Dennis Norman
By: Dennis Norman
Today the National Association of REALTORS(R) published their Commercial Leading Indicator for Brokerage Activity for the second quarter of 2009 showing a decline of 1.3 percent to an index of 101.5, down from an index of 102.8 in the first quarter. At 101.5 the index for the second quarter of 2009 is 13.7 percent below the 2nd quarter of 2008 when the index was at 117.6. The index is currently at the lowest level since the first quarter of 1994.
In reviewing NAR’s report, it doesn’t appear any of the sectors have been able to avoid a slowdown, below is a recap by sector: Read more…
Dennis Norman
By: Dennis Norman
The good news about the real estate market keeps coming! Don’t get too excited yet, I don’t know that the worst of it is over yet, not sure if the “fat lady has sang” yet or not, but at least the reports lately on the market have been encouraging.
According to the latest report released today from the National Association of REALTORS(R), existing-home sales in the second quarter showed healthy gains from the first quarter in the vast majority of states.
Existing home sales (including single-family homes and condos) by state rose 3.8 percent to a seasonally adjusted annual rate of 4.76 million units in the second quarter from a rate of 4.58 million units in the first quarter. While an improvement over first quarter, the second quarter numbers are still 2.9 percent below the 4.90 million-unit pace from the second quarter of last year.
In all, thirty-nine states showed sales increases in the second quarter from first quarter and nine states had higher sales numbers for the quarter than a year ago. Read more…
Dennis Norman
By: Dennis Norman
The National Association of REALTORS(R) has been reporting and tracking a “Housing Affordability Index” since January 1989. The index looks at whether or not an average family (an income equal to the median income) can qualify for a loan to buy a median-priced home.
The Housing Affordabiity Index for June was at 159.2 meaning that a family with an average income has 159% of the income they need to afford an average house. This is down from the revised index for January of this year of 176.9 which makes January the month housing was the most affordable since the National Association of REALTORS(R) began this index 20 years ago. Median home prices have increased 10% since January, rising from $164,200 to $180,600 in June, which has led to the degradation in affordability.
Of the four regions in the U.S. the Midwest is leading the way in affordability with an affordability index of 188.50. The Northeast is the least affordable region coming in at 127.9.
Dennis Norman
By: Dennis Norman
The National Association of REALTORS(R) has been reporting and tracking a “Housing Affordability Index” since January 1989. The index looks at whether or not an average family (an income equal to the median income) can qualify for a loan to buy a median-priced home.
The Housing Affordabiity Index for June was at 159.2 meaning that a family with an average income has 159% of the income they need to afford an average house. This is down from the revised index for January of this year of 176.9 which makes January the month housing was the most affordable since the National Association of REALTORS(R) began this index 20 years ago.
If the index had a value of 100 that would mean a family making the median income has the exact amount of income necessary to qualify for a loan to buy a median-priced home. A value beneath 100 means the family is falling short of enough income and any over 100 means the family has more than enough income.
Dennis Norman
By: Dennis Norman
Today the National Association of REALTORS(R) released its existing home sales report for June showing an increase in sales for the 3rd month in a row and rising prices for the month in all regions of the U.S.
Existing home sales, including single-family, town-homes, condominiums and co-ops increased 3.6% in June to a seasonally adjusted annual rate of 4.89 million units. This rate is almost identical to last years sales at the same time which is a first in a quite a while. May’s rate was down 3.6% from a year ago and June is down just 0.2% from a year ago.
Also for the first time in a while, all four regions of the U.S. had an increase in sales for the month with the West leading the pack with a 6.4% increase followed by the South at 4.9%, Northeast at 2.5% and the Midwest a 0.9%. Read more…
Dennis Norman
Today the National Association of REALTORS(R) released its existing home sales report for June showing an increase in sales for the 3rd month in a row and home prices declining less sharply.
Existing home sales, including single-family, town-homes, condominiums and co-ops increased 3.6% in June to a seasonally adjusted annual rate of 4.89 million units. This rate is almost identical to last years sales at the same time which is a first in a quite a while. May’s rate was down 3.6% from a year ago and June is down just 0.2% from a year ago.
Also for the first time in a while, all four regions of the U.S. had an increase in sales for the month with the West leading the pack with a 6.4% increase followed by the South at 4.9%, Northeast at 2.5% and the Midwest a 0.9%. Read more…
To the right of this post is a player for Real Estate Today. The daily radio show produced by The National Association of REALTORS(R). Every day there is a new show with interesting and informative news and information for real estate consumers.
Dennis Norman
By: Dennis Norman
If you are like most people you may be wondering what is “The American Clean Energy and Security Act”? Odds are you would be more familiar with the term “Cap and Trade” bill or “Cap and Tax” bill, both of which have been applied to this.
The Act is H.R. 2454 (later renumbered H.R. 2998) it passed by a narrow margin (7 votes) in the U.S. House of Representatives and has caused quite a stir. This bill has business owners, builders, real estate agents and many others concerned that it will negatively impact their businesses as well as our country’s competitiveness with other countries. The Senate still has to act upon the issue and it will take their approval and the presidents signature before becoming law but I thought I would address it nonetheless. Read more…
Dennis Norman
By: Dennis Norman
The survey, which focused on affordability, foreclosures and refinancing showed:
- Employment concerns and the ability to make mortgage payments are the greatest barriers to home ownership today. This is particularly true for those people 25-49 years of age.
- More than three-fourths (77.4%) of consumers think a median income family can only afford 50% or fewer of the homes for sale in their area. This is in sharp contrast to that fact that a family earning the median income can actually afford nearly 75% of the current homes for sale on Realtor.Com.
- Homeowners that have recently refinanced their mortgages are using the monthly savings from lower payments in different ways: 12.2% to pay their monthly expenses and 12.3% to remodel or repair their home
- One out of five people (20.1%) who say they or someone they know may be facing foreclosure in the near future have not yet taken steps to resolve their situation. Additionally 22.4% have not taken any steps yet but plan to do so before the Making Home Affordable refinance program expires June 10, 2010.
By: Dennis Norman
Lawrence Yun, Chief Economist, NAR
It appears that lower prices along with low interest rates are bringing buyers back into the market as the market continues to show signs of life and gives us hope that we may be near the bottom.
The National Association of REALTORS(R) issued their Pending Home Sales Index Report for May which only showed a modest increase of 0.1% over April, however May marks the fourth month in a row the index has increased. Not since the middle of the boom (October, 2004) have we seen pending sales up four months in a row.
Lawrence Yun, NAR chief economist, does warn though that there may be delays in getting these new sales closed saying “closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions.” Yun is no doubt referring to the new, and controversial, Home Valuation Code of Conduct (HVCC). Yun goes on to say “rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.” Read more…
