MSC Resources » median home prices

Home Prices Increase Slightly in January 2010

MSC Marketing — Thu, 01 Apr 2010 16:55:21 +0000

By Alejandro Lazo

RISMEDIA, April 1, 2010—(MCT)—A national index of home prices rose unexpectedly in January 2010, with California cities posting strong gains, but some experts warned that the nation’s struggling housing market could be headed for another dip.

The closely watched Standard & Poor’s/Case-Shiller index of 20 metropolitan areas rose 0.3% from December on a seasonally adjusted basis. That marked eight consecutive months of home values improving or at least holding steady.

The index also was down 0.7% from the same month last year, the nearest that the year-over-year reading has come to positive territory in three years.

But expectations about housing’s direction remain mixed as a series of government initiatives intended to bolster sales and stabilize values begin to expire.

Concern over a potential new wave of foreclosures also remains high despite new efforts by the Obama administration to keep struggling borrowers in their homes. “Going forward, forces that will bring home prices back down are mounting,” said Patrick Newport, an economist for IHS Global Insight. “Our view is that despite this report, prices have further to fall—about another 5%.”

The Case-Shiller index, which covers three months of data, was influenced by a sales surge in November when buyers rushed to take advantage of a federal tax credit for first-time purchases before its initial expiration. Sales fell in December and January, even though that program was expanded and extended through April. Although many economists expect the extended tax credit to give sales a further boost, they also expect another fall once the government incentive ends.

“It is way too early for this market to have rebounded the way it has,” said Christopher Thornberg, principal of Beacon Economics.

A breakdown of the index showed mixed results with 12 cities posting increases and the rest decreases. When left unadjusted for seasonal variations, the 20-city index fell 0.4%.

Economists surveyed by Bloomberg had expected the index to fall in January.

David M. Blitzer, chairman of S&P’s index committee, said he was concerned with the slow construction of new homes, falling sales volumes and a potential wave of new foreclosures hitting the market this year. “We can’t say we’re out of the woods yet,” Blitzer said.

But others saw the improvements as a sign that the economic recovery was beginning to help consumers gain confidence. “What people are seeing in the stock market, and what people are feeling, is the beginning of a real recovery,” said Karl E. Case, a professor at Wellesley College and co-creator of the index.

“Now that the economy is starting to come back, I think the psychology has changed,” Case said.

California cities posted solid gains with the Los Angeles metropolitan area up 1.8% to lead the index. San Diego gained 0.9%, and San Francisco rose 0.6%. Richard Green, director of the University of Southern California Lusk Center for Real Estate, said Southern California is showing strength because it was one of the earliest markets to get hit and is rebounding now before other areas. “We fell first, we fell deeply and we didn’t overbuild the way other parts of the country did,” he said. “And if you look at the long-term horizon, the amount of housing built relative to population was less than other places, and it is still really hard to build new houses here,” he said. That means the chances of recovering sooner are good, Green said.

Thornberg attributed the gains primarily to federal government programs and said most of Southern California’s housing gains are a result of fewer foreclosure properties on the market. The falling number of available foreclosures is pushing prices up on lower-end housing, though home prices continue to fall in pricier neighborhoods. “The bottom has been surging up,” Thornberg said. “It really is about the low-end.”

Chicago fell the most—0.8%. Others losing ground included Seattle, Atlanta and Denver. The housing market is likely to be affected soon by the expiration of certain government policies. The Federal Reserve plans to end its $1.25-trillion mortgage-bond-purchase program in the next few days. The program, which has kept interest rates at rock-bottom levels, has helped the Fed buy nearly all the mortgage bonds from housing finance giants Fannie Mae and Freddie Mac, replacing most private investors last year.

At the end of April, the federal tax credit program for first-time buyers and for some current homeowners is scheduled to expire. The program provided up to $8,000 to first-time buyers and up to $6,500 to certain current homeowners.

Also, the Federal Housing Administration, which has stepped up its support of low-interest mortgages for first-time buyers, is tightening its lending standards.

Many economists also remained concerned about a potential wave of foreclosures swamping the market in coming years as borrowers who owe more on their homes default.

The Obama administration late last week unveiled new measures at getting lenders to reduce the principal balances on problem mortgages and refinance underwater homeowners. Experts remain skeptical about whether the changes to the $75 billion Home Affordable Modification Program will help the program reach its goal of keeping 3 million to 4 million homes out of foreclosure through 2012.

Distributed by McClatchy-Tribune Information Services.

http://rismedia.com/2010-03-31/home-prices-increase-slightly-in-january-2010/

Existing-Home Sales Surge in Most States in Fourth Quarter

MSC Marketing — Tue, 16 Feb 2010 15:50:34 +0000

RISMEDIA, February 15, 2010—Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the National Association of Realtors®.

Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.

Total state existing-home sales, including single-family and condo, jumped 13.9% to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2% above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32% of fourth quarter transactions, down from 37% a year earlier.

Lawrence Yun, NAR chief economist, said the first-time home buyer tax credit was the dominant factor. “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he said. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92% in the fourth quarter from 5.16% in the third quarter; it was 5.86% in the fourth quarter of 2008.

In the fourth quarter, 67 out of 151 metropolitan statistical areas reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases; one was unchanged and 84 metros had price declines. In the third quarter only 30 MSAs showed annual price increases and 123 areas were down.

The national median existing single-family price was $172,900, which is 4.1% below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun said.

“Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” Yun said.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said near-term market conditions will remain favorable. “Mortgage interest rates are expected to trend up later this year, but right now we have very good conditions with steadying home prices and favorable inventory in most areas, especially in the higher price ranges,” she said.

“The biggest issue is for repeat buyers, who will have to accelerate their buying plans if they want the expanded tax credit. Since you must have a contract in place by the end of April, the best advice is to consult a Realtor now about qualification criteria and options in your area,” Golder said. Repeat buyers do not have to sell their existing home, but all buyers must occupy the property they purchase as a primary residence to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

In the condo sector, metro area condominium and cooperative prices–covering changes in 54 metro areas–showed the national median existing-condo price was $177,300 in the fourth quarter, down 4.8% from the fourth quarter of 2008. Eleven metros showed increases in the median condo price from a year earlier and 43 areas had declines; in the third quarter only four metros experienced annual price gains.

Northeast
Regionally, existing-home sales in the Northeast rose 11.1% in the fourth quarter to a pace of 1.03 million and are 33.6% higher than a year ago. The median existing single-family home price in the Northeast declined 5.6% to $234,900 in the fourth quarter from the same quarter in 2008, but with widely varying conditions. “In the Northeast, markets with lower median prices that have avoided wide swings, such as Buffalo, are generally showing consistent price gains,” Yun said. “Even so, some of the higher cost areas are showing signs of stabilization, such as Nassau-Suffolk, N.Y., and Boston.”

Midwest
In the Midwest, existing-home sales jumped 14.5% in the fourth quarter to a pace of 1.38 million and are 29.9% above a year ago. The median existing single-family home price in the Midwest rose 1.1% to $141,100 in the fourth quarter from the same period in 2008, with the region accounting for the majority of metro areas experiencing double-digit gains.

Yun said markets with high unemployment rates in Ohio and Michigan experienced large price swings. “Big price gains in many Midwestern areas are due to a more normal range of home sales in contrast with predominately foreclosed sales a year ago,” he said.

South
In the South, existing-home sales rose 13.8% in the fourth quarter to an annual rate of 2.23 million and are 28.2% higher than the fourth quarter of 2008. The median existing single-family home price in the South was $153,000 in the fourth quarter, down 2.4% from a year earlier. “Affordable markets in the South that have relatively better local economies are seeing healthy price gains, such as Houston, Oklahoma City and Shreveport, La.,” Yun said.

West
Existing-home sales in the West jumped 16.2% in the fourth quarter to an annual rate of 1.38 million and are 18.2% above a year ago. The median existing single-family home price in the West was $227,200 in the fourth quarter, which is 8.9% below the fourth quarter of 2008, but with many areas showing notable gains.

“Markets in the West such as San Francisco, San Jose and Denver are showing double-digit price increases, and other markets like San Diego and Anaheim have begun to firm up,” Yun said.

For more information, visit http://www.realtor.org.

http://rismedia.com/2010-02-14/existing-home-sales-surge-in-most-states-in-fourth-quarter/

As Buyers Respond to Tax Credit, U.S. Existing Home Sales Jump 7.4% in November 2009

MSC Marketing — Wed, 23 Dec 2009 16:38:53 +0000

RISMEDIA, December 23, 2009—Existing home sales rose again in November 2009 as first-time buyers rushed to close sales before the original November 30 deadline for the recently extended and expanded tax credit, according to the National Association of Realtors®.

Existing home sales–including single-family, townhomes, condominiums and co-ops– rose 7.4% to a seasonally adjusted annual rate of 6.54 million units in November from 6.09 million in October, and are 44.1% higher than the 4.54 million-unit pace in November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million.

Lawrence Yun, NAR chief economist, said the rise was expected. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” he said. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline.”

An NAR practitioner survey shows first-time buyers purchased 51% of homes in November, compared with an upwardly revised 50% of transactions in October.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.88% in November from 4.95% in October; the rate was 6.09% in November 2008. Last month’s mortgage interest rate was the second lowest on record after bottoming at 4.81% in April 2009.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said conditions are optimal for buyers in the current market. “Inventories have steadily declined and are closer to balanced levels, which indicate home prices in many areas are either stabilizing or could soon stabilize and return to normal appreciation patterns,” she said. “This means buyers still have good choices but are purchasing near the bottom of the price cycle with historically low mortgage interest rates. Throw a tax credit on top and it really doesn’t get any better for buyers with secure jobs and long-term ownership plans.”

Total housing inventory at the end of November declined 1.3% to 3.52 million existing homes available for sale, which represents a 6.5-month supply at the current sales pace, down from an 7.0-month supply in October.

Raw unsold inventory figures are 15.5% below a year ago. The last time there was a lower supply of homes on the market was April 2006 when it was at a 6.1-month supply.

“Nearly all markets experienced a solid sales gain from one year ago,” Yun said. “The only markets with measurably lower sales were in San Diego, Riverside, and Sacramento, where inventory shortages for lower priced homes are limiting sales.”

For the second month in a row, sales have risen in all price classes from a year earlier. Prior to October, the only consistent gains were in the lower price ranges.

The national median existing-home price for all housing types was $172,600 in November, which is 4.3% below November 2008. Distressed properties, which accounted for 33% of sales in November, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

Single-family home sales jumped 8.5% to a seasonally adjusted annual rate of 5.77 million in November from a level of 5.32 million in October, and are 42.1% above the pace of 4.06 million in November 2008. The median existing single-family home price was $171,900 in November, down 4.4% from a year ago.

Existing condominium and co-op sales in November were unchanged from a seasonally adjusted annual rate of 770,000 in October, but are 60.1% above the 481,000-unit pace a year ago. The median existing condo price was $178,000 in November, which is 3.1% below November 2008.

Northeast
Regionally, existing home sales in the Northeast rose 6.6% to an annual level of 1.13 million in November, and are 52.7% higher than November 2008. The median price in the Northeast was $223,400, down 13.1% from a year ago.

Midwest
Existing-home sales in the Midwest increased 8.4% in November to a pace of 1.55 million and are 53.5% above a year ago. The median price in the Midwest was $140,800, a decline of 0.4% from November 2008.

South
In the South, existing-home sales rose 4.8% to an annual level of 2.39 million in November and are 44.8% higher than a year ago. The median price in the South was $151,400, down 1.4% from November 2008.

West
Existing-home sales in the West increased 10.6% to an annual rate of 1.46 million in November and are 28.1% above November 2008. The median price in the West was $231,100, which is 4.1% below a year ago.

http://rismedia.com/2009-12-22/as-buyers-respond-to-tax-credit-u-s-existing-home-sales-jump-7-4-in-november-2009/

Home Price Reduction Levels Drop to 2009 Low

MSC Marketing — Fri, 11 Dec 2009 20:13:57 +0000

RISMEDIA, December 11, 2009—Trulia, Inc., a real estate search site, has announced that 22% of homes currently on the market in the United States as of December 1, 2009 have experienced at least one price cut, the lowest level since Trulia started tracking price reductions in April 2009. The total amount slashed from home prices also dropped from $28.1 billion in November to $24.7 billion in December, representing a 12% decrease. The average discount for price-reduced homes slightly increased to 11% off of the original listing price compared to 10% in the previous four months. The number of listings on Trulia also decreased by 9% from the previous month.

South Reports Least Amount of Homes Reduced
The South has the lowest levels of price reductions, with 19% of current listings experiencing at least one price cut, a 21% decrease from the previous month. Kentucky, Louisiana, Arkansas Oklahoma and Mississippi are all seeing less than 15% of listings with price reductions. (Regions according to the U.S. Census Bureau)

-South – 19% of listings with price reductions
-West – 20% of listings with price reductions
-Midwest – 22% of listings with price reductions
-Northeast – 25% of listings with price reductions

“We saw some of the highest levels of reductions last month, as home owners raced to sell their homes in advance of the November 30 expiration of the tax credit,” said Pete Flint. “We are now seeing fewer reductions at the low end of the market as those sellers are increasingly in sync with market prices. With the expansion of the tax credit to repeat home buyers and extension to April 30, we expect to see an increase in price reductions at the higher end of the market in the first quarter of 2010.”

For the first time since Trulia started tracking price reductions in April 2009, one major U.S. city has reached 40% of listings with price reductions- Minneapolis. This is the second straight month that Minneapolis has held the top spot for highest percentage of price reductions.

Cities experiencing significant increases in percentage of listings with price reductions from June 2009 to December 2009 include:
-Kansas City, MO – 40% increase in price reductions
-Omaha, NE – 39% increase in price reductions
-Houston, TX – 32% increase in price reductions
-Minneapolis, MN – 29% increase in price reductions
-Arlington, VA – 28% increase in price reductions

Cities showing signs the highest percentage of declines for listings with price reductions from June 2009 to December 2009 include:
-Las Vegas, NV – 30% decrease in price reductions
-San Jose, CA – 30% decrease in price reductions
-Long Beach, CA – 25% decrease in price reductions
-Honolulu, HI – 23% decrease in price reductions
-Albuquerque, NM – 22% decrease in price reductions

Luxury Market Still Hardest Hit
Luxury homes (those listed at two million dollars and above) continue to bear the brunt of discounts being offered with an average of 14% being slashed from the original asking price compared to 10% for homes listed under $2 million. Additionally, luxury homes represent less than 2% of all current listings on Trulia, but are responsible for 26% of the $24.7 billion in home price reductions.

For more information, visit http://www.trulia.com.

Tax Credit May Offer Foreclosure Buffer

MSC Marketing — Tue, 10 Nov 2009 15:57:58 +0000

By Tom Bayles, Tuesday, November 10, 2009

Stan Humpfries, Zillow.com Chief Economist

Home values are still falling in the Sarasota-Bradenton market, but the trend is showing signs of slowing — and might slow further with the recent passage of an extended home buyers tax credit, Zillow.com’s chief economist said Monday.

Stan Humphries, who last month predicted through an analysis of the regional market for the Herald-Tribune that a new wave of foreclosures would further depress prices in Manatee and Sarasota counties, said Congress’ move to extend the tax credit both in length and breadth could ameliorate some of the potential drop in Southwest Florida.

“We could see a bump in demand that could partially offset the increased supply of foreclosed homes on the market,” said Humphries, chief economist for the online home valuation service. “The credits are likely to bring continued stabilization in prices over this period versus the price declines that we almost certainly would see otherwise.“ Zillow released an analysis on Monday that showed home values in Sarasota-Bradenton fell 14 percent in the third quarter compared with the same period in 2008. Prices in the Charlotte County market dropped 10 percent during the same time frame. But prices in the region were near what is considered statistically flat from the second quarter to the third, which ended in September.

Meanwhile, another set of data from housing tracker Metrostudy also found some signs of life in new home construction in Southwest Florida.

Builders in the region started more homes in the third quarter than in the previous two quarters combined, and the boost was not limited to the lower price ranges, which has been where the builders who have remained busy during the downturn have focused.

There were 155 new homes started in the region at a price below $200,000 during the most recent quarter, a 9.9 percent increase from the second quarter. In the $200,000 to $350,000 range, there were 131 starts, up 4 percent. Forty-three homes priced above $350,000 were started in the third quarter, nearly double the second quarter tally, Metrostudy reported.

The company also uses finished vacant inventory as a fundamental indicator to monitor the health of housing markets. That inventory in this region dropped 30 percent in all price ranges, though the total still remains above a level of equilibrium, Metrostudy said.

HOME FACTS

The Zillow Home Value Index measures the value of all homes, not just those those that were on the market and sold. The online home valuation service released this data Monday on Southwest Florida’s real estate market.

SARASOTA-BRADENTON

Nearly 50 percent of single-family homes with mortgages were underwater at the end of September.

Homes that sold for a loss numbered 47.2 percent of all homes sold in September.

Home values dropped an average 14.3 percent in September compared with the same month in 2008 to $155,300. But in the short-term, home values were nearly statistically flat with a drop of 1.1 percent from the second quarter to the third.

CHARLOTTE COUNTY-NORTH PORT

About 40 percent of single-family homes with mortgages were underwater at the end of September.

Homes that sold for a loss numbered about 41 percent of all homes sold in September.

Home values dropped by 10.6 percent in September compared with the same month in 2008 to $122,400. But similar to Sarasota-Bradenton, the drop was nearly statistically flat with an increase of 1.1 percent from the second quarter to the third.

SOURCE: Zillow.com

Related Links:

Slump? What slump? For some Realtors, business is thriving

Is the recession waning?

Home prices edge up

Housing bottom? Analysts wary

Home sales heat up while prices stay flat

National home sales rise 9.4 percent

To view the entire article, click here.

President Signs Homebuyer Tax Credit Extension

MSC Marketing — Tue, 10 Nov 2009 13:56:26 +0000

Tax Credit Extension

President Obama signed H.R. 3548 Friday morning, enacting into law an extension, and adjustment, of the $8,000 tax credit for first-time buyers. Among other things, the extension adds money for certain move-up buyers; creates one deadline for signing a contract and a later deadline for closing; changes income requirements; and limits a purchased home’s cost to $800,000.

“Extending the homebuyer tax credit and expanding it to reach more homebuyers is the right thing to do,” says 2009 Florida Realtors® President Cynthia Shelton. “It is critical to maintaining the positive momentum we’ve been experiencing in the housing market and in the overall economy. Florida Realtors applaud congressional leaders for taking action to extend the homebuyer tax credit into 2010, which will help Florida families realize their dream of homeownership, improve our communities and strengthen our economy.”

Adds John Sebree, Florida Realtors vice president of public policy, “Florida residents enjoy two additional advantages. The Florida Homebuyer Opportunity Program (FHOP), created by the Florida Legislature earlier this year, still has approximately $28 million that first-time homebuyers can access and use toward their downpayment. And move-up buyers now have the ability to ‘port’ their current property tax savings to a new home.”

To view the entire article, click here.

Sarasota-Bradenton home sales post double-digit increase

MSC Marketing — Thu, 24 Sep 2009 18:41:08 +0000

Home sales post double-digit increase

By Tom Bayles & Aaron Kessler

Homes sales in the Sarasota-Bradenton market put in another double-digit increase during August, with 23 percent more homes changing hands compared with this time last year.

Related Links:

National home sales drop 2.7 percent

Prices, however, gave some ground, dropping 8.5 percent to $164,200 when compared with July. The median sales price was down 25 percent from a year ago, according to data released Thursday by the Florida Association of Realtors.

In Charlotte County-North Port, sales rose 31 percent compared with a year ago. Prices dropped 1.6 percent to $103,300 when compared with July and were down 25 percent from a year ago.

Statewide, sales rose 28 percent, with 13,850 homes changing hands, the 12th consecutive month of rising sales. The median sales price was $147,400 in August, down 22 percent from the same time a year ago.

But home resales nationally dipped unexpectedly last month after a four-month streak of gains, providing evidence that the housing market recovery remains fragile.

The National Association of Realtors said that sales dropped 2.7 percent to a seasonally adjusted annual rate of 5.1 million in August, from a pace of 5.24 million in July.

Sales, which were still up 3.4 percent from a year earlier, had been expected to rise to an annual pace of 5.35 million, according to economists surveyed by Thomson Reuters. – Sarasota Herald Tribune

To read the entire article, Click Here.

Sarasota-Bradenton Home Sales Spike 30% in July

MSC Marketing — Fri, 21 Aug 2009 19:15:43 +0000

National home sales, as reported by the National Association of Realtors for the month of July, were the best in several years.

Friday, August 21, 2009

Home sales in the Sarasota-Bradenton market rose 30 percent during July as buyers scurried to lock in a tax credit of 10 percent of the purchase price, or up to $8,000.

Prices in the market were down 22 percent from a year ago at $179,500, but continued to show stability, rising 10 percent from $162,700 in June, according to data released Friday by the Florida Association of Realtors.

In Charlotte County-North Port, sales rose 24 percent in July, but the median sales price of $105,000 was down 26 percent from a year ago and 28 percent from June.

Statewide, home sales rose 37 percent, with the median dropping 24 percent to $147,600. That price was roughly flat with $148,000 last month.

Nationally, sales in July posted the largest monthly increase in at least 10 years, perhaps a sign that the U.S. housing market is rebounding quicker than expected. – HeraldTibune.com (article by Tom Bayles & Aaron Kessler)

To read the entire article, please click here.

Related Links (Provided by, Florida Association of Realtors and the University of Florida Real Estate Research Center):

Homes prices and sales | Graphics

Condo prices and sales | Graphics

The Consequences of Overpricing

MSC Marketing — Tue, 11 Aug 2009 16:09:34 +0000

Overpricing results in a significant decrease in interest in your property, leading to fewer showings, less qualified buyers and limited mortgage options.

Click image to view full size in printable form.

Charlotte Board – Statistics

MSC Marketing — Thu, 02 Jul 2009 19:48:05 +0000

Charlotte Board Statistics

Year Over Year Residential Sales Volume
Breakdown of Residential Sales by Month

Click image to view full size in printable form.

Charlotte_Board_Stats