Tag Archives: Home Sales

Existing-home sales soared 6.5 percent in July to an annual sales rate of 5.39 million--the highest level since November 2009--as the price of a single-family home slipped 0.2 percent, the National Association of Realtors (NAR) reported Wednesday. Despite the month-over-month decline, the median price of an existing-home was $213,500, 13.7 percent ahead of the price in July 2012. It was the strongest yearly price gain since October 2005.

The California real estate market continued to experience rising home prices and strong sales in July, but negative equity still remains a significant challenge, according to a report from PropertyRadar. Out of the 6.8 million California homeowners with a mortgage, 26 percent, or 1.8 million, were underwater as of July. Another 500,000 are barely managing to stay above water, with no more than 10 percent of equity in their home. This means about one third, or 2.3 million homeowners, are still unable to sell due to lack of equity.

Median home prices dipped month-over-month in July, but still experienced a sharp rise from last year, according RE/MAX's latest housing survey covering 52 metropolitan areas. Homes in July sold for a median price of $189,950, down 2.1 percent from June, but up by 11.5 percent from July 2012. While inventory was down compared to last year and the prior month, the decreases were more conservative, which means home price gains should slow, according to RE/MAX.

The positive indicators seen in housing markets across the country are not a mirage but a true recovery, according to RealtyTrac VP Daren Blomquist and a panel of six real estate professionals who spoke during a roundtable discussion Friday. RealtyTrac ranked 100 markets in terms of recovery and found a smattering of markets from all regions in the top 20. Blomquist said the defining factors for where a market landed on the ranks were location and employment.

The second quarter saw modest gains in home sales in Connecticut, according to the Warren Group. Second-quarter sales of single-family homes totaled 6,898, a nearly 1 percent increase over Q2 2012. In June alone, home sales were up 0.4 percent (the second straight month of increases) to a total of 2,602.

Led by multifamily activity, new housing permits and starts rose in July with new construction, continuing a shift from single-family homes. The Census Bureau and HUD reported Friday builders broke ground on new homes at a seasonally adjusted annual rate of 896,000 units, up 5.9 percent from June, and filed permits for construction of 943,000 new units, up 2.7 percent from June. Economists surveyed by Bloomberg had expected the pace of total starts to increase to 900,000 and total permits to increase to 918,000.

Over the past four years since the recession ended, GDP has grown only 9 percent, Freddie Mac revealed in a recent analysis. At the current rate, the ""U.S. has experienced the weakest economic recovery coming out of a recession in the Post-War era,"" said Frank Nothaft, Freddie Mac VP and chief economist. Despite the ""frustratingly slow"" growth rate, the GSE expects the housing sector to aid the sluggish economic recovery in three ways.

The National Association of Home Builders' Housing Market Index (HMI)--a measure of builder confidence--increased again in August, climbing three points to 59, its highest reading since November 2005, the group reported Thursday. The index has improved 15 points (34 percent) in the last three months. At the same time, the index reading for the Midwest rose to a record high (64), and the reading for the South hit the highest level (56) since April 2006. While NAHB's national survey began in January 1985, the regional readings began in December 2004.

The pace of inventory declines appears to be slowing, which may in turn slow price appreciation in some markets, according to Realtor.com. ""Dramatic national year-over-year inventory declines have evaporated,"" Realtor.com said in its National Housing Trend Report released Tuesday. National housing inventory declined 5.24 percent year-over-year in July, which is a slowdown from the 16.47 percent year-over-year decline reported in January. At the same time, the number of markets with declining inventory year-over-year decreased to 118 in July, down from 125 markets in June.

During a Bipartisan Policy Center forum Tuesday, experts generally agreed the housing market is on the path to recovery, but the strength of the national recovery remained in question. According to Douglas G. Duncan, chief economist at Fannie Mae, we may be in a recovery, but it has been the ""weakest recovery since World War II"" when considering income growth. Richard Smith, CEO and president of Realogy, took a more optimistic approach and stated we are in the early stages of a ""fairly strong recovery,"" with prices reacting to inadequate supply.