Tag Archives: Home Sales

Consumers continued to show increased optimism toward home price, rental price, and mortgage rate expectations, a sign that home purchase activity may see a boost in the coming months, according to results from Fannie Mae's latest National Housing Survey. The average 12-month home price change expectation jumped from 1.7 percent in November to 2.6 percent in December, the highest level since the survey's inception in 2010. To compare, the average price change expectation a year earlier was only 0.8 percent. The share of respondents who believe home prices will rise over the next year also reached its highest recorded level, increasing 6 percentage points to 43 percent.

The Pending Home Sales Index (PHSI) increased for the third straight month in November, improving 1.7 percent to 106.4, the National Association of Realtors reported Friday. Economists had expected a slightly fast, 1.8 percent increase to 106.7. The index, the NAR said, is at its highest level since April 2010.

New home sales jumped 4.4 percent in November to 377,000, the highest level since April 2010, the Census Bureau and Department of Housing and Urban Development reported Thursday. Economists surveyed by Bloomberg expected the report to show a sales pace of 375,000.

Economic indicators are never clear and are not isolated bits of data. The numbers released in the last week provided another example of that maxim.

No matter how foggy the haze is, economists typically dust off their crystal balls in December. However economic forecasts too often involve driving by looking in a rear-view mirror. Anticipating what might happen in the housing markets, with so many moving parts involved, can be the trickiest of all forecasts. Because housing is a unique expenditure--combining elements of investment and a service--it depends on a variety of elements: employment, income, interest rates, the regulatory environment, and even the weather.

After tracking home price trends in 25 metropolitan statistical areas (MSAs), Radar Logic found prices in October are now 6.9 percent higher than a year ago, according to the company's RPX Composite price. ""However, this increase was driven by a change in the composition of sales rather than price appreciation,"" Radar Logic stated in a recent report. Upon closer scrutiny, the analytics company explained the price increase is mainly the result of a decrease in distressed sales, or ""motivated sales,"" and the actual price increase for ""non-motivated sales"" is much smaller than the overall yearly gain.

Sixty-five percent of real estate professionals say home values will increase over the next six months, according to HomeGain's fourth-quarter survey. The third-quarter survey found 51 percent of professionals shared this optimistic view. Optimism is not as high among homeowners, 39 percent of whom say home values will rise over the next six months. This is up from 34 percent in the previous quarter. The outlook for the next two years is even more optimistic than the outlook for the next six months – both from real estate professionals and from homeowners.

Existing-home sales rose 5.9 percent in November to a seasonally adjusted annual rate of 5.04 million, the highest level since November 2009, the National Association of Realtors reported Thursday. Economist had expected the sales pace to improve to 4.9 million. The median price of an existing single-family home rose to $180,600 in November, up 10.1 percent from November 2011. November was the ninth consecutive month to see year-over-year price gains, maintaining the longest streak for yearly improvements since mid-2006.

The largest counties in the country displayed strong home price growth in November, but sales were weak, according DataQuick's most recent Property Intelligence Report (PIR). The company's PIR tracks valuation, REO inventory, and sales trends in the 42 largest counties on a monthly, quarterly, and yearly basis. Among the findings, DataQuick reported prices grew in 41 of the 42 counties month-over-month in November, and all 42 counties showed quarterly and yearly home price growth. Sales were dismal for the most part, with sales increasing in only 13 of the 42 reported counties month-over-month.

Despite a continuing surge in builder confidence, housing starts dropped 3.0 percent in November to 861,000 the Census Bureau and HUD reported jointly Wednesday. At the same time start activity for both September and October was revised lower. Applications for permits, according to the report, rose 3.6 percent to 899,000--the highest level since July 2008 as permit activity for October was revised slightly upward.