Realtors' pending home sales index shows a recovering market

WASHINGTON — Americans signed the most contracts to buy homes in July than at any other point in the last two years, further evidence of a housing recovery.

The National Association of Realtors said Wednesday that its index of sales agreements for previously occupied homes jumped 2.4% in July to 101.7. That’s higher than June’s reading of 99.3. It’s also the highest reading since April 2010, the last month that buyers could qualify for a federal home-buying tax credit.

A reading of 100 is considered healthy. The index is 12.4% higher than July 2011. It bottomed at 75.88 in June 2010 after the tax credit expired.

Contract signings typically indicate where the housing market is headed. There’s generally a one- to two-month lag between a signed contract and a completed deal.

The Realtors’ group said contract signings increased in July in all regions of the U.S. except for the West, which it said has a severe shortage of available homes for sale.

The increase is the latest sign that the home sales are finally rebounding five years after the housing bubble burst.

Last week, the National Association of Realtors said completed sales of previously occupied homes jumped 10% in July compared with the same month last year. Sales of newly built homes were up 25% in that same 12-month period.

Builder confidence rose this month to its highest level in five years. And the average rate on a 30-year fixed mortgage has been below 4% all year.

Home prices have also started to rise consistently, which could boost sales further in the months to come. The Standard & Poor’s/Case Shiller index released Tuesday showed the first year-over-year increase in home prices since September 2010.

Still, the housing market has a long way to go to reach a full recovery. Some economists forecast that sales of previously occupied homes will rise 8% this year to about 4.6 million. That’s still well below the 5.5 million annual sales pace that is considered healthy.

One trend holding back sales is that inventories of homes are low.

Overall, there were 2.4 million homes for sale in July, down 24% in the past year. It would take about 6.4 months to exhaust that supply at the current sales pace. That’s just above the six months’ inventory that typically exists in a healthy economy.

Source: http://www.freep.com/article/20120829/BUSINESS04/120829039/Realtors-pending-home-sales-index-shows-recovering-market

Local real estate market sees weak July

July home sales in the Glens Falls region dipped from last year’s levels, while monthly sales increased in the greater Capital Region and statewide.

Despite the declining monthly numbers in Warren, Washington and Saratoga counties, industry experts are confident the long-term trend is toward a robust housing market.

“Perhaps more important than the July numbers is the fact that 2012, after seven months, shows positive growth in the real estate market,” said James Ader, CEO of the Greater Capital Association of Realtors.

The largest year-to-year decrease for July was in Warren County, where the number of home sales fell 19 percent. July home sales were down 12.5 percent in Washington County.

Saratoga County saw a 1.6 percent decline in July sales.

Local Realtors have said their offices are busy during summer months because people are looking at homes. However, they said month-to-month fluctuations can be caused by delays in sale closings, so a clearer picture of the local market likely won’t emerge until the end of the year.

In Warren County, for example, year-to-year sales for May were up 36 percent, while sales increased nearly 8 percent in June from last year, and the July numbers were down from 2011.

Statewide, July home sales increased 4.7 percent.

In addition to the volume of sales, regional and state Realtor associations track median sales prices, which varied among Warren, Washington and Saratoga counties.

The statewide median sale price for July was $233,000, up from $220,000 in July 2011, which reflects a market that’s more balanced between buyers and sellers, according to Duncan MacKenzie, CEO of the New York State Association of Realtors.

The median home sale price for July increased 6 percent to $190,000 in Warren County and decreased by nearly 15 percent, to $123,500, in Washington County.

The median price increased 4.5 percent, to $265,000, in Saratoga County.

Source: http://poststar.com/news/local/local-real-estate-market-sees-weak-july/article_99eafa56-f079-11e1-bf62-001a4bcf887a.html

US Real Estate: Florida Market Recovers

Pending sales, closed sales and median prices rose, while the inventory of homes and condos for sale dropped in Florida’s housing market in July, according to the latest housing data released by Florida Realtors®.

“Florida’s real estate recovery is on solid ground,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “Since May 2011, pending sales have increased every month for both existing single-family homes and for townhome-condo properties. In July, pending sales were up more than 42 percent for existing single-family homes and 26 percent for townhouse-condo units, compared to a year ago. Home prices are on the rise in many markets, while the inventory of homes for sale is down. Florida’s housing market is growing stronger and stronger.”

Pending sales refer to contracts that are signed but not yet completed or closed; closed sales typically occur 30 to 90 days after sales contracts are written.

Statewide closed sales of existing single-family homes totaled 17,420 in July, up 9.8 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The statewide median sales price for single-family existing homes last month was $148,000, up 7.8 percent from July 2011.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in June 2012 was $190,100, up 8 percent from the previous year. In California, the statewide median sales price for single-family existing homes in June was $320,540; in Massachusetts, it was $325,000; in Maryland, it was $268,910; and in New York, it was $220,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 7,779 units sold statewide last month, up 2.8 percent from those sold in July 2011. The statewide median for townhome-condo properties was $102,000, up 10.9 percent over the previous year. NAR reported the national median existing condo price in June 2012 was $183,200.

Last month, the inventory for single-family homes stood at a 5.3-months’ supply; inventory for townhome-condo properties was at a 5.4-months’ supply, according to Florida Realtors. Industry analysts note that 5.5-months’ supply symbolizes a market balanced between buyers and sellers.

“We really need to recognize that over the past year, we have seen a market reversal, from a clear buyers’ market to a neutral market to one that is verging on a sellers’ market,” said Florida Realtors Chief Economist Dr. John Tuccillo. “This is a precursor to price growth. Our MLS (Multiple Listing Service) numbers confirm this in that both median and average prices have been trending up. Florida Realtors’ soon-to-be-launched price index, based on all sales, is showing the same sort of behavior in that price drops ended in 2009 and are now showing signs of moving up.” The interest rate for a 30-year fixed-rate mortgage averaged 3.55 percent in July 2012, significantly lower than the 4.55 percent average during the same month a year earlier, according to Freddie Mac. To see the full statewide housing activity report, go to Florida Realtors Media Center at http://media.floridarealtors.org/ and look under Latest Releases, or download the July 2012 data report PDF under Market Data at: http://media.floridarealtors.org/market-data Editor’s Note: Florida Realtors 2012 housing market data releases mark a new statewide data reporting partnership between Florida Realtors Industry Data and Analysis department and new vendor partner 10K Research and Marketing. Housing sales data from the state’s local Realtor organizations is collected and organized with the goal of providing unique, localized market reports to the local Realtor boards and associations within Florida Realtors, enabling the groups and their Realtor members to serve as the definitive voice of real estate in their respective local markets. At the same time, Florida Realtors is providing comprehensive statewide housing market statistics – but this new data series only refers to statewide data and does not include metropolitan statistical areas (MSAs).

Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 115,000 members in 63 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.

Source: http://www.livetradingnews.com/us-real-estate-florida-market-recovers-83167.htm#.UDXxX8HiZ_E

National index for homes in contract hits 2-year high

WASHINGTON -- An index that tracks the number of signed contracts to buy U.S. homes rose to its highest level in nearly two years last month, the latest sign the battered housing market is slowly improving.

The National Association of Realtors said Thursday that its index of sales agreements increased 4.1 percent last month to a reading of 101.4. That's the highest since April 2010, when buyers could qualify for a federal home-buying tax credit. A reading of 100 is considered healthy.

Contract signings typically indicate where the housing market is headed. There's a one- to two-month lag between a signed contract and a completed deal.

The figures "bode well for existing home sales over the next couple of months," Joseph LaVorgna, an economist at Deutsche Bank, said in a note to clients. "We believe housing has now entered recovery."

More signings are among recent evidence of a slight pickup in the housing market.

January and February made up the best winter for completed sales in five years, possibly because of the mild weather. Sales fell in March, but Thursday's report suggests that drop will likely be temporary, LaVorgna said.

Even so, cancellations of sales contracts are running higher than normal, as many buyers struggle to obtain mortgages. That's made the pending home sales figure a less reliable indicator.

And a backlog of foreclosures is expected to come on the market this year, weighing on home prices. Banks are stepping up foreclosures in about half the states. The increase comes after state officials settled a dispute in February with five of the biggest mortgage lenders over foreclosure abuses.

Analysts caution that the damage from the housing bust is deep and the industry is years away from fully recovering.

Potential buyers are holding off for a number of reasons. Despite the recent job gains, unemployment remains high. Many buyers can't qualify for loans. Lenders are requiring higher credit scores and larger down payments.

And some who can qualify are hesitant to buy because they worry home prices will keep falling.

Source: http://www.newsday.com/classifieds/real-estate/national-index-for-homes-in-contract-hits-2-year-high-1.3683821

Real estate agents expect housing values to increase

Livonia home sales are increasing and listed homes are spending less time on the market.

But the median sales price has declined for the first two months of this year versus last year.

For real estate agents, the statistics show that the housing market is turning around.

“There's an increased demand, the days that listed homes are on the market are falling, which means the homes are selling faster, and the numbers of sales are increasing,” said Gary Reggish, broker and owner of Remerica United Realty in Livonia.

Realcomp of Farmington released figures on Monday showing that metro Detroit's overall home sales have increased 15 percent in a six-county area, including Wayne, Oakland and Macomb counties.

Realcomp reported 104 sales in February in Livonia, up from last February's 68. This year's total is 193, up from 133 a year ago.

While that statistic shows the inventory of listed homes is moving, other statistics reveal that values have not turned around yet.

Home values showed a decline. The median sales price in Livonia was $81,500 for February, down from last year's $93,500. The median price for overall 2012 sales was $88,000, falling from $90,000 in 2011.

Homes are not sitting on the market as long as they were in 2011. A year ago, a home sat on the market for an average of 100 days for January and February; in 2012 that number for the first two months is 93.

Bidding wars

Lisa Hall, owner of Remax Dream Properties in Northville and Livonia, said agents are experiencing “extremely low inventories” for homes, except for foreclosures and short sales,

Both Reggish and Hall said bidding wars are starting to return as buyers seek homes, which also drives up the sales price, and will increase the value of homes listed for future sellers. They both indicated that they need homes to sell.

“If the home is well-taken care of, we are seeing several offers for it,” Hall said. “If a home four houses away from you sells for $65,000, it isn't out of the question that you can get $85,000 for your house.”

Reggish said the National Association of Realtors is putting pressure on the banks to lift the appraisals and get them to an accurate market value. Reggish serves on its board of directors, and on the state and local issues committee and the federal housing committee.

“It's fear,” Reggish said of the banks. “They fear that the market hasn't stabilized yet.”

Hall said the housing bubble burst, and that it will take at least 10 years to return the values back to where they once were. “You can stay, if you still have equity in the home or if you want to be moving up into a larger home, now is a good time to be moving up,” Hall said. Larger homes in foreclosure or short sales are good buys right now, Hall said.

And while homes have fallen drastically in value, the other side of that coin means that downsizing also brings a lower price beyond what existed a few years ago. Hall said she has listed a colonial in Livonia for a couple who want to downsize to a condo. “Those condos have fallen $50,000 to $75,000 in price,” Hall said.

Reggish believes Livonia is turning the corner. “The number of units is up so that shows the demand, and the homes are getting eaten up quickly,” Reggish said.

The average sales price in Livonia is about $115,000, give or take a few hundred dollars, Reggisn said. “That number speaks as a number that is stabilizing,” Reggish said.

Reggish believes homeowners are on the cusp of a market upswing and the market is ripe to buy. Home values are at their lowest levels, interest rates are at 4 percent for a 30-year mortgage and 3.75 percent for a 15-year fixed rate, Reggish said.

Reggish said his office showed a home in Livonia last weekend and 22 people showed up. One home in Northville listed for $575,000 received six offers and sold for $610,000.

Reggish said he is averaging 2 1/2 offers per house. “The buyers are out there; they just need product to buy,” Reggish said.

Livonia not as hard hit

Hall, who lists properties in Northville, Novi and Farmington Hills as well as Livonia and other western Wayne County communities, said she averages about three prospective buyers for each house she lists.

“Livonia is one of the best places to buy,” Hall said. “It wasn't hit as hard as other communities.”

At his recent State of the City, Mayor Jack Kirksey said it could take 11 to 15 years to return to 2007 property tax levels unless changes in state legislation occur, which is unlikely.

Taxable values are limited under Proposal A in Michigan to the consumer price index or 5 percent, whichever is less, unless the house is sold. Kirksey expects local governments will be limited to about 3 percent a year.

Kirksey said he was encouraged by some of the statistics about the housing market and that other factors tie into the decline in the housing value, such as foreclosures. Kirksey said he's spoken to real estate agents and is aware that homes are selling quicker.

“There's far fewer on the streets than a year ago,” Kirksey said.

Kirksey is optimistic, but knows that these sales figures are nothing more than a snapshot, and that overall sales at the year's end will need to be examined.

“It's virtually impossible for me to say whether we've bottomed out or not,” Kirksey said. “At the very least, it appears we've started to climb out of it.

“I don't know if that will continue, but I don't think we will fall any further. I am optimistic about it.”

Source: http://www.hometownlife.com/article/20120318/NEWS10/203180495

Westport Real Estate Market Looking Up for 2012

WESTPORT, Conn. – Like the weather, making real estate predictions isn't 100 percent accurate. But Westport Realtors Bunny Mostad and Deb Alderson, a mother-daughter team at Coldwell Banker, think Westport will see the biggest upswing in home sales this year since 2009.

After the recession, the number of home sales plummeted, Mostad said. In 2009, a total of 250 homes were sold, compared with the 400 homes sold three years earlier, she said. Conditions improved over the next two years, with 351 homes sold in 2010 and 344 sold in 2011. That's one reason Mostad thinks 2012 will be a good one.

"The number of units sold should continue to go up," she said. "I think we'll get back closer to what we saw about five years ago. We should definitely at least reach last year's number — and probably more."

Although the trends in numbers show people have regained some confidence in the market, Mostad said insecurity remains. Alderson agreed, saying she has found buyers are still fearful of buying and having the market drop again.

However, when the number of home sales dropped, so did the average selling price in Westport, Mostad said. In 2006, the average selling price was $1.598 million. This past year, the average home price was $1.338 million — a factor that she believes will help sales increase.

"I think prices will stay down, which is great for buyers," she said, especially first-time buyers. First-time buyers, she added, have become the National Association of Realtors' biggest market.

Continued lower prices, coupled with Westport's appeal, should prove fruitful for sales, Mostad said. The town's schools, clean beaches, proximity to New York City and "unique" amenities such as Longshore Club Park, attract buyers, she said.

On the national front, Mostad said there are signs that investors will be more active this year, which should also help drive sales. And mortgage companies, she said, have reported there will be an influx of foreclosures.

"I don't know if that's true or not, but that's what they've told us," she said. "There aren't many [foreclosures] in Westport, but there are some."

Source: http://www.thedailywestport.com/news/westport-real-estate-market-looking-2012