Home Builder Confidence Remains Strong But Drops Slightly From Previous Months

The National Association of Home Builders (NAHB) and Wells Fargo released their March report on home builder confidence and it shows that home builder sentiment remains strong although has slipped from the record highs of previous months.   The Housing Market Index (HMI) indicates that there has been a decrease of one point to 70 in March.  This is a slight reduction from the readings of February which was revised to 71.  December saw the highest post-recession readings of a 74.

Based on a monthly survey NAHB conducts, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair,” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average,” or “low to very low.” Any number over 50 indicates that more surveyed builders viewed conditions as good than poor.

With respect to current sales, the HMI survey showed that confidence held steady at a 77.  Sales for the next six months expectations dropped 2 points to a 78.  In the Northeast, builder confidence increased 1 point to a 56.  Previous months saw builder confidence drop 5 points in February so positive sentiment is seeing an upswing in our area.

NAHB Chairman Randy Noel  said “Builders’ optimism continues to be fueled by growing consumer demand for housing and confidence in the market. However, builders are reporting challenges in finding buildable lots, which could limit their ability to meet this demand.

Challenges aside, there is optimism of continued growth in home building for the future.  Robert Dietz, Chief Economist for the NAHB believes so in stating "A strong labor market, rising incomes and a growing economy are boosting demand for homeownership even as interest rates rise. With these economic fundamentals in place, the single-family sector should continue to make gains at a gradual pace in the months ahead.”

 Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

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Existing Home Sales Increase to Highest Level Since 2007

Existing-home sales in March increased to the highest level since 2007 according to a report by the National Association of Realtors. The report saw sever shortages in overall supply and homes coming off the market faster than in months prior. Total existing home sales, completed transactions including single-family homes, townhomes, condominiums and co-ops, increased 4.4% to a seasonally adjusted rate of 5.71 million in March, according to the report by NAR.  It is an increase of 5.9% above last year’s pace, marking the strongest month of sales since February 2007.

Lawrence Yun who is the NAR chief economist, says existing sales had a serious comeback in March and the gains were led in the Northeast and Midwest.

"The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month," he said. "Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings in March for sales to muster a strong gain. Sales will go up as long as inventory does."

Of importance in the New York City region, March existing-home sales in the Northeast surged 10.1 percent to an annual rate of 760,000, and are now 4.1 percent above a year ago. The median price in the Northeast was $260,800, which is 2.8 percent above March 2016.

The median existing-home price continued to rise, hitting $236,400 in March. This is up 6.8% from last year’s $221,400 and marks the 61st consecutive month of annual home-price increases.  One of the major factors in the rising home prices has been competition as we have seen properties stayed on the market for 34 days in March.  The is down significantly from 45 days in February and 47 days last year.

Short sales stayed on the market an average of 90 days in March as foreclosures usually sold in about 52 days. Non-distressed homes took the shortest time to sell at 32 days, the shortest time since NAR began tracking in May 2011. In fact, 48% of homes sold in March were on the market for less than a month. First-time buyers were 32 percent of sales in March, which is unchanged from February and up from 30 percent a year ago.

http://www.blueharbourpropertymanagement.com/existing-home-sales-increase-highest-level-since-2007/

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