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/

Home Prices in Metropolitan Regions Jump 5.7% As Inventory Idles Near All-Time Low Levels

The National Association of Realtors (NAR) released their quarterly report on Metropolitan Median Prices and Affordability.  The report which you can read here shows that national median home prices for single family homes increased 5.7% from $245,500 from $232,200 from the same quarter in 2017.  The report which the NAR releases every quarter shows price data for single-family residences for approximately 175 Metropolitan Statistical Areas (MSAs).
The lack of inventory of housing fueled faster appreciation according to NAR.  Lawrence Yun, chief economist for NAR states:

“The worsening inventory crunch through the first three months of the year inflicted even more upward pressure on home prices in a majority of markets. Following the same trend over the last couple of years, a strengthening job market and income gains are not being met by meaningful sales gains because of unrelenting supply and affordability headwinds.  Realtors in areas with strong job markets report that consumer frustration is rising. Home shoppers are increasingly struggling to find an affordable property to buy, and the prevalence of multiple bids is pushing prices further out of reach.”

Overall, home prices last quarter increased in 91 percent of the markets that NAR takes statistics from.  They note that 162 out of 178 metropolitan statistical areas were showing sales price gains for the quarter in comparison the the same quarter in 2017.  Thirty percent of all metro area (53) saw double-digit increases which was up from 15 percent in the fourth quarter of 2017.

Another factor that is affecting affordability is rising mortgage rates.  The national family median income rose to $74,779 in the first quarter yet mortgage rates are wiping out any increase to an individuals' income.  Yun added “Prospective buyers in many markets are realizing that buying a home is becoming more expensive in 2018.  Rapid price gains and the quick hike in mortgage rates are essentially eliminating any meaningful gains buyers may be seeing from the combination of improving wage growth and larger paychecks following this year’s tax cuts. It’s simple: homebuilders need to start constructing more single-family homes and condominiums to overcome the rampant supply shortages that are hampering affordability.”

Of note here in the Northeast the report shows that existing-home sales decreased 8.5 percent in the first quarter.  The median existing single-family home price in the Northeast was $267,400 in the first quarter which is an increase of 4.6 percent from the same quarter in 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/home-prices-in-metropolitan-regions-jump-5-7-as-inventory-idles-near-all-time-low-levels/

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 Down in December But Overall Year Was Best Since 2006

Existing home sales decreased by 3.6% in December for a seasonally adjusted rated of 5.57 million.  The amount is an 1.1% in 2017.  This amount has eclipsed the 2016 figure (5.45 million) and is  the highest since amount of existing-home sales since 2006 (6.48 million).  Total existing home sales are completed transactions that include single-family homes, townhomes, condominiums and co-ops.  The report was presented by the National Association for Realtors (NAR) also indicated that sales price and the amount of inventory affected sales in December.

Lawrence Yun chief economist for the NAR states "the housing market performed remarkably well for the U.S. economy in 2017, with substantial wealth gains for homeowners and historically low distressed property sales. Existing sales concluded the year on a softer note, but they were guided higher these last 12 months by a multi-year streak of exceptional job growth, which ignited buyer demand,” said Yun. “At the same time, market conditions were far from perfect. New listings struggled to keep up with what was sold very quickly, and buying became less affordable in a large swath of the country. These two factors ultimately muted what should have been a stronger sales pace.  Closings scaled back in most areas last month for this same reason. Affordability pressures persisted, and the pool of interested buyers at the end of the year significantly outweighed what was available for sale.”

The median sales price increased in December to $246,800 which is an increase of 5% from the same time last year ($233,300).  With respect to inventory, we saw a drop of  11.4% to 1.48 million existing homes available for sale.   Inventory is now 10.3 percent lower year over year (1.65 million) and has decreased for 31 consecutive months

On the mortgage front, interest rates have increased to 3.95 percent on fixed rates this month which is an increase from November and third straight month in increases to interest rates.  Mr. Yun believes that increases in interest rates along with high sales prices will make it harder to for first time home buyers to enter the market in 2018.  "Rising wages and the expanding economy should lay the foundation for 2018 being the turning point towards an uptick in sales to first-time buyers. However, if inventory conditions fail to improve, higher mortgage rates and prices will further eat into affordability and prevent many renters from becoming homeowners" said Yun.

Of note in the Northeast, existing-home sales decreased 7.5% to an annual rate of 740,000, and are now 2.6% below 2016 figures. The median price in the Northeast was $261,400.  That is a 3.0% from last year as well.

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-december-overall-year-best-since-2006/

September 2017 Existing Home Sales Unexpectedly Rebounds

The National Association of Realtors (NAR) is reporting that total existing-home sales which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 0.7 percent to a seasonally adjusted annual rate of 5.39 million in September from 5.35 million in August. The report which you can read here, comes amid three consecutive months of monthly existing home declines which were affected by hurricanes hitting the Southern United States and shortages in housing.

Lawrence Yun, chief economist for the NAR states “sales activity likely would have been somewhat stronger if not for the fact that parts of Texas and South Florida – hit by Hurricanes Harvey and Irma – saw temporary, but notable declines.”  Texas and Florida make up 18 percent of all existing home sales nationwide.

Housing inventory rose 1.6 percent to 1.90 million existing homes available for sale.  This is 6.4 percent lower than a year ago (2.03 million) and has fallen year-over-year for 28 consecutive months. It should be also be noted that unsold inventory at a meager 4.2-month supply at the current sales pace, which is down from 4.5 months a year ago.  The shortage of existing homes affected the median sales prices of homes.  The median existing-home price in September was $245,100 nationwide which is an increase of 4.2 percent from September 2016 ($235,200).

Existing condominium and co-op sales decreased 1.6 percentage points to an adjusted figure of 600,000 units annually, 1.6 percent below figures of a year ago. The median existing condo price in September was $231,300 — up 4.1 percentage points from 2016.
Here in the Northeast, September existing-sales are at a projected annual rate of 720,000.  This amount is the same as August and is below last year's figures by 1.4 percent.  The median price of an existing home in the Northeast was $274,100.  That amount is 4.8 percent above September 2016. 

New York State Association of Realtors has indicated that there were 98,176 closed sales through the first nine months of 2017, a 1.7-percent increase from 2016 and 38,445 closed sales in the 2017 third quarter which is a decrease of 3.1 percent from the 2016 third quarter total of 39,693.   Statewide median sales price through the first three quarters of the year was $250,000, a 5.5-percent increase from the same period in 2016.

 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/september-existing-home-sales-unexpectedly-rebounds/

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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