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 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 Report: Housing Shortage Hampers Existing Home Sales in January

The National Association of Realtors (NAR) released their January 2018 report which indicates that housing supply is still affecting existing-home sales nationwide.  For the second month in a row, existing home sales which are completed transactions that include single-family homes, townhomes, condominiums and co-ops has gone down by 3.2% in January to a seasonally adjusted annual figure of 5.38 million units.  Overall sales are down 4.8% year to year which is the largest decline since 2014.

The main factor for the decline in the sale of homes during this period continues to be the lack of supply.  Lawrence Yun, chief economist for NAR states “The utter lack of sufficient housing supply and its influence on higher home prices muted overall sales activity in much of the U.S. last month.  While the good news is that realtor in most areas are saying buyer traffic is even stronger than the beginning of last year, sales failed to follow course and far lagged last January’s pace. It’s very clear that too many markets right now are becoming less affordable and desperately need more new listings to calm the speedy price growth.”

The numbers clearly show that house prices are becoming less affordable as the median existing home price increased to $240,500.  This is a 5.8% increase from the same period last year ($227,300).  Housing inventory overall increased this month 4.1% to 1.52 million homes but is still down 9.5% from a year ago.

In the Northeast, sales were down 7.6% from a year ago and decreased by 1.4% for the month.  The project annual rate of sales is 730,000.   Median purchase price in the region was $269,100.  This is an increase of 6.8% from January 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/nar-report-housing-shortage-hampers-existing-home-sales-january/

NAR Report: Home Prices Hits All-Time High in 64 Percent of Markets; Inventory Historically Low

Home prices are now at their all-time highs in 114 out of 177 markets (64%)  measured by the  National Association of Realtors (NAR) according to their new quarterly report.   The median price for existing single-family homes the fourth quarter 2017 was $247,800.  This is an increase of 5.3 percent from fourth quarter 2016 ($235,400). The report also purports that an increase of existing home sales in the last quarter of 2017 has facilitated inventory to reach all time lows.

Existing-home sales which includes single family residences and condos/coops has  increased 4.3 percent to a seasonally adjusted annual rate of 5.62 million in the fourth quarter.  This is higher than the 5.55 million pace during the fourth quarter of 2016.  Also of note in the fourth quarter is that there were 1.48 million existing homes available for sale.   The meager amount is roughly 10.3 percent below the 1.65 million amount of homes available at the same time in 2016. The average supply during the fourth quarter was 3.5 months down from 4.2 months.  The general consensus is that 6 months of inventory is considered a healthy balance.

Lawrence Yun, chief economist for NAR states   "A majority of the country saw an upswing in buyer interest at the end of last year, which ultimately ended up putting even more strain on inventory levels and prices.  Remarkably, home prices have risen a cumulative 48 percent since 2011, yet during this same timeframe, incomes are up only 15 percent These consistent, multi-year price gains have certainly been great news for homeowners, and especially for those who were at one time in a negative equity situation; however, the shortage of new homes being built over the past decade is really burdening local markets and making homebuying less affordable."

In the Northeast home sales increased a significant 10.1 percent in the fourth quarter.  The median existing single-family house price in the area was $268,100 in the fourth quarter.  This is an increase of 4.2 percent from 2016 at the same time.

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-report-home-prices-hits-time-high-64-percent-markets-inventory-historically-low/

Existing Home Sales Pace Strongest Since 2006

According to the National Association of Realtors (NAR), existing home sales has increased for 3 consecutive months and is now on its hottest pace since December of 2006.  According to the report, the amount of total existing home sales which are defined as completed transactions including single-family homes, townhomes, condominiums and co-ops, increased 5.6% from last month to 5.81 million sales in November.  The sales pace represents an increase of 3.8% from year over year and the strongest pace of existing home sales since December 2006.

Lawrence Yun, chief economist for the NAR seems extremely optimistic from the report.  He states “Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end.  As evidenced by a subdued level of first-time buyers and increased share of cash buyers, move-up buyers with considerable down payments and those with cash made up a bulk of the sales activity last month. The odds of closing on a home are much better at the upper end of the market, where inventory conditions continue to be markedly better.”

Also of significance the median existing home price increased once again to $248,000.  It is an increase of 5.8% from the same time last year.  Supply remains a concern with the market and has affected both increases in home prices and sales.  The report indicates inventory has dropped 7.2 percent to 1.67 million existing homes available.  The amount of inventory is 9.7 percent lower than a year ago (1.85 million) and has fallen year-over-year for 30 consecutive months.   There are concerns of affordability as we enter into the new year.  There is speculation that mortgage interest rates will be increased leading to higher prices if inventory congestion remains.

In the Northeast the November existing-home sales increased 6.7 percent to an annual rate of 800,000. The median sales price in the Northeast was $273,600, which is 4.0 percent above November 2016.

If you are a homeowner or looking to purchase a home and are in need of property management than Blue Harbour Property Management can assist.  We are a full service residential NYC property management company with buildings managed in Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/existing-home-sales-pace-strongest-since-2006/

Existing Home Sales Increase In October; Supply Still Low

That National Association of Realtors (NAR) is reporting that existing home sales for the month of October 2017 is up 2% to what they believe is an adjusted annual rate of sales of 5.48 million.  This is a positive readjustment as the September predicted annual rate was 5.37 million.  The sales figures comes amid continual shortages of inventory in housing as well as interruption in sales in hurricane regions in Texas and Florida.  NAR believes that the interruptions in sales in hurricane ravaged areas should dissipate by the end of the year.

Lawrence Yun, chief economist for NAR pointed out that sales activity is continuing to grow in all four regions of the United States.  He goes on to state:

 "Job growth in most of the country continues to carry on at a robust level and is starting to slowly push up wages, which is in turn giving households added assurance that now is a good time to buy a home.  While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated."

The total amount of inventory decreased once again in October as there were only 1.8 million homes available for sale.  This is a decrease of 10.4% year over year.  As a result of lower inventory, existing home prices have gone up by 5.5% ($247,000) during the same period.

Of note for us living in the New York City region is that existing home sales in the Northeast rose 4.2% to an annual rate of 740,000.  The average price in the Northeast has increase to $272,800 which is a 6.6% increase year over year.

As the economy improves we are also seeing more individuals looking for purchase a second home for investment purposes.  If you are looking for are have an investment property and are interested in NYC property management than Blue Harbour Property Management is for you.  We are a full-service building management company servicing properties in Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/existing-home-sales-increase-october-supply-still-low/

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/

Existing Home Sales Rise in May 2017

The National Association of Realtors (NAR) is reporting an increase in existing home sales of 1.1% in May, which is a positive adjustment from April which saw a decrease in sales.  Total existing home sales is defined as completed transactions that include single-family homes, townhomes, condominiums and co-ops.  The annual rate of home sales increased to 5.62 million which is ahead of the seasonally adjusted rate from April at 5.56 million.
Lawrence Yun, NAR chief economist, says

"sales activity expanded in May as more buyers overcame the increasingly challenging market conditions prevalent in many areas. "The job market in most of the country is healthy and the recent downward trend in mortgage rates continues to keep buyer interest at a robust level," he said. "Those able to close on a home last month are probably feeling both happy and relieved. Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace and the prevalence of multiple offers in some markets are pushing prices higher."

 Inventory rose 2.1% in May to 1.96 million homes.  This is lower than the same period last year where there were 2.14 million available homes, a decrease of 8%.  As a result of decreased inventory, the median home sales price increased nationwide to $252,800.  This may be affecting overall sales and deflating the market according to Yun.  He states that "home prices keep chugging along at a pace that is not sustainable in the long run.  Current demand levels indicate sales should be stronger, but it's clear some would-be buyers are having to delay or postpone their home search because low supply is leading to worsening affordability conditions".   House price gain may also be affected by the 16 year low unemployment rate.

Of significance in the Northeast the May figures saw an increase of 6.8 percent to an annual rate of 780,000, and are now 2.6 percent above a year ago. The median price in the Northeast was $281,300, which is 4.7 percent above May 2016.  Existing home sales for properties listed between $500,000-$750,000 increased 20.6% from the same period last year.  It increased 30.3% for properties listed between $750,000-$1,000,000 and 32.1% for properties listed above $1,000,000.  The New York City region would attribute significantly to this increase.

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-rise-in-may-2017/

2017 Home Sales Expected to Increase by 3.5%

Home Sales are increasing by many measures and the National Association of Realtors has recently revealed their prediction for the 2017 year.  At the 2017 Realtors Legislative Meetings and Trades Expo, Lawrence Yun, chief economist of the National Association of Realtors presented his 2017 midyear forecast.   He was joined by Jonathan Spader, senior research associate at the Joint Center for Housing Studies at Harvard University, and Mark Calabria, chief economist and assistant to Vice President Mike Pence.
As recently reported, the first quarter for existing home sales was the best quarterly existing sales pace since 2007 (5.62 million), and forecast is for the activity to remain consistent and finish around 5.64 million which would be the best since output since 2006 (6.47 million) and 3.5 percent above 2016.
Yun states:

“The housing market has exceeded expectations ever since the election, despite depressed inventory and higher mortgage rates,” said Yun. “The combination of the stock market being at record highs, 16 million new jobs created since 2010, pent-up household formation and rising consumer confidence are giving more households the assurance and ability to purchase a home.”

Supply and affordability are holding the market back.  Yun believes that a healthy labor market should be generating more activity but prices continue to increase and moderately priced housing is off the market quickly in the last quarter.

At the expo, Calabria also addressed the housing market.  He indicated that low labor participation rate as the primary reasons why the current economic expansion is the slowest since World War II.

“A strong labor market will drive a strong housing market, but you can't have a strong housing market without a strong economic foundation,” said Calabria. “The recovery has been uneven with roughly 70 counties making up roughly half of all job growth. The White House’s proposed plans to cut corporate and individual tax cuts will help large and small businesses grow, hire and ultimately contribute to more households buying homes as more money goes into their pockets.”

Yun also addressed economic activity and said economic growth in the first quarter was “a huge disappointment” at 0.7 percent but  he anticipates an increase in consumer spending and homebuilding will be factors for the gross domestic product to finish higher.

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/2017-home-sales-expected-increase-3-5/