RISMEDIA, January 21, 2011—Existing-home sales rose sharply in December 2010, when sales increased for the fifth time in the past six months, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 12.3% to a seasonally adjusted annual rate of 5.28 million in December from an upwardly revised 4.70 million in November, but remain 2.9% below the 5.44 million pace in December 2009.
Lawrence Yun, NAR chief economist, said sales are on an uptrend. “December was a good finish to 2010, when sales fluctuate more than normal. The pattern over the past six months is clearly showing a recovery,” he said. “The December pace is near the volume we’re expecting for 2011, so the market is getting much closer to an adequate, sustainable level. The recovery will likely continue as job growth gains momentum and rising rents encourage more renters into ownership while exceptional affordability conditions remain.”
The national median existing-home price for all housing types was $168,800 in December, which is 1.0% below December 2009. Distressed homes rose to a 36% market share in December from 33% in November, and 32% in December 2009.
“The modest rise in distressed sales, which typically are discounted 10 to 15 percent relative to traditional homes, dampened the median price in December, but the flat price trend continues,” Yun explained.
Total housing inventory at the end of December fell 4.2% to 3.56 million existing homes available for sale, which represents an 8.1-month supply at the current sales pace, down from a 9.5-month supply in November.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said buyers are responding to very good affordability conditions despite tight mortgage credit. “Historically low mortgage interest rates, stable home prices, and pent-up demand are drawing home buyers into the market,” Phipps said. “Recent home buyers have been successful with very low default rates, given the outstanding performance for loans originated in 2009 and 2010.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.71% in December from 4.30% in November; the rate was 4.93% in December 2009.
A parallel NAR practitioner survey shows first-time buyers purchased 33% of homes in December, up from 32% in November, but are below a 43% share in December 2009.
Investors accounted for 20% of transactions in December, up from 19% in November and 15% in December 2009; the balance of sales were to repeat buyers. All-cash sales were at 29% in December, compared with 31% in November, but up from 22% a year ago. “All-cash sales have been consistently high at about 30 percent of the market over the past six months,” Yun said.
Single-family home sales jumped 11.8% to a seasonally adjusted annual rate of 4.64 million in December from 4.15 million in November, but are 2.5% below the 4.76 million level in December 2009. The median existing single-family home price was $169,300 in December, down 0.2% from a year ago.
Existing condominium and co-op sales surged 16.4% to a seasonally adjusted annual rate of 640,000 in December from 550,000 in November, but remain 5.2% below the 675,000-unit pace one year ago. The median existing condo price was $165,000 in December, which is 7.4% below December 2009.
Regionally, existing-home sales in the Northeast jumped 13.0% to an annual pace of 870,000 in December, but are 5.4% below December 2009. The median price in the Northeast was $237,300, which is 1.4% below a year ago.
Existing-home sales in the Midwest rose 11.0% in December to a level of 1.11 million, but are 4.3% below a year ago. The median price in the Midwest was $139,700, up 3.3% from December 2009.
In the South, existing-home sales increased 10.1% to an annual pace of 1.97 million in December, but are 2.5% below December 2009. The median price in the South was $148,400, unchanged from a year ago.
Existing-home sales in the West surged 16.7% to an annual level of 1.33 million in December, but remain 1.5% below December 2009. The median price in the West was $204,000, down 5.6% from a year ago.
For more information, visit http://www.realtor.org/.
Sunday, January 23, 2011
Friday, December 31, 2010
C.A.R. reports California home sales rise in November; share of short sales increasing
LOS ANGELES (Dec. 22) – California home sales rose in November, but were down from the previous year, according to data from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The statewide median price declined from both the previous month and previous year.
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 490,950 in November, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. November’s sales were up 9.2 percent from October’s revised pace of 449,480 but were down 8.6 percent from the revised 536,940 sales pace recorded in November 2009. The statewide sales figure represents what would be the total number of homes sold during 2010 if sales maintained the November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
“We are encouraged by November’s sales increase, but realize a more sustained recovery is being hampered by the distressed market,” said C.A.R. President Beth L. Peerce. “While we are experiencing a greater share of short sales, these transactions are notoriously difficult to navigate with no guarantee of closure. A recent C.A.R. survey indicated that it takes many lenders 90 days or more simply to communicate whether a short sale has been accepted, causing tremendous frustration for buyers and sellers,” she said. “Moreover, the survey found that more than two out of five short sale transactions never close. The housing market can’t fully recover until lenders streamline and improve the short sales process, which would help expedite transactions,” said Peerce.
The median price of an existing, single-family detached home sold in California fell below the $300,000 mark for the first time since February. The November 2010 median price was $296,820, down 2.4 percent from October’s $304,220 median price and down 2.5 percent from the revised $304,550 median price recorded for the same period a year ago. It was the first year-over-year price decline in a year.
“Unsold inventory declined slightly in November, as the number of active listings fell from October, particularly for homes priced above $500,000,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “The decline in listings was reflective of seasonal factors and the foreclosure moratorium that took place in October,” she said.
Here are other highlights of C.A.R.’s resale housing report for November 2010:
In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 106 of the 328 cities and communities reporting showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)
Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices for November may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. online at
http://www.car.org/marketdata/historicalprices/2010medianprices/nov2010/.
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 490,950 in November, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. November’s sales were up 9.2 percent from October’s revised pace of 449,480 but were down 8.6 percent from the revised 536,940 sales pace recorded in November 2009. The statewide sales figure represents what would be the total number of homes sold during 2010 if sales maintained the November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
“We are encouraged by November’s sales increase, but realize a more sustained recovery is being hampered by the distressed market,” said C.A.R. President Beth L. Peerce. “While we are experiencing a greater share of short sales, these transactions are notoriously difficult to navigate with no guarantee of closure. A recent C.A.R. survey indicated that it takes many lenders 90 days or more simply to communicate whether a short sale has been accepted, causing tremendous frustration for buyers and sellers,” she said. “Moreover, the survey found that more than two out of five short sale transactions never close. The housing market can’t fully recover until lenders streamline and improve the short sales process, which would help expedite transactions,” said Peerce.
The median price of an existing, single-family detached home sold in California fell below the $300,000 mark for the first time since February. The November 2010 median price was $296,820, down 2.4 percent from October’s $304,220 median price and down 2.5 percent from the revised $304,550 median price recorded for the same period a year ago. It was the first year-over-year price decline in a year.
“Unsold inventory declined slightly in November, as the number of active listings fell from October, particularly for homes priced above $500,000,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “The decline in listings was reflective of seasonal factors and the foreclosure moratorium that took place in October,” she said.
Here are other highlights of C.A.R.’s resale housing report for November 2010:
- C.A.R.’s Unsold Inventory Index for existing, single-family detached homes was 6.2 months in November, down from 6.5 months in October. The index was 4.5 months in November 2009. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
- Thirty-year fixed-mortgage interest rates averaged 4.3 percent during November 2010, compared with 4.88 percent in November 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.25 percent in November 2010, compared with 4.41 percent in November 2009.
- The median number of days it took to sell a single-family home was 54.7 days in November 2010, compared with 33.1 days for the same period a year ago.
In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 106 of the 328 cities and communities reporting showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)
Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices for November may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. online at
http://www.car.org/marketdata/historicalprices/2010medianprices/nov2010/.
- Statewide, the 10 cities with the highest median home prices in California during November 2010 were: Saratoga, $1,235,000; Newport Beach, $1,110,000; Laguna Beach, $1,107,500; La Jolla, $1,037,500; Los Gatos, $850,000; Cupertino, $850,000; Santa Monica, $849,000; Santa Barbara, $839,000; Danville, $720,000; San Francisco, $680,000; and Arcadia, $670,000.
- Statewide, the cities with the greatest median home price increases in November 2010 compared with the same period a year ago were: San Juan Capistrano, 57 percent; San Bernardino, 24.3 percent; Thousand Oaks, 22.6 percent; Encinitas, 21 percent; Lake Forest, 16.8 percent; San Marcos, 14 percent; Montclair, 12.9 percent; Newport Beach, 12.6 percent; Compton, 12.5 percent; and Yucca Valley, 12.4 percent.
- Video of C.A.R. Chief Economist Leslie Appleton-Young discussing highlights of the November sales and price report.
- Unsold Inventory by price point.
- Data table comparing current prices with trough prices in areas throughout the state.
Saturday, December 18, 2010
Home prices decline for three months in a row
October home prices fell for the third straight month, according to an index maintained by mortgage data aggregator CoreLogic.
The 3.93 percent year-over-year decline in the CoreLogic Home Price Index was significantly greater than the 2.43 percent slip registered in September, and left home prices down 30.2 percent from their April 2006 peak.
Excluding distressed sales, national home prices were down 1.5 percent in October 2010 compared to a year ago, with a 20.9 percent decline from peak.
Continued home-price weakness reflects the lingering impact of the artificial support provided by homebuyer tax credits in the spring, and their subsequent withdrawal, said CoreLogic Chief Economist Mark Fleming. Stubbornly high unemployment and seasonal factors are also coming into play, he said.
Combine those factors with high shadow and visible inventories, and "the prospect for a housing recovery in early 2011 is fading," Fleming said.
The five states with the greatest year-over-year depreciation in October were Idaho (-15.06 percent), Alabama (-9.3 percent), Oregon (-8.5 percent), Arizona (-8.25 percent) and Florida (-8 percent).
The five states with the highest appreciation were Wyoming (5.67 percent), North Dakota (5.35 percent), Hawaii (2.97 percent), New York (2.93 percent) and Vermont (2.84 percent).
The CoreLogic index covers 572 Core Based Statistical Areas (CBSAs) where 85 percent of total U.S. population lives. The index showed prices falling in six out of 10 the nation's largest CBSAs -- five if distressed property sales were excluded.
The 3.93 percent year-over-year decline in the CoreLogic Home Price Index was significantly greater than the 2.43 percent slip registered in September, and left home prices down 30.2 percent from their April 2006 peak.
Excluding distressed sales, national home prices were down 1.5 percent in October 2010 compared to a year ago, with a 20.9 percent decline from peak.
Continued home-price weakness reflects the lingering impact of the artificial support provided by homebuyer tax credits in the spring, and their subsequent withdrawal, said CoreLogic Chief Economist Mark Fleming. Stubbornly high unemployment and seasonal factors are also coming into play, he said.
Combine those factors with high shadow and visible inventories, and "the prospect for a housing recovery in early 2011 is fading," Fleming said.
The five states with the greatest year-over-year depreciation in October were Idaho (-15.06 percent), Alabama (-9.3 percent), Oregon (-8.5 percent), Arizona (-8.25 percent) and Florida (-8 percent).
The five states with the highest appreciation were Wyoming (5.67 percent), North Dakota (5.35 percent), Hawaii (2.97 percent), New York (2.93 percent) and Vermont (2.84 percent).
The CoreLogic index covers 572 Core Based Statistical Areas (CBSAs) where 85 percent of total U.S. population lives. The index showed prices falling in six out of 10 the nation's largest CBSAs -- five if distressed property sales were excluded.
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