Youngstown-Warren-Boardman: Tops Least Expensive U.S. Markets
Home prices showed strong growth in the final quarter of 2015, despite a slowing sales, according to a new quarterly report released by the National Association of REALTORS® (NAR) this week. Source: National Association of REALTORS®
The five most expensive housing metro areas in the fourth quarter of 2015 were:
San Jose, Calif.: $940,000 (the median existing single-family home price)
First time buyers likely to face headwinds of affordability
as mortgage rates creep higher and supply remains limited.
Pending home sales in November slightly declined for the third time in four months as buyers continue to battle both rising home prices and limited homes available for sale, according to the National Association of Realtors®. Modest gains in the Midwest and South were offset by larger declines in the Northeast and West.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 0.9 percent to 106.9 in November from an upwardly revised 107.9 in October but is still 2.7 percent above November 2014 (104.1). Although the index has increased year-over-year for 15 consecutive months, last month’s annual gain was the smallest since October 2014 (2.6 percent).
Lawrence Yun, NAR chief economist, says November’s dip in contract activity continues the modestly slowing trend seen ever since pending sales peaked to an over nine year high back in May.
“Home prices rising too sharply in several markets, mixed signs of an economy losing momentum and waning supply levels have acted as headwinds in recent months despite low mortgage rates and solid job gains,” he said. “While feedback from Realtors® continues to suggest healthy levels of buyer interest, available listings that are move-in ready and in affordable price ranges remain hard to come by for many would-be buyers.”
According to Yun, with existing housing inventory already below year ago levels and new home construction still deficient, it’s likely supply constraints and faster price appreciation will reappear once the spring buying season begins.
“Especially with mortgage rates likely on the rise, affordability issues could creep up enough to temper sales growth – especially to first-time buyers in higher priced markets,” adds Yun.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 3.4 percent to a seasonally adjusted annual rate of 5.36 million in October from 5.55 million in September.
😎 Despite last month’s decline, sales are still 3.9 percent above a year ago (5.16 million).Continue reading →
Following the hottest summer selling season in years, October home sales cooled down 7.7% below sales in September, and 0.8% lower than October 2014. October and January were the only two months of the year that saw lower home sales than the same month last year.
“We’ve seen a very strong demand for homes in 2015 despite the continuing challenges of low inventory. Demand is mostly due to the slowly improving economy and a more favorable employment situation. October’s moderation of price increases is typical this time of year and actually offers home buyers a little better affordability.” Dave Liniger, RE/MAX CEO, Chairman of the Board and Co-Founder
October 2015 Newsletter Housing Trends eNewsletter
National housing indicators; National economic indicators; Regional market updates; sales statistics; and more.
Welcome to the October 2015 Housing Trends eNewsletter. This eNewsletter is specially designed to give you all crunch and crackle of both national and local housing information that you’ll find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.
The Housing Trends eNewsletter has all the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.
Headwinds (supply shortages, flat wages, and tight credit) impede full sales potential.
After three consecutive months of gains, pending home sales slowed in June missing expectations for a 0.5% increase, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, declined 1.1 percent to 102.7 in June from 103.8 in May, and is 7.3 percent below June 2013 (110.8). Despite June’s decrease, the index remains above 100 – considered an average level of contract activity – for the second consecutive month after failing to reach the mark since November 2013 (100.7).
According to the National Association of Realtors®, the Pending Home Sales Index, a forward-looking indicator based on contract signings, dipped 0.8 percent to 93.9 from a downwardly revised 94.7 in January, and is 10.5 percent below February 2013 when it was 104.9. The February reading was the lowest since October 2011, when it was 92.2.
Home prices continued to rise in most of the country due to limited inventory conditions, but those same rising prices coupled with severe winter weather caused existing-home sales to slip in February–again, so says the National Association of Realtors®.
After Two Straight Months of Declines New-Home Sales Advance in January
Weather blamed for poor housing performance–Oh wait!
Sales of newly built, single-family homes rose 9.6 percent to a seasonally adjusted annual rate of 468,000 units in January from an upwardly revised pace of 427,000 units in the previous month, according to data released today by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the strongest sales pace since July of 2008.