Tag Archives: Housing Supply

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.

According to a new consumer lifestyle survey from Relocation.com, more Americans prefer smaller homes in the suburbs. Forty-eight percent of the respondents to the nationwide survey stated that their ideal home size ranges from 1,000 to 1,999 square feet, a significant contrast to a National Association of Home Builders' report five years ago that found the average home's square footage was 2,400 feet. The survey also found that 54 percent of Americans prefer living in a suburban neighborhood.

In September, when existing home sales rose 10 percent, the National Association of Realtors (NAR) released a statement declaring the numbers meant a sales recovery had begun. One short month later, and after only two months of gains, sales have slumped 2.2 percent to a 4.43 million annual rate - which was even lower than economists had predicted. Also down was the median price of existing homes sold. Analysts agree that the recent foreclosure freezes likely disrupted a number of pending sales.

According to the Texas Quarterly Housing Report released earlier this month, real estate sales in the Lone Star State decreased 20 percent in the third quarter of 2010 compared to a year earlier, but were essentially flat year-to-date. The Texas Association of Realtors attributes the statistics to an early peak in the market due to the federal homebuyer tax credits. The median home price in Texas remained virtually unchanged at $152,000.

Inventories of homes listed for sale are dwindling across the country, in some markets, significantly, according to Altos Research. Of the 26 major markets the company tracks, only three showed increases in inventory during the month of October - Las Vegas, Phoenix, and San Diego - and Altos described their increases as ""slight."" Washington, D.C. had the biggest decline in its supply of listed homes. While, typically, decreases in inventory are evidence of a leveling off, Altos says the potential impact of the so-called shadow inventory looms large.

Residential property values fell 0.2 percent at the national level during the third quarter, according to Integrated Asset Services (IAS). In front of a seasonal slow-down in home sales, IAS says the data foreshadow ""particularly difficult times ahead"" for the housing market and for the U.S. economy. The company's report confirms that the nation's most devastated counties are showing no signs of bottoming. The robo-signing controversy is expected to slow the housing correction even further as banks hold back foreclosures.

Mortgage rates are still incredibly low by historical standards. They've been fluctuating around record lows not seen in more than a half-century for a good many months now. This week was one where that movement was upward, according to industry data released Thursday. A nationwide survey conducted by Freddie Mac found that 30-year fixed-rate mortgages rose to 4.23 percent, while 15-year rates edged up to 3.66 percent. Bankrate reports that the larger jumbo 30-year fixed rate reversed last week's decline, returning to 5.10 percent.

Sales of previously owned homes rose in September for the second straight month. The National Association of Realtors (NAR) on Monday reported a 10 percent jump. The month-to-month gain was more than analysts were expecting, and NAR says the latest numbers ""affirm a sales recovery has begun."" Some market observers, though, suggest such an assertion is premature. The median sales price of existing homes dropped 2.4 percent in September. Distressed homes accounted for 35 percent of the month's transactions.