Home buying fervor has driven home prices to their largest annual gain since 2005, according to a recent article in the Wall Street Journal.
Evidently, home buyer interest – fueled by low mortgage rates as well as reduced inventories – helped drive prices up in 2013.
Now, experts are saying that home buyers and home sellers can expect price gains to level off in the wake of the home buying frenzy.
Key Statistics For National Home Buyers or Sellers
According to the Standard & Poor’s/Case-Shiller price index, U.S. home prices increased 11.3 percent year-over-year during the fourth quarter.
Meanwhile, the Case-Shiller index that measures home prices in 20 major metropolitan areas reported that prices increased 13.4 percent during that same period of time.
And another index, which is calculated by the Federal Housing Finance Agency, reported that prices increased 7.7 percent, to an eight-year high.
More News You Can Use
Here’s what else real estate analysts recently reported about the national housing market:
- Home priced decreased 0.1 percent from November to December in the 20-city index.
- That marked the second straight monthly decline.
- Experts noted that the monthly declines during the fourth quarter were actually the smallest for that period in eight years.
- Meanwhile, in January, sales of previously owned homes dropped 5.1 percent from a year earlier, according to the National Association of Realtors.
- Home builders across the country reported increased profits in recent months. For instance, Luxury builder Toll Brothers said it saw a 21 percent year-over-year increase in its average sales price during the quarter ending in January.
- However, the builder also reported that new contracts for homes during that same quarter decreased 6 percent year-over-year.
- Meanwhile, all 20 cities reported annual gains last year, including Las Vegas with the largest at 25.5 percent and San Francisco following close behind with 22.6 percent.
- Across the US, home prices have increased 21 percent after bottoming out in early 2012.
- Home prices, which dropped 35 percent between 2006 and 2012, now are 21 percent below their previous peak.
- Now, home prices are at the levels they were in mid-2004.
Experts say that the rising home prices are good in one sense, although they may also curb home buyer activity as homes become increasingly less affordable.
Still, in the long run, the leveling out of price gains is a good thing because it means a more stable and robust housing market.
Your National Real Estate Experts
We hope you stop by our blog again soon to get the latest information on national housing market activity.
We’re your national real estate experts and we’re here to help you make an informed decision on the market as a buyer or seller!
Changes are afoot on the national housing market that suggest that this year is going to increasingly favor the home seller. And that means buyers will likely be paying more for real estate in 2014.
According to a recent news article, the National Association of REALTORS® recently reported that nearly 5.1 million homes sold last year, which is the highest rate it’s been since 2006.
Meanwhile, values are rising as home sellers grow increasingly tired of selling their home for “cheap.”
Although this is resulting in longer Days on the Market averages, it also means that home prices are rising.
A Look Back at 2013 Activity
Here’s an overview of national real estate activity, according to December data:
- From January to December 2013, there were 4.87 existing home that were sold on a seasonally-adjusted annualized basis.
- That figure is one percent higher from the month before.
- For 2013 overall, there were 5.09 million home sales, which is a nine percent increase from the year before.
- What’s more, that figure is the highest reading it’s been since 2006.
- Meanwhile, home builders reported increased buyer foot traffic. In fact, they said the activity had reached a 7-year high.
- And by December 2013, the home supply was down to 4.6 months. This means that if activity stayed the same, all available homes for sale would be sold in that time frame.
- The latest report also revealed that homes are not selling as quickly as the year before.
- While 28 percent of homes sold in 30 days or less, the Median Days on the Market actually increased substantially, from 16 to 72 days.
- In fact, Days on the Market has been steadily increasing for the last seven months.
- Here’s another thing to note: home prices have increased more than 20 percent in some regional housing markets over the last year, in part because of bidding wars.
- In December, foreclosed homes had a median Days on Market of 67 days.
A Look Ahead to 2014
Experts predict that cold weather in December and January may have created even more pent-up home buyer demand, which could bode well for housing market activity in the coming months as temperatures warm up.
Experts are also saying that while home sales have slowed over the last several months, competition is greater than ever.
This is aided by the fact that home sellers are feeling more confident than ever. They’re no longer worried about whether their home will ever sell, they’re worried about getting the best price possible for their home.
Thus, many have raised their list prices to values that they think are reasonable instead of pricing them undervalue in an effort to attract buyers.
While this might slow the momentum a little (and thus lead to longer Days on the Market), the long-term effect will be that prices will rise as buyers realize this is not a passing trend.
Your #1 Source for National Real Estate News
Please check out our website again soon to receive national real estate market updates and see how recent activity may affect your efforts as a buyer or seller.
The economic recovery is not just confined to one region of the United States, according to a recent news article.
Evidently, a recent report from the U.S. Conference of Mayors noted that almost every city in the country is expected to see economic growth in the New Year!
This is great news for everyone because it shows that our economy continues to strengthen after the recent recession.
Why You Can Expect Great Things in 2014
According to the recent report from the U.S. Conference of Mayors, most cities in the US are expected to see economic growth and job gains in 2014.
Here are the cities that are expected to lead the pack:
- Naples, Florida
- Raleigh, North Carolina
- Atlanta, Georgia
- Austin, Texas
What’s more, those cities who were severely affected by drops in manufacturing or by the housing market crash are also expected to see gains in the new year:
- Youngstown, Ohio is expected to see economic growth of 1.6 percent
- Buffalo, New York is expected to see economic gains of 1.5 percent
- Shreveport, Louisiana is expected to grow by 1.6 percent, after the community saw a 5.2 percent decrease last year.
Experts say that part of the key to economic growth has been the stabilization of housing. Job growth has also helped to encourage spending.
They noted that college towns (such as Lawrence, Kansas or Austin, Texas) are expected to make strong gains while the larger cities (like New York and Chicago) are expected to see more modest growth.
Here are some more highlights of the recent report:
- 340 of 363 metro areas will see economic growth by at least 1 percent.
- Last year, only 183 metro areas saw such growth.
- In addition, experts predict that 69 of those 363 metro areas will see growth exceeding 3 percent.
- And only seven of the 363 metro areas will probably not see economic growth, according to the report.
- While that’s unfortunate, it’s still exceptionally better than last year when 97 metro areas didn’t see growth.
A New Year, A New Economy
With a New Year comes new opportunity. We’re thrilled to know that the local economy in almost all major US cities is expected to grow in the coming year.
Check back here soon to learn about more about national trends that may affect your efforts as a home buyer or seller.
Experts emphasized recently what they’ve been saying for weeks: The US housing market will show even better gains in 2014.
Evidently, experts believe that it will be a good year for housing, despite the fact that sales are likely to level off slightly.
Those interested in buying and selling real estate in the US in 2014 will surely find the following information helpful as they navigate the market!
Good News for US Homes for Sale
Here’s the outlook for the US housing market, according to a recent article I was reading:
- Interest rates on 30-year mortgages are expected to rise above 5 percent by midyear. Currently, the national average is about 4.5 percent.
- Home prices are expected to increase 5 to 6 percent in 2014, which is about half of what it was in 2013.
- New home construction is expected to show immense growth in 2014, which is great for the homebuilding industry as well as those buyers looking for more options.
- The number of foreclosed homes has dropped significantly in the last several months, suggesting that the foreclosure crisis is nearing an end.
In a related article, CoreLogic reported a similarly optimistic outlook for 2014, especially given the most recent data available.
Citing November 2013 data, CoreLogic reported that:
- Home prices increased 0.1 percent from October to November.
- Home prices rose11.8 percent between November 2012 and November 2013,
- 2013 represented the best year for housing since the financial crisis.
- When all was said and done, home prices increased about 11.5 percent in 2013, which was the biggest gain since 2005.
- And sales of existing homes reached 5.1 million in 2013, the National Association of Realtors said. That’s an increase of 10 percent from the previous year.
- That figure is also the highest it’s been since 2006.
- CoreLogic said that, after talking with several economists, they expect sales and prices to continue rising this year, albeit at a slower pace.
Those markets that are expected to be the “hottest” in 2014 include:
- Salt Lake City, Utah
- Seattle, Washington
- Austin, Texas
- San Jose, California
- Miami, Florida
- Raleigh, NC
- Jacksonville, Florida
- San Diego, California
- Portland, Oregon
- Boston, Massachusetts
Buying and Selling US Real Estate
Hopefully it will be a great year for the national housing market. One thing is for sure: It will be an improvement from the year before!
Check back here soon for more pertinent information on the current state of the national housing market!
The sales of new U.S. single family homes fell only slightly in November in the wake of higher mortgage rates.
Meanwhile, prices on new homes continued to rise, signaling to national housing market experts that the market truly is weathering higher mortgage rates, according to a recent news article.
National Housing Market Showing Resilience, Experts Say
The Commerce Department recently reported that sales fell 2.1 percent to a seasonally adjusted annual rate of 464,000 units.
Here’s what else was revealed about recent market activity:
- November’s numbers marked a fall from October’s revised 474,000 pace, which was the highest level since July 2008.
- For November, economists had expected new home sales to be at a 445,000 unit pace in November.
- Compared with November 2012, sales were up 16.6 percent.
- Although higher mortgage rates have slowed the rate of home resales since August, activity is expected to accelerate next year.
- Experts credit this in part to employment gains.
- What’s more, experts say that a lean housing inventory is also expected to increase activity.
- For instance, in November, the supply of houses on the market decreased by 6.7 percent.
- The median price of a new home rose 10.6 percent from a year ago.
- If the housing market remained at November’s sales pace, it would take 4.3 months to clean the market of available homes, which is the smallest inventory there’s been since June.
- In October, the housing market inventory was at 4.5 months.
- For a reference point, a 6-month supply is normally considered as a healthy balance between supply and demand.
- Although home sales decreased in the Midwest and South, sales showed strong gains in the West and Northeast.
Helping You Buy and Sell Homes
The recent activity is actually encouraging, despite the fact that the sale of new single family homes actually dropped.
That’s because the decrease was actually pretty slight, meaning that the national housing market is adapting to higher mortgage rates better than even some experts anticipated.
Check back here soon for more national real estate news that affects your efforts as home buyers and sellers!
Whichever way you look at it, the real estate market is finishing strong as we wrap up 2013!
According to a recent Bloomberg report, several market indicators are showing growth and gains, which is great news for home buyers and home sellers alike!
Today, we’re going to share with you some of the highlights of this recent report. Happy holidays everyone!
US Home Sales
According to the Bloomberg article, purchases of new U.S. homes rebounded during the month of October from the lowest level it’s been in more than a year.
Specifically, home sales of these new homes jumped 25.4 percent to a 444,000 annualized rate. This was only a month after that figure was down to 354,0000, which was the weakest it’s been since April 2012.
Experts say that this signals that home buyers are beginning to adjust to higher mortgage rates.
Aiding this increase in home sales is the fact that there have been employment gains across the board, as well as stock price increases.
Here’s what else the report revealed about national housing market activity:
- Home purchases decreased 6.6 percent in September from a 379,000 annualized pace in August.
- The median home sales price showed a year-over-year decrease of 0.6 percent to $245,800 in October.
- Home purchases rebounded in all four U.S. regions during the month of October
- The biggest increase in home purchases was in the Midwest with a 34 percent increase.
- The supply of homes decreased from 6.4 months to 4.9 months during the month of September
- There were 183,000 new houses on the market by the end of October, which is down from 190,000 during the previous month.
- New construction accounted for about 7 percent of the residential market in 2012.
- Meanwhile, applications for building permits increased by 6.2 percent to a 1.03 million annualized rate, which is the most it’s been since June 2008.
- That’s compared to a September pace of 974,000
- There were 2.13 million previously owned homes for sale by the end of October, which is down from 2.17 million during the month of September.
National Real Estate News at Your Fingertips
As you can see, our national real estate market is becoming more active as residents everywhere become increasingly optimistic about the state of the housing market.
This bodes well for 2014 predictions for the national housing market!
Check back on January 1 as we continue to discuss real estate market activity that affects you!
As real estate experts, we’re always looking for market indicators to suggest whether the market is favoring sellers or buyers.
We look at a variety of factors, including average list price, median sales price and price per square footage.
Another indicator we look at is the days that a home spent on the market before it ultimately sold. And if the latest data is any indication, this metric is certainly starting to favor home sellers!
Why Home Sellers in the US Should Be Optimistic
According to the most recent real estate data, properties listed in September 2013 spent an average of 86 days on real estate websites, compared with 116 days last year!
This suggests that homes are selling nearly a month quicker than they did this time last year.
Here’s what else the most recent real estate data reveals:
- Properties listed in all 30 of the largest metro areas in the country sold quicker in September when compared to last year.
- Those homes in the San Francisco Bay area were listed for the fewest number of days at 48, followed by Sacramento with 59 days and Dallas with 60 days.
- Comparatively, in 2010, homes listed were on the market an average of 119 days.
Experts say that a declining inventory of homes for sale has attracted more eager buyers to the market, resulting in fewer days on the market for homes for sale.
Historically low mortgage rates, an improving economic climate and depressed home price values are further encouraging this activity.
Canadian Real Estate Market Faring Well Too!
Although data on average days on the market was not immediately available, other real estate indicators suggest that Canada’s real estate market is faring just as well!
Here is some recent encouraging data released by the Canadian Real Estate Association:
- Although the number of newly listed homes decreased by 0.8 percent from September to October, the Canadian housing market remains in balanced territory.
- The national average sale price increased 8.5 percent year-over-year in October.
- The MLS® Home Price Index (HPI) increased 3.5 percent year-over-year in October.
- Between September and October, national home sales declined by 3.2 percent.
- Meanwhile, actual (not seasonally adjusted) activity was 8.3 percent higher from October 2012 to October 2013.
The Ultimate Source for Real Estate News
Check back here soon for more updates on how the national real estate markets in the United States and Canada are faring!
And for expert help on your own home-buying or home-selling goals, please contact us today!
Great news for interested home sellers throughout the country: The price for single-family homes has increased in 88 percent of the country’s cities!
That’s according to third quarter data recently discussed in a Bloomberg article.
Experts are saying that the increase is directly attributed to buyers competing for limited inventories as well as a decrease in available foreclosed properties.
Listing Your Home on the Market
But the good news didn’t stop there for those home owners thinking about selling.
Here’s what else was revealed in the recent Bloomberg article:
- The median transaction price showed year-over-year gains in 144 of 163 metropolitan areas measured, according to the National Association of Realtors
- A third of those metropolitan areas had double-digit increases in median transaction price.
- The U.S. housing market had five months of inventory in the third quarter, down from 5.9 months a year earlier
- Completed foreclosures in September dropped a whopping 39 percent from a year earlier.
- Some cities are seeing near record price gains, including San Francisco and San Jose.
- The nationwide median price for an existing single-family home increased 12.5 percent in the third quarter year-over-year.
- Specifically, the nationwide median price is now $207,300.
- Those areas that saw the greatest price increases were Sacramento and Atlanta, which both saw increases of 41.8 percent.
- Las Vegas and Punta Gorda, Florida had the next largest year-over-year price gains with 31.9 percent.
- Other cities with large increases included Los Angeles (26.2 percent) and Phoenix (25 percent).
- Those areas with the biggest price declines were all in Illinois. Peoria had the steepest drop with 13.9 percent, followed by Kankakee (down 9.9 percent) and Rockford (down 8.4 percent).
- Meanwhile, the average mortgage rate for 30-year fixed loans was 4.1 percent.
- That figure is up from a near-record low of 3.35 percent in early May
- Meanwhile purchase contracts for exisiting homes dropped the most in more than three years in September.
- During the third quarter, San Jose had the highest median home price with $805,000.
- Rounding out the top three list was San Francisco (at $705,000) and Honolulu ($679,800.)
- Meanwhile, those cities with the most affordable median home prices were Toledo, Ohio ($87,500), Rockford ($88,900) and Decatur, Illinois ($91,000).
This data suggests that the market is rebounding in a big way, giving home sellers an opportunity to get the price they want for their home.
National Data You Can Use!
Please be sure to check back here soon for updates on the state of the national housing market, and how it may affect your neck of the woods.
And if you have any specific questions as a home seller, make sure to contact us for expert advice and useful resources.
Here’s another sign that the tide has turned on the national real estate market: US homes entering the foreclosure process fell to their lowest levels in 7 years during the 3rd quarter of 2013.
This is tremendous news for interested home sellers because foreclosures have been pulling down median sales prices all across the country for the last few years.
What’s more, the drop in foreclosures signals that fewer homeowners are falling behind on mortgage payments, which is yet another indication that the market is in fact improving.
And that’s good news for everyone!
More National Housing Market Trends
According to a recent Associated Press article, lenders started the foreclosure process on 174,366 homes between July and September, which is the lowest level since the second quarter of 2006.
Here are some more recent trends that experts are seeing on the national real estate market:
- Foreclosure starts fell 13 percent from the previous quarter
- What’s more, foreclosure starts were down 39 percent from the third quarter last year.
- During the third quarter 2013, foreclosure starts saw year-over-year decreases in 38 states, including Colorado, Arizona, California and Illinois.
- Meanwhile, there were year-over-year increases in foreclosure starts in 11 states, including Maryland, Oregon, New Jersey and Connecticut.
- Although there were fewer homes entering the foreclosure process, lenders actually increased their home repossessions. Thus, data shows there was actually a quarterly increase in homes lost to foreclosure.
- Completed foreclosures increased 7 percent between the second and third quarter.
- Still, completed foreclosures were down 24 percent year-over-year during the third quarter
- 119,485 homes were taken back by lenders during the third quarter. Experts project that the country will complete about 507,497 foreclosures by the end of the year, which is actually down about 24 percent from 2012′s total.
- Foreclosures peaked in 2010 with 1.05 million. They have been decreasing since then.
- The total number of homes taken back by banks increased between the second and third quarter in 26 states, including New York, New Jersey, Illinois and Virginia
- During the third quarter, it took an average of 551 days between the time a home began the foreclosure process to the time it was completed repossessed. This is an increase from the average number of days this process took in the second quarter, which was 526 days.
- New York had the longest foreclosure processing time with an average of 1,037 days, or almost three years. Meanwhile, Maine had the shortest foreclosure processing time with 160 days.
- Florida continues to have the highest rate of foreclosures, with a rate that is more than twice the national average during the third quarter.
- The other states that made the Top 10 List for Highest Foreclosure Rates in the 3rd Quarter were: Nevada, Maryland, Illinois, Ohio, Connecticut, Delaware, New Jersey, Indiana and South Carolina.
Keeping Our Eyes on Real Estate Trends for You
While we just shared with you a ton of real estate data, the bottom line is that the drop in overall foreclosure starts is an indication that the US housing market is continuing to improve.
This improvement is being aided by steady job growth, more reliable loans and rising home prices.
Check back soon for more updates on US housing market trends!
Home prices in both the United States and Canada have steadily been increasing over the last several months, according to recent housing market data.
Evidently, CoreLogic Home Price Index recently reported that U.S. home prices have increased in nearly all major cities, and were up 12.4 percent year-over-year in August.
Meanwhile, in Canada, home prices are showing their own gains in terms of home prices!
This is encouraging news for anyone hoping to sell their home soon.
U.S., Canada Home Prices Are On the Rise!
Here are three encouraging signs for both the US housing market and Canadian housing market:
- Home prices increased month-over-month throughout the summer
- The proportion of distressed homes on local markets has been declining
- Home values are seeing year-over-year gains
More specifically, here’s a look at recent activity on the U.S. housing market:
- Home prices increased 1.8 percent between June and July.
- August saw a 0.9 percent increase in home prices
- Nevada saw the largest increase in home prices, with a 25.9 percent year-over-year home price increase.
- Nevada was followed by California, Arizona, Utah and Florida respectively in terms of home price appreciation.
- For metropolitan areas, San Bernandino and Los Angeles in California saw more than a 20 percent year-over-year increase in August. That makes them some of the highest jumpers in price appreciation.
- Out of the 100 largest cities, Akron, Ohio, was the only one to see prices decrease.
- New Mexico had the smallest appreciation, with just a 1.54 percent increase, followed by Vermont, Delaware, West Virginia and Kentucky. Those states had between a 2 and 3 percent increase.
- All of the above statistics factored in distressed sales. But if you take those out, home prices increased by 11.2 percent year-over-year in August 2013
- Still, home prices remain 17.1 percent below their peak in April 2006.
- Analysts remain optimistic about the future, predicting a 12.7 percent price hike for September.
And here’s a look at what Canadians are seeing in terms of home prices:
- Canadian home prices increased by 0.1 percent between July and August
- Home prices were also 1.8 percent higher than a year earlier
Your National Real Estate Experts
The summer home-buying season ended on a positive note in most markets in Canada and the United States, which is sure to please home sellers everywhere!
And given that analysts are expecting this upward trend to continue, home owners can feel optimistic when they ultimately decide to list their properties!
Check back here soon for updates on housing market trends that may affect you!