Tag Archives: Home Sales

After rising in the third quarter, overall economic growth is expected to decline this quarter and in early 2013, according to Fannie Mae. However, the GSE anticipates further strengthening in the housing market. Economists at Fannie Mae anticipate economic growth of less than 2 percent for the first half of 2013 followed by more accelerated growth for the remainder of the year. Fannie Mae anticipates a 7.5 percent rise in home sales over the course of 2013 after this year's 10.2 percent increase.

Foreclosure inventory in California continued its steady decline in November, according to data from ForeclosureRadar. The total number of preforeclosures, foreclosures scheduled for sale, and REOs fell 7.6 percent from October to November and declined by 31.8 percent from a year ago. ForeclosureRadar said, ""the significant decline in foreclosure inventory over the past year has contributed to what some are calling an 'inventory crisis' of total homes for sale."" The company attributes foreclosure cancellations as part of the reason for the decline.

Builder confidence continued to improve in December as the Housing Market Index (HMI) rose two points to 47, its highest level since April 2006, the National Association of Home Builders reported Tuesday. It was the eighth straight monthly increase in the index and matched economist expectations.

The housing market has managed to be one of the few areas in the economy that is ""essentially unshaken"" by fiscal cliff uncertainties, according to a commentary from the Wells Fargo Securities Economics Group. Based on recent moves from the Federal Reserve, the commentary further noted the Fed ""appears to be banking on a housing recovery."" Last week, the Fed announced plans to continue buying $45 billion in long-term securities amid the expiring Operation Twist. The Fed also maintained its pace of buying $40 billion in MBS. In addition to actions from the Fed, the housing market has gained support from other factors such as an improving unemployment rate, increasing home prices and sales, and decreasing foreclosures.

The expectation for prices to continue rising is creating urgency among consumers to buy now, according to a Redfin survey of 1,084 active homebuyers. The percentage of homebuyers who believe prices are bound to move higher in the next 12 months increased to 71 percent in the fourth quarter from 61 percent in third quarter, according to the survey. While rising prices are causing some buyers to purchase now, low inventory is prompting others to hold off on their search.

Home sales in California displayed a typical seasonal decline in November and fell month-over-month, but the median price posted both monthly and yearly gains, San Diego-based DataQuick reported.

Consumers are becoming more positive toward the idea of homeownership as home prices rise and the threat of delinquencies and foreclosures subside, Trulia reported Wednesday. Confidence in future ownership is especially prevalent among young renters. According to Trulia's American Dream survey, 93 percent of renters between the ages of 18 and 34 plan to purchase a home some day. For 31 percent of renters, that ""some day"" is actually within the next two years, an increase from 28 percent in May 2012 and 22 percent in January 2011.

A new report from Zillow shows home sellers in the West tend to have the greatest advantages over buyers when it comes to negotiation, while buyers in the Midwest and Mid-Atlantic areas are likelier to come out of a sale with more left in their wallets. With the exception of Washington, D.C., the top sellers' markets are all in the West, with six of the top eight located in California. Non-Golden Gate State entries include Las Vegas, Nevada; Seattle, Washington; and Phoenix, Arizona.

In Southern Nevada, short sales still proved to be a popular trend as the housing market moves further away from foreclosures, according to data from the Greater Las Vegas Association of REALTORS (GLVAR). Although the percentage of existing homes sold through the short sale process declined in November, the percentage is still in record level territory.

The recovery in home sales and prices is taking shape, but will it further solidify, even in the hardest hit markets? Pro Teck Valuation Services and Collateral Analytics say they think the recovery will continue in hard-hit markets such as Sacramento, Phoenix, Las Vegas, and Riverside-San Bernardino ""because prices are still lower than fundamental market drivers"" such as employment. The report also discussed the role of consumer sentiment in the residential market and explained how expectations can reinforce trends and build momentum.