Tag Archives: Housing Supply

Fannie Mae's latest national housing survey finds that Americans are more confident about the stability of home prices than they were at the beginning of 2010, even though they lack confidence in the strength of the economy. Seventy-eight percent of respondents to the GSE's fourth-quarter survey said they believe housing prices will hold steady or increase over the next twelve months. However, almost two-thirds said they believe the economy is on the wrong track. The number of delinquent borrowers who say they have seriously considered defaulting declined to 19 percent.

For the first time in six months, home sales in the 54 U.S. markets surveyed by RE/MAX are greater than one year ago, the company said in its newly released January housing report. RE/MAX says the year-over-year sales difference has improved for three consecutive months now with several cities experiencing double digit growth to lead the trend. Home prices, however, were 4.6 percent lower than in January 2010.

They say ""it's all in the numbers,"" but what if the numbers don't match up, in fact don't even come close? The real estate data and analytics firm CoreLogic has released a market report in which the company claims 2010 home sales estimates from the National Association of Realtors (NAR) are overstated by 15 to 20 percent, or about 1.5 million homes. NAR says it's Corelogic's numbers that are off. Both parties agree that the issue lies in the methodology, compounded by the volatility and turbulence of today's market.

The National Association of Realtors (NAR) reported that home sales increased in 49 states during the fourth quarter of 2010, with 78 markets experiencing gains from the fourth quarter of 2009. The national average of home sales rose 15.4 percent to an annual rate of 4.80 million in Q4 from 4.16 million in the third quarter. Distressed homes accounted for 34 percent of sales last quarter. Even with foreclosures continuing to enter the inventory pipeline, NAR says they've been selling well and housing supplies have trended down.

Homeownership levels posted Monday by the U.S. Department of Commerce are, at 66.5 percent, the lowest they have been since the fourth quarter of 1998. By contrast the rental vacancy rate decreased 0.9 percent from the rate in the third quarter of 2010, and is the lowest it has been since the first quarter of 2003. Analysts say the nation's homeownership rate is likely to fall further, as evidenced by a combination of weak housing demand and high supply.

The number of price-reduced homes on the market in December 2010 fell by 7.7 percent from the previous month, according to a report surveying 26 major U.S. markets issued by ZipRealty. Despite the month-to-month decline, the company says the number of homes with a reduced asking price remained high compared to a year earlier, rising 23.4 percent from December 2009. The report also found that in the markets surveyed, the median list price in December was down 3.9 percent from November.

According to RealEstate Business Intelligence (RBI), a source of real estate data, analytics, and business intelligence for real estate professionals in the Mid-Atlantic, the Baltimore housing market continued to look bleak in December. Based on figures from RBI's newly launched pending home sales index, the average price of homes sold in the Baltimore area dropped 6.6 percent, from $283,269 at the end of 2009 to $264,500 by the end of 2010. At the same time, active listing inventory grew by 10 percent.

The first week of January typically marks the seasonal low point for home sales, new listings, and closings, as weather and holiday celebrations keep buyers and sellers from the market, and this year is no different, according to Altos Research. The company says both home prices and inventory are down for the lion's share of the nation's regional markets. The analysts at Altos expect home prices to hit a new trough in 2011, falling another 5 to 10 percent over the next 12 months.

A new report from ZipRealty shows the supply of homes for sale in November declined by an average of 3.8 percent in 26 major metropolitan areas that the company researched. The largest inventory declines were seen in Austin, Texas, where the for-sale supply fell 9.5 percent, and Boston, Massachusetts, down 10 percent. The company says declines could be indicative of sellers deciding to take their homes off the market, and could also be a result of foreclosure moratoriums.

Americans continue to grapple with uncertainty about the housing market, with 58 percent of U.S. adults expecting recovery to be at least another two years away. Rick Sharga of RealtyTrac and Pete Flint of Trulia are of the same mind as consumers. They peg the housing recovery to begin taking shape between 2013 and 2014. The robo-signing debacle has left most consumers mired in distrust of banks and the government. The industry experts say its effect on REO sales will be minimal, but the impact on consumer confidence could be especially damaging.