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/

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/

Manhattan Rents Decrease The Most Since 2011 As Concessions Deemed Not Enough

A new report by Bloomberg indicates that Manhattan median rents has been reduced 3.6% for the same time last year as the glut of inventory in Manhattan as well as more affordable units in neighboring boroughs have affected prices.  Median rents came in at $3,141 per unit according to Bloomberg and the decline is the biggest since October of 2011.  Concessions on newly signed leases increased to 49% of all signed for the period.  Concessions that many NYC property management companies and landlords have been using are free months of rent, free gym memberships, gift cards as well as landlord's picking up broker's fees.

The trend in residential units in Manhattan is beginning to catch up to the trend that has already been seen in the commercial sector.  Commercial landlords have increasingly within the last two years given increasing perks and have negotiated shorter lengths of leases in order to lure tenants.  Retail has been the most hit with rents being reduced by as much as 30%.

The vast amount of inventory seems to be the main factor in decreasing rents.  A report compiled by Citi Habitats shows that around 5,630 newly built apartments will be introduced to the market this year.  This is above the amount that entered in 2017 which was calculated to be 4,270 units.

Some also believe that neighboring boroughs and cities have affected Manhattan rents as well. Gary Malin, president of Citi Habitats says to Bloomberg “The dynamic has shifted,” with Brooklyn, Queens and the New Jersey waterfront becoming viable options to many renters.  Tenants are looking for value, and they’re open to suggestions.”

Although rents have decreased in Manhattan, it certainly not affected sales prices.  A new report by City Realty indicates that prices are still rising.  According to the report, the average sales price in Manhattan increased 15% to $2.3 million for December 2017.  Sales volume also increased roughly 8% from the month previous month as there was 884 transactions recorded in December.

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/manhattan-rents-decrease-since-2011-concessions-deemed-not-enough/