Tag Archives: Housing Supply

While many Americans paused their homebuying plans during the federal government's partial shutdown last month, purchase activity rebounded once the government reopened, with buyer competition more robust than expected, according to a Redfin. Out of the 22 markets covered in the brokerage's report, San Diego experienced the biggest increase in multiple-bid offers on homes for sale, while Boston saw the biggest drop.

The nation's foreclosure inventory has contracted for 18 consecutive months and is now at its lowest point since the end of 2008, totaling 1.28 million loans, or just 2.54 percent of today's active mortgages, according to Lender Processing Services. The company's latest report assessing the performance of mortgage assets through the end of October shows the industry's foreclosure inventory rate has plummeted 29.61 percent from last year.

Existing-home sales translate to an annual rate of 5.12 million at the October sales pace, according to the National Association of Realtors (NAR). October's sales volume was down 3.2 percent from September and marked the second consecutive month of declining transactions. NAR blames low inventory, diminished buying power from rising prices and interest rates, and a restrictive credit environment for the drop in sales.

While headlines continue to portray a housing market with rising prices and tight inventory, vacancies remain high. Government data released this week reveal a dark cloud looming behind the bright headlines. According to Trulia, more than three-fourths of the nation's largest markets are dealing with more empty homes than prior to the latest housing bubble.

Homebuyers shook off their fears and returned to the market in force following the re-opening of the government in October, according to data presented by Redfin's Research Center. The online brokerage reported a 58 percent annual increase in the number of interested buyers reaching out to its agents in the week immediately following the resolution of the partial federal government shutdown. The number of clients touring homes and those making offers also grew.

Seventy-one percent of single-family homes in the United States were built before 1990, according to a new industry report. So far this year, 60 percent of residential transactions involved homes built prior to 1990. This older housing stock comes with less competition from other buyers and lower price points, and the Federal Housing Administration's 203(k) program allows owner-occupants to roll the cost of minor and major renovations into the financing for a home purchase or a mortgage refinancing.

According to RE/MAX's National Housing Report for September, closed transactions fell 18.5 percent month-over-month, in line with the typical trend as summer passes into autumn. Year-over-year, however sales increased 10.7 percent, making September the 27th consecutive month in which sales rose on an annual basis. The company also reported a slowdown in the rate of inventory decline.

Mortgage rates are inching higher and higher, but the market does not seem to be paying any heed as it continues to show signs of improvement, according to the HousingPulse Tracking Survey released this week. It indicates the emerging slowdown in home purchases appears to be largely seasonal with a number of key indicators--distressed sales, time on market, and purchase offers--still in positive territory.

Existing-home sales slipped in September after reportedly reaching their highest level in nearly four years in August, according to the National Association of Realtors. Analysts attribute the drop to declining affordability resulting from limited inventory and rising home prices. Total existing-home sales fell to a seasonally adjusted annual rate of 5.29 million last month. August's sales were revised downward to 5.39 million.

Many in the real estate industry believe there is a listing shortage, but a close look at the numbers suggests buyers in most markets are purchasing homes in increasingly larger volumes--even if some of those sales involve off-market homes not yet listed. Buyers and their real estate brokers are getting creative in buying off-market inventory in a number of ways.