-Home Sales at Highest Level Since 2008

DAILY REAL ESTATE NEWS | FRIDAY, SEPTEMBER 25, 2015

Sales of newly built single-family homes increased nearly 6 percent in August, reaching a seasonally adjusted annual rate of 552,000 units, the Commerce Department reported Thursday. That is the best monthly figure in new-home sales since February 2008. However, the number does still remain far off from the 706,000 unit-pace that is considered the 30-year historic average in new-home sales. 

Read more: Cementing Partnerships in New Construction

"We continue to hear from our members that more serious home buyers are returning to the market," says Tom Woods, chairman of the National Association of Home Builders. "Builders are gradually adding inventory to meet future demand as they handle shortages of lots and labor."

The Northeast posted the highest gains of any other region in the U.S., with new-home sales surging 24.1 percent in August. The South also posted a 7.4 percent month-over-month increase and the West saw a 5.4 percent increase in new-home sales. The Midwest was the only region in the U.S. to see new-home sales drop in August, falling 9.1 percent.

Overall, the inventory of new homes for-sale reached 216,000 units in August, a 4.7-month supply at the current sales pace.

"Today's report indicates the release of pent-up housing demand as the overall economy strengthens, consumer confidence grows and mortgage interest rates remain low," says David Crowe, NAHB's chief economist. "The housing market should continue to move forward at a modest but more persistent pace throughout the rest of 2015."

Source: National Association of Home Builders and "New Home Sales Highest Since 2008," CNNMoney (Sept. 24, 2015)

Bad Winter Coming? 10 Ways to Get Ready

Daily Real Estate News | Thursday, September 24, 2015

With a particularly strong El Niño cycle brewing in the Pacific Ocean this year — it may develop into the worst on record, scientists say — this winter could pack a wallop of weather disturbances on par with recent years.

Don't Be Left Out in the Cold
Cold Weather, Warm Home
Spruce Up That Listing Before Winter
Remind Clients: Winter Prep Saves Money

Those living in colder climates are wise to prepare, whether they're sellers needing to clear walkways and maintain a furnace in good condition or buyers eager to know that their future home will be well-insulated and energy efficient to avoid surprises after they move in. Knowing how to winterize a home is more than half the battle.
There are 10 common winter problems you can help your clients avert, and now is the perfect time to start planting the bug in their ears. Find out what causes these issues and what the solutions are in our article, "Help Clients Prepare for Weather Challenges."
—REALTOR® Magazine

Drop in Rates Ramps Up Mortgage Demand

DAILY REAL ESTATE NEWS | WEDNESDAY, SEPTEMBER 23, 2015

Mortgage applications – for both refinancings and home purchases – surged nearly 14 percent for the week ending Sept. 18, according to the Mortgage Bankers Association.  The surge follows on the heels of the Federal Reserve’s decision not to raise interest rates last week, which helped push mortgage rates down and entice more borrowers.

Read more: Fed Votes to Hold Off on Rate Hike, For Now

Refinance applications rose 18 percent week-to-week, while home purchase applications increased 9 percent. Home purchase applications are now at the highest level since June and are 27 percent higher than the same week one year ago, MBA reports.

"The increase in purchase activity was solely driven by applications for conventional purchase loans, which reached the highest level since June 2013,” says Mike Fratantoni, MBA’s chief economist. “That time period was the so called ‘taper tantrum,’ when mortgage rates picked up significantly following Fed communication to slow the pace of its asset purchases. Overall, the purchase market continues to show strength.”

Mortgage rates moved lower during the week but by the end of the week the average of the 30-year fixed-rate mortgage was unchanged from the previous week at 4.09 percent, MBA reports. MBA notes that mortgage rates were moving lower as of Tuesday, amid a sell-off in the stock market. Rates this week had fallen to the lowest level in four months, MBA reports.

Source: “Weekly Mortgage Applications Surge 13.9% on Rate Dips,” CNBC (Sept. 23, 2015)

In Winter, These Housing Markets Are Hot

DAILY REAL ESTATE NEWS | WEDNESDAY, SEPTEMBER 23, 2015

As temperatures cool, many housing markets across the country also see a thaw in sales. In fact, 80 percent of U.S. counties see a slowdown in the time it takes to sell a home starting in September, according to realtor.com®. But a few markets buck that trend.

NAR's Latest Housing Report: Existing-Home Sales Stall in August

In some markets, the cold weather heats up home-buying, such as in Colorado’s San Miguel County, a locale nestled in the Rocky Mountains. Telluride, Colo., sees its median days on the market drop significantly after the fall season and the market usually has its fastest performance in December.

Other housing markets like Tucson, Ariz. in Pima County; Meagher County in Montana; and Catron County in New Mexico also tend to perform strongly in the winter months, according to a new analysis by realtor.com®.

In some of the nation’s hottest areas, the housing markets actually improve in the fall. For example, Arizona’s Yuma County – where temperatures hit an average high of 107 degrees Fahrenheit in July – sees its median days on the market increase in June and August.

Areas in Louisiana, Florida, and Georgia – where temperatures mostly remain mild throughout the year – also tend to see home sales perform strongly in the winter. In Baton Rouge, La., the prime home-buying season tends to kick off in September and lasts until November.

“It’s a function of how accommodating the weather is, rather than a straight relationship to temperature,” says Jonathan Smoke, realtor.com®’s chief economist. “Think about how half of the country can have severe winter weather, and how disruptive snow and ice are on real estate. You can’t see it, you can’t build, you can’t inspect, you can’t move.”

Severe weather can dampen the mood among buyers for real estate. In New York’s Onondaga County, homes tend to stay on the market twice as long in the winter as in the summer, according to realtor.com®.

View an animated map at realtor.com® to see the weather effect on real estate.

Source: 'Where to Find the Hottest Markets in the Coldest Months of the Year,' realtor.com® (Sept. 21, 2015)

Drop in Rates Ramps Up Mortgage Demand

Daily Real Estate News | Wednesday, September 23, 2015

Mortgage applications – for both refinancings and home purchases – surged nearly 14 percent for the week ending Sept. 18, according to the Mortgage Bankers Association.  The surge follows on the heels of the Federal Reserve’s decision not to raise interest rates last week, which helped push mortgage rates down and entice more borrowers.

Read more: Fed Votes to Hold Off on Rate Hike, For Now

Refinance applications rose 18 percent week-to-week, while home purchase applications increased 9 percent. Home purchase applications are now at the highest level since June and are 27 percent higher than the same week one year ago, MBA reports.
"The increase in purchase activity was solely driven by applications for conventional purchase loans, which reached the highest level since June 2013,” says Mike Fratantoni, MBA’s chief economist. “That time period was the so called ‘taper tantrum,’ when mortgage rates picked up significantly following Fed communication to slow the pace of its asset purchases. Overall, the purchase market continues to show strength.”
Mortgage rates moved lower during the week but by the end of the week the average of the 30-year fixed-rate mortgage was unchanged from the previous week at 4.09 percent, MBA reports. MBA notes that mortgage rates were moving lower as of Tuesday, amid a sell-off in the stock market. Rates this week had fallen to the lowest level in four months, MBA reports.
Source: “Weekly Mortgage Applications Surge 13.9% on Rate Dips,” CNBC (Sept. 23, 2015)

Top Housing Markets for First-Time Buyers

DAILY REAL ESTATE NEWS | TUESDAY, JULY 21, 2015

The number of first-time home buyers is on the rise, reaching a 32 percent share of existing-home sales in May – the highest since September 2012, according to the National Association of REALTORS®.

Read more: Where Should First-Time Buyers Live?

Which cities hold some of the best deals for first-time buyers? WalletHub recently compared 300 U.S. cities to find the most favorable housing markets for first-time home buyers. Researchers analyzed markets for 18 key metrics, ranging from housing costs to property taxes and crime rates. In the study, large cities had populations of more than 300,000 people; midsize cities had populations of 150,000 to 300,000; and small cities had a population of fewer than 150,000.

The following are the best large, midsize, and small cities for first-time home buyers, according to WalletHub's analysis:

Source: "2015's Best and Worst Cities for First-Time Home Buyers," WalletHub (July 2015)

Home Values Pull Up in More States

DAILY REAL ESTATE NEWS | THURSDAY, SEPTEMBER 24, 2015

Home values in 29 states and the District of Columbia are within their historically normal range, according to Freddie Mac's latest housing index.

The Multi-Indicator Market Index now stands at a value of 81, indicating a national housing market that is on its outer range of stable activity. The MiMi has improved 6.17 percent year-over-year and has rebounded 37 percent since its all-time low in October 2010. Still, the index remains significantly off its high of 121.7.

Housing Markets to Watch

In Winter, These Housing Markets Are Hot

Top Housing Markets for First-Time Buyers

Affordability Snapshot for the Top 100 Metros

The MiMi bases the stability of housing markets on home-purchase applications, payment-to-income ratios, proportion of on-time mortgage payments, and local employment. The states with the highest MiMi values are California, District of Columbia, Hawaii, Montana, North Dakota, and Utah. Forty-six of the 100 metro areas the MiMi analyzes also have values in the stable range, with Fresno, Calif.; Austin, Texas; Honolulu; Salt Lake City; and Los Angeles among the top performers.

"Nationally, all MiMi indicators are heading in the right direction for the second consecutive month and improving more than 6 percent from the same time last year," says Len Kiefer, Freddie Mac's deputy chief economist. "Florida has some of the most improving housing markets in the country, largely a reflection of more borrowers becoming current on their mortgage payments as the local employment picture improves and house prices rebound. The one area of the country that has been slow to respond has been the Northeast. However, we've started to see these housing markets turn around, especially in Pennsylvania, Connecticut, New Hampshire, Vermont, and Maine."

Many markets in the Northeast are still weak, Kiefer says, but "they're steadily trending in the right direction, and their pace of improvement is accelerating. Overall, the West remains especially strong, with many markets posting double-digit growth in their MiMi purchase-applications indicator compared to a year ago and helping to keep the country on pace for the best year of home sales since 2007."

Source: Freddie Mac