Existing-Home Sales Drops For Fourth Straight Month, Drops Significantly in the Northeast

The National Association of Realtors (NAR) released their existing-home sales report for July and for the fourth consecutive month sales have been down.  The report indicated that existing-home sales are moving at the slowest pace in the last two year.  The Northeast had a significant drop in existing-home sales as affordability and inventory issues continue to plague the industry.

Total existing-home sales which are completed transactions that include single-family homes, townhomes, condominiums and co-ops fell 0.7% to an annual rate of 5.34 million for July.  The adjusted projected rate has declined from 5.38 million in June. Chief economist for the NAR Lawrence Yun stated  “Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million.  Too many would-be buyers are either being priced out, or are deciding to postpone their search until more homes in their price range come onto the market.”

Median prices for existing-homes increased for the 77th consecutive month.  The median price jumped to $269,600 which increased 4.5% from July 2017.  Total housing inventory decreased to .5% to 1.92 million which is unchanged from the amount available at the same time last year.

On a regional level the Northeast saw the biggest drop in existing home sales for the month.  Sales dropped 8.3% to an annual rate of 660,000.  The median price for an existing home in the Northeast was $309,700.  This is an increase of 6.8 percent from the same time last year.  The Midwest saw sales decline 1.6% to a rate of 1.25 million in July.   The median prices in the Midwest was up 2.5% from 2017 to $210,500.  In the South, sales decreased 0.4% to a rate of 2.24 million in July. The median price in the South was up 2.7% to a price of $233,400.  The West was the only region to see an increase of 4.4%  to a rate of 1.19 million in July. Median prices in the West increased 5.1% to $392,700 from July 2017.

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.

http://www.blueharbourpropertymanagement.com/existing-home-sales-drops-for-fourth-straight-month-drops-significantly-in-the-northeast/

Existing-Home Sales Gain In The Northeast As Trend Nationwide Continues to Decline

The National Association of Realtors (NAR) released their existing-home sales report for June.  The report indicates that existing-home sales decreased for the third straight month in June.  Although there were sales gains in both the Northeast and Midwest, lagging sales in the West and South resulted in overall decrease in existing-home sales by 0.6%.

Existing-home sales which is defined by the NAR as completed transactions which includes single-family homes, townhomes, condominiums and co-ops decreased to an adjusted annual rate of 5.38 million in June from revised 5.41 million in May. Sales are now down 2.2% overall year over year.

One of the major factors that has been hurting the market is the ongoing dearth supply of available homes in relation to demand.   Lawrence Yun, chief economist for NAR stated  “There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining.  The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast and in many cases, has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”

Median sales prices once again hit an all-time high June at $276,900.  This amount is an increase from June 2017 of 5.2% ($263,300).  This is the 76th straight month of an increase of existing-home sales prices.  Housing inventory increased 4.3% to 1.95 million existing homes available which is 0.5 percent above a year ago.  Yun warned that despite this increase in inventory, the demand any growth.  Yun states  “It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels.  Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up.”

Regionally, here in the Northeast we saw a moderate gain.  Existing-home sales increased 5.9% to an annual rate of 720,000.  The median price in the Northeast was $305,900.  This is up 3.3% from June 2017.  The Midwest saw gains of 0.8% while the West -2.6% and South -2.2% saw declines.

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.

http://www.blueharbourpropertymanagement.com/existing-home-sales-gain-in-the-northeast-as-trend-nationwide-continues-to-decline/

Northeast Existing-Home Sales Increase Despite Nationwide Downward Projection

The National Association of Realtors (NAR) released their report on existing-home sales for the month of May and it shows that the national trend of sales in the sector is trending downward for the second consecutive month.  All markets show a drop off with the exception of the Northeast which saw a 4.6% increase.  The numbers come as no surprise as inventory as well as increase mortgage rates are hurting the industry.

According to the report, which is considered completed transactions including single-family homes, townhomes, condominiums and co-ops, decreased 0.4% to a seasonally adjusted annual rate of 5.43 million for May. Sales are now down 3.0% from 2017.

Chief economist for the NAR Lawrence Yun stated “Closings were down in a majority of the country last month and declined on an annual basis in each major region. Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.” Despite seeing almost historic levels of decreased inventory there was an increase this month.  Housing inventory jumped in May 2.8% to 1.85 million existing homes available for sale.  It is worth noting that this is 6.1% lower year over year.

The Northeast was the only region that saw an increase in existing-home sales.  In May, sales increased 4.6% to an annual rate of 680,000.  This amount is still 11.7% below the same time in 2017.  The Midwest saw the most drastic decline in 2.3% followed by the West at 0.8% and the South at 0.4%.

Also of note, median existing-home price for all housing types hit an all time high in May at $264,800.  This is up 4.9% from May 2017 ($252,500) and the 75th straight month of increases.  Mortgage rates also increase for a 7th consecutive month to 4.59%.  The increase in both sales prices and mortgages rates are hampering first-time home buyers in entering into the market according to Yun.  “The abrupt hike in mortgage rates this spring, along with price appreciation and competition being the strongest in the entry-level part of the market, is why first-time buyers are not as active as they should be and their participation remains below its historical average.”

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.

http://www.blueharbourpropertymanagement.com/northeast-existing-home-sales-increase-despite-nationwide-downward-projection/

Existing-Home Sales Increase For Second Consecutive Month Bolstered By Strong Activity In The Northeast

The National Association of Realtors (NAR) has released their existing-home sales report for March.  The report indicates that existing-home sales grew 1.1% and was assisted by increased sales activity in the Northeast and higher total inventory.  Despite overall existing-home sales increasing, the market in still being hampered by overall affordability issues and inventory being low despite and increase in new houses hitting the market.  The figures indicate that overall demand remains high as purchasers have to pay a premium for the low level of existing homes.

Existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops increased to an adjusted annual rate of 5.60 million in March.  This is an increase from 5.54 million in February. The report indicates that sales are still 1.2% below from the same time a year ago.  The median existing home prices increased for the 73rd consecutive month to $250,400 and is 5.8% higher than a year ago ($236,600).   Total inventory of existing-home increased increased 5.7% for March to 1.67 million existing homes.  This is still significantly lower than a year ago when 1.8 million existing-homes were available.

Existing-home sales regionally increased in the Northeast and Midwest.  The Northeast saw an increase of 6.3% to a adjusted rate of 680,000.  Median prices also increased by 3.3% to 270,600.  The Midwest saw an increase of 5.7% to an annual rate of 1.29 million in March with median sales prices increasing 5.1% to $192,200.  The West region saw an increase of sales price of 7.9% to $377,100.  Inventory in the region was down 3.1%.

Lawrence Yun, chief economist for NAR said the following:

"Robust gains last month in the Northeast and Midwest – a reversal from the weather-impacted declines seen in February – helped overall sales activity rise to its strongest pace since last November at 5.72 million.  The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year ago levels because supply is woefully low and home prices keep climbing above what some would-be buyers can afford.  Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets – especially those out West."

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.

http://www.blueharbourpropertymanagement.com/existing-home-sales-increase-for-second-consecutive-month-bolstered-by-strong-activity-in-the-northeast/

Existing Home Sales For February 2018 Increases Despite A Significant Drop in the Northeast

Existing home sales grew three percent (3%) in February changing course from the previous two months which were hampered by low inventory levels and overall increases in sales prices.  The report produced by the National Association of Realtors (NAR) saw the Northeast region (-12.3%) having a huge decrease in existing home sales and that was followed by the Midwest (-2.4%).  Strong sales in the South (+6.6%) and West (11.4%) led to the growth for February altogether.   Cold and severe weather as we have seen in New York City this winter has affected existing home sales for the period for the Northeast region.

Total existing-home sales which are completed transactions that include single-family homes, townhomes, condominiums and co-ops increased to a seasonally adjusted annual rate of 5.54 million in February which is an increase from 5.38 million in January. With the numbers for this month, overall sales are ahead of last year's pace by 1.1%.  Median existing-home price increased 5.9% from the same period last year to $241,700.  It is the 72^nd straight month of year-over-year gains.  Surprisingly, total inventory rose 4.6% for February to 1.59 million existing homes.  The amount is a positive sign however is still 8.1% below the amount for the same time in February 2017 and is the 33rd consecutive month we have seen year over year inventory being lower.  Unsold inventory is at 3.4 month supply which is significantly low.  A healthy supply would be 6 months.

Chief economist for the NAR Lawrence Yun said the following:

“A big jump in existing sales in the South and West last month helped the housing market recover from a two-month sales slump.  The very healthy U.S. economy and labor market are creating a sizeable interest in buying a home in early 2018. However, even as seasonal inventory gains helped boost sales last month, home prices – especially in the West – shot up considerably. Affordability continues to be a pressing issue because new and existing housing supply is still severely subpar.  The unseasonably cold weather to start the year muted pending sales in the Northeast and Midwest in January and ultimately led to their sales retreat last month. Looking ahead, several markets in the Northeast will likely see even more temporary disruptions from the large winter storms that have occurred in March.”

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.

http://www.blueharbourpropertymanagement.com/existing-home-sales-for-february-2018-increases-despite-a-significant-drop-in-the-northeast/

NAR Study Show Millennials Lead All Generational Purchasers Relying On Real Estate Agents For Assistance

The National Association of Realtors (NAR) recently released the outcome of a study done named Home Buyer and Seller Generational Trends.   The report indicates that millennial home purchases increased over the year and constraints hampered many from leaving their parents homes.  Thirty six percent (36%) of all home purchasers were made by millennials leading all generational sects.  This was the fifth year in a row that the generation segment has led the survey.  Although most segments relied heavily on real estate agents for assistance in the purchase or sale of homes, ninety percent (90%) of all millennials were the most likely to purchase a home through a real estate agent.

The survey which evaluates the generational differences of recent home buyers and sellers found that millennial buyers prioritize living close to friends and family over a home’s location and proximity to schools.  Thirty six percent (36%) of all sales were made by millennials over the past year.  This was an increase of two percent (2%) over the previous year.  Gen X buyers ranked second 26 percent, a decrease of 2 percent (2%) and followed by younger baby boomers eighteen percent (18%) and older baby boomers at fourteen percent (14%).

NAR chief economist Lawrence Yun states market conditions are hampering millennials from further gains in homebuying.  Particularly steep competition from low inventory and increased purchase prices are affecting advancement.

"Realtors throughout the country have noticed both the notable upturn in buyer interest from young adults over the past year, as well as mounting frustration once they begin actively searching for a home to buy.  Prices keep rising for the limited number of listings on the market they can afford, which is creating stark competition, speedy price growth and the need to save more in order to buy.  These challenging market conditions have caused – and will continue to cause – many aspiring millennial buyers to continue renting unless more Gen Xers decide to sell, and entry-level home construction picks up significantly.”

Another interesting conclusion from the survey is that younger boomers were the most likely to purchase a multi-generational homes reciting that the main reason being they would like to purchase for their adult children to live at home.  They also took into consideration of their parents living with them.  The same went for Gen X purchasers as  what was found was a huge jump (over 10% increase in both categories) in the reason for the purchase was for their adult children (35%) and parents living with them (30%).

All generation segment continue to use real estate professionals in drove in order to secure a transaction.  As noted earlier,  90 percent, millennials were the most likely to purchase a home through a real estate agent. Overall, at least 84 percent in every other generation worked with an agent to close real estate transactions.

"On the seller side, Gen X and older boomers were the most likely to use an agent (91 percent), followed closely by millennials (90 percent) and younger boomers (88 percent). The near universal use of an agent to sell a home helped keep for-sale-by-owner transactions at their lowest share ever for the third straight year (8 percent)."

 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.

http://www.blueharbourpropertymanagement.com/nar-study-shows-millennials-leads-all-generational-purchasers-relying-on-real-estate-agents-for-assistance/

Home Prices Breaks Highs of 2016 As Demand Outstrips Supply

Home prices nationwide has increased by 6.2% from the second quarter of 2016 as the price of $255,600 hits peak levels.  The new report by the National Association of Realtors (NAR) indicates that as a result of low supply of housing, prices has remained strong and grown in 87 percent of measured markets.  According to the report, sale prices have increased in 154 out of 178 metropolitan areas from the same quarter last year.

Total existing-home sales which includes single family and condos, slipped 0.9 percent to a seasonally adjusted annual rate of 5.57 million in the second quarter from 5.62 million in the first quarter.  The sales figures are still 1.6 percent higher than the 5.48 million pace during the second quarter of 2016. Both of the figures aboves indicates that there is a need for newly constructed projects.  NAR chief economist stated "The glaring need for more new home construction is creating an affordability crisis that needs to be addressed by policy officials and local governments. An increasing share of would-be buyers are being priced out of the market and are unable to experience the wealth building benefits of homeownership".

Of significance in the New York City region and the Northeast, total existing-home sales in the Northeast rose 1.3 percent in the second quarter. The median existing single-family home price in the Northeast was $282,300 in the second quarter, up 3.2 percent from a year ago.  Metro area condominium and cooperative prices, showed the national median existing-condo price was $239,500 in the second quarter, up 5.4 percent from the second quarter of 2016 ($227,200). Eighty-seven percent of metro areas showed gains in their median condo price from a year ago.  A recent report by the Real Deal Magazine indicates that up to forty percent (40%) increases in Flushing, Queens alone.  This will affect NYC property management companies as rents are affected by existing home sales prices and mortgages.

http://www.blueharbourpropertymanagement.com/home-prices-breaks-highs-2016-demand-outstrips-supply/

Pending Home Sales Breaks Trend and Increases in June 2017

The National Association of Realtors (NAR) is reporting that pending home sales increased in June 2017 which is bucks a three month trend of decreased contract activity from the same time a year ago.  NAR used a pending home sales index which rose 1.5 percent in June to 110.2.  The index has increased 0.5 percent over the past 12 months and for the first time since March.  All major regions saw an increase of activity except the Midwest according to the report.

Lawrence Yun, chief economist for the NAR believes that low supply is hampering an increase in activity although the nation has 2.2 million net new jobs.  He states "Low supply is an ongoing issue holding back activity. Housing inventory declined last month and is a staggering 7.1 percent lower than a year ago.  Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria."  There were 1.96 million homes for sale in June, a 7.1 percent decline from a year ago.

Of particular interest here in the Northeast, the pending home sales index indicates a 0.7% increase in activity from the previous month and 2.9% increase year to year.  The NAR considers Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont as comprising the Northeast.

Yun expects existing-home sales to finish around 5.56 million, which is an increase of 2.6 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 5 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent according the the report.  The median sales price is currently at $263,800 an increase of 6.5% year over year.

The Pending Home Sales Index is an idex devised by the National Association of Realtors for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed.  The index is based on a national sample, typically representing about 20 percent of transactions for existing-home sales.

 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.

http://www.blueharbourpropertymanagement.com/pending-home-sales-breaks-trend-increases-june/

Foreign U.S. Home Sales Increases By 49 Percent and Breaks Record

Foreign purchasers and immigrants purchased $153 billion worth of real estate in 2016.  This is up 49% from the $103.9 billion for the previous year.  The year is measured from the period between April of 2016 to May 2017.  According to the National Association of Realtors (NAR) report,  2017 Profile of International Activity in U.S. Residential Real Estate. 284,455 U.S. properties were purchased by foreign buyers which is an increase of 32 percent from 2016.

Chinese buyers remain the biggest purchaser of U.S. real estate with $31.7 billion worth.  More than a third of Chinese buyers purchased residential property in California.  It is believed it is most likely because of its proximity to and cultural affinity with Asia. The other destinations that were preferred are Texas, Florida, Illinois, New Jersey, Massachusetts, New York, Indiana, and Virginia.  

Canadian buyers are the second biggest foreign purchasers of U.S. real estate with $19.0 billon worth of transactions.   Most Canadian buyers purchased residential property in Florida, Arizona, California, Texas, Georgia, Minnesota, and Nevada. Canadian buyers typically purchase properties for use as vacation homes, so they tend to locate in states with warm climates and resort areas.

NAR's chief economist states

“Inventory shortages continue to drive up U.S. home values, but prices in five countries, including Canada, experienced even quicker appreciation. Some of the acceleration in foreign purchases over the past year appears to come from the combination of more affordable property choices in the U.S. and foreigners deciding to buy now knowing that any further weakening of their local currency against the dollar will make buying more expensive in the future.”

According to the report, foreign purchasers were 9% higher than the median price in 2016 ($302,290). Also of note is that non-resident foreign buyers made an all-cash purchase (72 percent), while resident foreign buyers paid all-cash (35 percent)

 

Yun also believes the expanding U.S. and global economies will keep foreign demand high for American properties. The main challenges will be political policies of the new administration regarding immigration and international trade.

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.

http://www.blueharbourpropertymanagement.com/foreign-u-s-home-sales-increases-49-percent-breaks-record/

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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Pending Homes Sales Adjusts to Second Highest Level in A Decade

Pending home sales increased in February and reached its highest level in over a year and second-highest level in over a decade according to NAR (National Association of Realtors). All major regions saw a notable hike in contract activity last month.  According to an index used by NAR called the Pending Home Sales Index, there was an increase of 3.4% in February to 102.1 in the Northeast, 11.4% to 110.8 in the Midwest, 4.3% to 127.8 in the South and 3.1% to 97.5 in the West.   This is the second highest level it has hit since May of 2006.

T

he Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.  According the NAR, the index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

To review the Index you can click here.

NAR chief economist Lawrence Yun stated that  February's convincing bump in pending sales is proof that demand is rising with spring on the doorstep. "Buyers came back in force last month as a modest, seasonal uptick in listings were enough to fuel an increase in contract signings throughout the country.  The stock market's continued rise and steady hiring in most markets is spurring significant interest in buying, as well as the expectation from some households that delaying their home search may mean paying higher interest rates later this year."

Existing-home sales nationwide are expected be around 5.57 million this year which would be  an increase of 2.3 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 4 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent.

http://www.blueharbourpropertymanagement.com/pending-home-sales-second-highest-level-in-a-decade/

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