Tag Archives: National Association of Realtors

The share of all-cash sales continues to decline, and the share of homes purchased by institutional investors—who account for the largest percentage of all-cash sales—has dropped right along with it.

Despite rising shares of homebuyers age 50 and over and shrinking percentages of homeowners ages 35 to 50 and under 30, the median age of homebuyers has remained “remarkably steady” in the last decade.

According to the NAR's Pending Home Sales Index (PHSI), contract signings decreased 1.4 percent to 109.4 in August, down from 110.9 in July. However, the index is still 6.1 percent higher that 103.1 recorded in August 2014.

Additionally, the index has increased year-over-year for 11 consecutive months and is the third highest reading of 2015, behind April (111.6) and May (112.3).

Total existing-home sales rose 2.0 percent to a seasonally adjusted annual rate of 5.59 million in July from a downwardly-revised 5.48 million in June.

According to the NAR, price gains were recorded in 85 percent of metro areas in the first quarter. In addition, 34 metro areas experienced double-digit increases in the second quarter, a decline from the 51 metro areas in the first quarter.

Among the reasons for participating in a like-kind transactions, survey respondents and their clients noted deferral of capital gains taxes, equity to acquire additional properties, estate planning, portfolio diversification, and completion of a development project.

Total housing inventory increased by 3.2 percent to 2.29 million existing homes available for sale at the end of May, and is 1.8 percent higher than the 2.25 million homes for sale a year ago, the report says. Meanwhile, unsold inventory dropped down to a 5.1-month supply at the current sales pace for May, down from 5.2 months in April.

The index also broke down pending home sales by region. While the South and West saw an increase of 4 percent and 1.7 percent for March, respectively, the Northeast and Midwest saw drops, decreasing by 1.5 percent and 2.5 percent.

The thin shadow inventory compared with rising home values has caused the share of distressed home sales to drop to single digits. Since there will be fewer properties sold at deep discounts, this will cause home prices to strengthen, Yun said. "It also means that those practitioners who specialize in foreclosures or short-sales need to start thinking about a change in business models to normal home buyers and normal positive-equity home sellers," Yun wrote on the blog.