Tag Archives: housing inventory

How Homebuyers Can Overcome Tough Competition

Tips for homebuyers

Source: Kiplinger

Redfin Chief Economist says to win in a hot market, home buyers should take advantage of technology to find homes as soon as they are listed.

Making sense of the story:

  • Arm yourself with tech tools to find available homes quickly. With the variety of apps available today, you can receive listing alerts so that you’re notified as soon as a home in your price range or search area hits the market.
  • Buyers will gain an advantage from whatever concessions they can offer. Instead of a small earnest-money deposit, we’ve seen buyers put into escrow their entire down payment or even half of the purchase price.
    You needn’t waive a contingency for inspection in the purchase contract.
  • Rather, you can agree to pay the seller, say, $2,500, or next month’s mortgage payment, if you walk away.
    Work with a local or reputable lender to get a pre¬approval for your mortgage that includes full documentation of your means to obtain a certain amount of financing in advance of a signed purchase contract.
  • That may give you the confidence to waive a contingency for financing, and it’s almost as good as cash for closing a deal quickly.
  • Because sellers can sell their homes in days but may take months to buy, you can gain leverage by offering to “rent back” their home to them for a certain number of months.
  • Fall can be a good time to buy a home because prices generally peak in the summer and ease up in the fall.
  • There’s a bit less inventory, but many fewer buyers. Plus, sellers who list in the fall are serious because they must leave because of job relocation, divorce or something else that made them miss the top of the season.

Read the full story

Homebuyers Move Quickly for Inventory

Falling inventory forces homebuyers to move at fastest pace ever

Source: Housing Wire

housing market forecastHousing inventory fell 8.9 percent from last year in the second quarter of 2017, sending homebuyers scurrying to beat the rising competition.

Housing inventory dropped for nine consecutive quarters, and is currently down a full 20 percent from inventory levels five years ago, a new report from Trulia shows.

And now, homebuyers are snatching up homes at the fastest pace since Trulia began tracking in 2012. While 57 percent of homes were still on the market after two months in 2012, today that number shrank down to 47 percent.

Competition is so fierce, in fact, that 33 percent of Americans who bought a home in the last year made an offer without even seeing the home in person, according to a survey from Redfin, an online real estate brokerage.

This is up from 19 percent of buyers who placed an offer on a home without seeing it first last year. Among millennials, even more placed offers without seeing the home in person — a full 41 percent.

Read the full story

March home sales and price increase

March existing home sales and median price accelerate from previous month and year

Source: C.A.R.

urban real estate prices, most live in suburbsCalifornia home sales rose from both the previous month and year to post the highest sales pace in six months, while strained housing supplies continued to push home prices higher, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

Making sense of the story

  • Existing, single-family home sales totaled 415,220 in March on a seasonally adjusted annualized rate, up 5.5 percent from February and 5.7 percent above March 2015.
  • March’s statewide median home price was $483,280, up 8.9 percent from February and up 4 percent from March 2015.
  • The median number of days it took to sell a single-family home declined in March to 29.9 days, compared with 41.4 days in February and 34.2 days in March 2015.
  • March’s sales level rose above the 400,000 level for the first time in three months.
    C.A.R. President Pat “Ziggy” Zicarelli commented, “California’s housing market is moving in the right direction as we enter the spring home-buying season, but sales growth will likely be isolated in areas where inventory is more abundant and housing affordability is less of an issue. For example, in the Bay Area, where inventory is extremely tight, annual sales are down in the double-digits in seven of the region’s nine counties.”
  • The number of active listings increased slightly for the third consecutive month after declining for five straight months, but was not enough to boost housing supplies. Active listings increased 3.9 percent from February on a statewide basis.
  • The increase in active listings was outpaced by the rate of home sales, causing C.A.R.’s Unsold Inventory Index to drop from 4.6 months in February to 3.6 months in March.

Read the full story: www.car.org/newsstand/newsreleases

California Home Sales Increased in February

California home sales gain steam in February as shift toward more
affordable areas tempers home prices

Source: C.A.R.

urban real estate prices, most live in suburbsModerating home price appreciation and improving housing inventory combined to spur California’s housing market in February as existing home sales increased from both the previous month and year, according to the CALIFORNIA ASSOCIATION OF REALTORS®.

Making sense of the story

  • Existing, single-family home sales totaled 393,360 in February on a seasonally adjusted
    annualized rate, up 2.6 percent from January and 6.4 percent above February 2015.
  • February’s statewide median home price was $446,460, down 4.7 percent from January and up 3.8 percent from February 2015.
  • Statewide sales of condos and townhomes rose 2.6 percent from January and 6.4 percent from February a year ago.
  • The February figure was up 2.6 percent from the revised 383,480 level in January and up 6.4
    percent compared with home sales in February 2015 of a revised 369,630. February’s sales level was below the 400,000 level for the second straight month.
  • C.A.R. President Pat “Ziggy” Zicarelli commented, “Market activity continues to be dampened
    by low housing inventory as baby boomers stay in their homes longer and new home
    construction, while improving, falls below needed supplies.”
  • The number of active listings increased for the second consecutive month after declining for five straight months. Active listings increased 4.1 percent from January on a statewide basis.
  • The median number of days it took to sell a single-family home declined in February to 41.6
    days, compared with 44.5 days in January and 44.1 days in February 2015.

Read the full story: http://www.car.org/newsstand/newsreleases/2016releases/february2016sales

Money Monday: Mortgages are still getting cheaper

Mortgage rates are dropping.

“In December, when the Federal Reserve raised rates for the first time in nearly a decade, many would-be homebuyers assumed it meant the beginning of the end for record-low mortgage rates.

mortgage rates and property taxes

“‘This is evidence that the Federal Reserve isn’t the sole determinant of U.S. mortgage rates,’ said Mark Hamrick, senior economic analyst at Bankrate.

“The 30-year mortgage rate fell to 3.79%, the fourth straight week of declines, according to Freddie Mac. A year ago, the rate averaged 3.66%.

“The rate on a 15-year fixed mortgage also dropped to 3.07%…

“…But tight inventory has helped push home prices higher, creating an affordability problem in many markets throughout the country.

“In response to the lower rates, mortgage applications ticked up 8.8% last week.”

Read the rest of CNN’s article here: money.cnn.com/2016/01/28/real_estate/mortgage-rates-fall

 

Home prices in San Diego up 9%

San Diego home prices ended 2012 with a bang, mirroring a trend seen in other major U.S. metro areas.

The price of a local home sold in December rose 9 percent from the same time a year ago, based on the S&P/Case-Shiller home price report released on Tuesday. That boost is the highest year-ago increase for any given month since July 2010. Values have risen 11 straight months, Case-Shiller data show…

photo

…What’s behind the uptick?

In San Diego, rising sales and a smaller inventory of available homes are driving up price.

Inventory here is near a 52-month low, with about 4,200 active home listings in the county, according to numbers from the San Diego Association of Realtors…

Read more of this article by U~T San Diego here: San Diego home prices up 9%

Rise in Home Sales Signifies Strengthening Market

The long-awaited housing recovery is beginning to blossom, according to industry experts taking a look at recent existing-home sales.

While admitting home sales “are still very low,” Paul Dales, chief economist at Capital Economics, says “it is clear that housing recovery is now well underway.”

The evidence: home sales have been on the rise for the past three months, posting a 5 percent increase in December.

Lawrence Yun, chief economist for the National Association of Realtors (NAR), concurs with Dales’ assessment, saying “The pattern of home sales in recent months demonstrates a market in recovery.”

Yun suggests consumers are gaining confidence from “record low mortgage interest rates, job growth and bargain home prices.”

In addition to the 5 percent increase in December, NAR reported a 1.7 percent annual increase in existing-home sales in 2011, a total of 4.26 million homes for the year.

Distressed homes made up 32 percent of sales in December, according to NAR’s existing home sales report for the month.
Foreclosed home sales closed at about 22 percent below market rate in December, a discount 2 percent higher than that recorded a year earlier.

Investor demand remains steady with 21 percent of homes sold in December going to investors after this category of buyers took 19 percent of purchases in November and 20 percent one year ago.

Cash sales – commonly linked to investors – made up 31 percent of December’s existing-home sales. This rate was 28 percent in November and 29 percent a year ago.

Purchases by first-time home buyers declined in December – both from the previous month and the previous year. First-time home buyers accounted for 31 percent of purchases in December, down from 35 percent in November and 33 percent in December 2010.

Housing inventory is on the decline and fell to its lowest level since March 2005 last month, according to NAR. Approximately 2.3 million homes are available for sale currently.

“The inventory supply suggests many markets will continue to see prices stabilize or grow moderately in the near future,” Yun said.

However, listed inventory is only part of the equation, and according to CoreLogic’s latest numbers, shadow inventory stands at about 1.6 million.

Regardless, Dales believes sales will rise this year. “Housing still won’t contribute much to GDP growth over the next few years, but at least it will no longer subtract from it,” Dales says.