices in July’s report,” says realtor.com Chief Economist Jonathan Smoke. “It’s also good news that we are finally seeing builders shifting toward more affordable price points. And given the limited number of homes currently for sale, we can be confident that the decline in new home prices is a result of market shift and not discounting by builders.”

Source: RISMedia

August Scorches the Market Most in a Decade Says Realtor.com

A record-breaking summer for the residential real estate market continued in August, according to new monthly data on for-sale housing inventory and demand on Realtor.com®. Homes for sale on the site in August are moving two percent more quickly than last year as prices continue to reach new record highs.

“Summer 2017 was one of most competitive buying seasons that we have ever witnessed, fueled by historically low mortgage rates and inventory shortages that resulted in record-high prices, said Jonathan Smoke, chief economist for Realtor.com. “With the school year starting now in most of the country, we’re seeing some drop-off in demand, which may provide some relief for buyers weary from battling it out against other buyers all summer.”

The median age of for-sale listings on Realtor.com in August is expected to be 72 days, which indicates properties are selling two days faster than this time last year but four days slower than last month. In August most markets begin to slow down in response to the start of the school year, with inventory levels and market velocity moving away from peaks and sales beginning to decline.

The median home was listed for $250,000, eight percent higher than one year ago and virtually the same as last month. That extends this summer’s trend of record high prices and is a new peak for August.

For-sale housing inventory reached its apex last month and August now reflects the usual seasonal shift with the first monthly decline since January. Even with an estimated 475,000 new listings coming onto the market in August, the total inventory remains considerably lower than one year ago.

The median age of inventory in August is expected to be 72 days, down three percent from last year and up six percent from last month. The median listing price for August should reach a record high of $250,000, an eight percent increase year-over-year and flat compared to July.

The listing inventory in August should show a one percent decrease from July. Additionally, inventory should still show a decrease of eight percent year-over-year.

Realtor.com’s Hottest Markets received from 1.4 to 4.5 times the number of views per listing compared to the national average. In terms of supply, these markets saw inventory move from 21 to 39 days more quickly than the rest of the U.S. The hottest markets saw inventory movement slow down slightly as the median age increased by two days on average from July.

RDC_Hotness_Index_Aug

Key Takeaways from Realtor.com’s® August Hotness Index

California again dominated the list with 11 markets, but seven other states were represented (Texas, Colorado, Indiana, Ohio, Michigan, Washington and Tennessee).

  • Vallejo-Fairfield, Calif., continues its streak of 4 straight months atop the hottest markets.
  • The new entrants to the top 20 in August were Kennewick-Richland, Wash. and Waco, Texas.
  • The biggest gainer beyond the new entrants was Detroit, which moved up four spots and into the top ten.

Source: Realtor.com

Florida Realtors Assoc. Releases 2Q Wrap Up Data

ORLANDO, Fla. – Aug. 10, 2016 – Florida’s housing market reported more new listings, higher median prices and fewer days to a sales contract during the second quarter of 2016, according to the latest housing data released by Florida Realtors®. Closed sales of single-family homes statewide totaled 76,748 in 2Q 2016, up 1.4 percent over the 2Q 2015 figure.

“In the second quarter of 2016, Florida continued to add new jobs, which attracts new residents, encourages economic growth and strengthens the housing market,” says 2016 Florida Realtors President Matey H. Veissi. “Traditional housing sales increased statewide over the three-month period, while sales of distressed properties continued to decline. In another positive sign, new listings for single-family homes over the three-month-period rose 2.9 percent year-over-year, while new condo-townhouse listings rose 3.3 percent.”

The statewide median sales price for single-family existing homes in 2Q 2016 was $220,000, up 10 percent from the same time a year ago, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $163,000, up 5.2 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

Looking at Florida’s condo-townhouse market, statewide closed sales totaled 31,699 during 2Q 2016, down 2.7 percent compared to 2Q 2015. The closed sales data reflected fewer short sales – and rising traditional sales – over the three-month period: Short sales for condo-townhouse properties declined 42.2 percent while short sales for single-family homes dropped 36.7 percent. Meanwhile, traditional sales for condo-townhouse units rose 6.9 percent and traditional sales for single-family homes increased 14.4 percent year-over-year. Closed sales typically occur 30 to 90 days after sales contracts are written.

“Existing home sale prices throughout most of Florida’s metro areas are continuing to exhibit robust year-over-year growth,” says Florida Realtors Chief Economist Dr. Brad O’Connor. “This growth is attributable to simple economics, which is to say that demand is strong and supply is currently limited. The inventory of homes for sale at the more affordable end of the price spectrum – which includes the vast majority of distressed properties – continues to decline significantly, and new construction has not come close to making up the difference.”

In 2Q 2016, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 42 days for single-family homes and 50 days for condo-townhouse properties.

Inventory was at a 4.3-months’ supply in the second quarter for single-family homes and at a 6-months’ supply for condo-townhouse properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.59 percent for 2Q 2016, significantly lower than the 3.96 percent average recorded during the same quarter a year earlier.

Source: Florida Realtors

May Report: Broward Prices Pick up the Pace

While much of South Florida’s housing market has struggled through a rough spring, May proved to be a bright spot for Broward County.

Sales for both homes and condos spiked year-over-year, all while inventory held mostly steady, according to a new report from the Greater Fort Lauderdale Realtors association. A total of 1,671 single-family homes were sold in May, up 9.5 percent from the 1,526 sales made during May 2015. Sales for townhomes and condos also jumped by 9.5 percent, from 1,434 closed deals a year ago to 1,570 this May.

Those spikes in numbers are also a considerable improvement from April, which saw the pace of home sales slow year-over-year in both Broward and South Florida in general.

Despite the recent market volatility, prices are still rising at a steady clip. The median price to pick up a Broward condo or townhouse hit $145,000 in May, which grew by $10,000 from a year ago. Median prices for a single-family home also rose by $22,000, from $290,000 per home to $312,000.

Meanwhile, sellers took a breather during May, with only a slight rise in inventory for both sectors compared to last year. Listing inventory for single-family homes stood at 2,177 in May, an increase of only 1.2 percent year-over-year, while condo inventory showed even less growth with a 0.2 percent bump to 2,113 listings.

Fewer properties hitting the market and a faster sales pace could be a sign that Broward’s housing market is tightening, though it’s too early to tell if that trend will continue through the year.

To the south, Miami-Dade County has been hammered by declining sales and a surplus of inventory as homeowners look to cash in on ever-rising prices. Some analysts have said this will likely lead to a correction in the market and sellers start adopting more realistic pricing.

Source: The Real Deal