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/

Builder Confidence Remains High for January 2017

As we are heading into a new administration, builder confidence remained optimistic for the start of 2017 as there is an increased vigor that President-elect Trump's team will bring in a new era of a pro housing business environment.  Builder confidence decreased by just 2 point to 67, down from December's revised 69, according to the National Association of Home Builders  and Wells Fargo Housing Market Index.   The level of confidence in December was the highest level since July of 2005.   In the regional level, the Northeast saw a decease in confidence of 5 points from a 57 in December to January's level of 52.  The January number still is significantly higher than it has been in recent times as well.

The HMI is a weighted average of separate diffusion indices for these three key single-family series. The first two series are rated on a scale of Good, Fair and Poor and the last is rated on a scale of High/Very High, Average, and Low/Very Low. A diffusion index is calculated for each series by applying the formula “(Good-Poor+100)/2” to the present and future sales series and “(High/Very High – Low/Very Low + 100)/2” to the traffic series. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

Based on this calculation, the HMI can range between 0 and 100.

“Builders begin the year optimistic that a new Congress and administration will help create a better business climate for small businesses, particularly as it relates to streamlining and reforming the regulatory process,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas.

Chief Economist for the NAHB Robert Dietz also sees a 10% increase in single family construction in 2017 which will add to the gains of 2016.

With the HMI index high, we can expect more activity in NYC property management.  If you are in need of property management in NYC, contact Blue Harbour Property Management.

http://www.blueharbourpropertymanagement.com/builder-confidence-remains-high-january-2017/

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