Existing Home Sales Stay Strong; Spring Season Underway

Resold home are moving, and moving. Prices are lower and that's a good thing for buyers. Home affordability is what it is all about. Jump on the train, don't get stuck at the station

Despite sparse home inventory, the National Association of REALTORS® reports that 4.59 million existing homes were sold in February on a seasonally-adjusted, annualized basis. An "existing home" is a home that cannot be classified as new construction.

Last month's sales data represents a 9 percent improvement from the year prior.

There are now just 2.43 million homes for sale nationwide -- a 19% reduction versus a year ago. The complete home inventory would "sell out" in 6.4 months at the current sales pace.

Some analysts believe that a 6-month home supply indicates a housing market in balance.

The real estate trade group's report contained other noteworthy statistics, too :

1. 32 percent of home sales were made to first-time buyers
2. 33 percent of home sales were made with cash (i.e. no mortgage)
3. 34 percent of home sales were of foreclosed homes or homes in short sale

In addition, nearly one-third of all home sales "failed" last month, the result of homes not appraising at the purchase price; or, the buyer's inability to secure mortgage financing; or, insurmountable home inspection issues.

Even accounting for last month's high contract failure rate,though,  the Existing Home Sales report still posted its second-highest reading since May 2010. For today's new york city home buyer, the data may be a "buy signal".

As compared to last fall, home supplies are down and home sales are up. Basic economics tell us that home prices should start to rise shortly -- if they haven't already. After all, the Existing Home Sales data is 30 days old, reporting on February. It's nearly April today.

The good news is that homes remain affordable. With conforming and FHA mortgage rates in the low-4 percent range, home affordability is at its highest in history. Home prices may rise this spring, but at least your mortgage payment should remain low.

Follow the trend because its your friend. Remember, all homes sales occur in a location and all locations are not the same. Their are signs of improvement and they could be in your neighborhood.

Till next time

THE NEW YORK REAL ESTATE NURSE^sm  

Existing Home Sales Climb To A 20-Month Record

According to the National Association of REALTORS®, the January 2012 Existing Home Sales showed 4.57 million units sold last month on a seasonally-adjusted, annualized basis -- a 4 percent increase as compared to December's revised figures.

An "existing home" is one that's been previously occupied and cannot be categorized as new construction.

Beyond the headline numbers, though, there was plenty about which for today's New York City home sellers to get excited. Demand for homes remains strong, foreshadowing higher home prices through 2012.
First, the national housing stock is at a 5-year low.

In January, the number of homes for sale nationwide slipped to 2.31 million, the smallest home inventory since February 2007, and a 21% decrease from just one year ago.

Falling home supply amid constant home demand leads home prices higher. At the current pace of sales, today's complete home inventory would "sell out" in 6.1 months.

Analysts say that a 6-month supply is a market in balance. Anything less is Bull Market territory.

Second, the National Association of REALTORS® says that one-third of all homes under contract "failed" last month. This means that many more buyers tried to buy, but couldn't for a number of reasons including mortgage denials; or, insurmountable home inspections issues; or, homes appraising for less than the contract price.
As contract failures subside, Existing Home Sales are expected to rise even faster.

And, lastly, first-time buyers continue to power the home resale market. In January, 33% of all sales were made to first-time buyers, up four points from last year. This statistic suggests that renters are moving into homeownership, an important component in a sustained housing market recovery.

Given high demand and shrinking supply, we should expect for Queens home prices to move upward in the future months. Thankfully, mortgage rates remain near all-time lows. Their are still good deals to be made. Don't wait, go get them.

Till next time

The New York Real Estate Nurse

Existing Home Sales Jump; Home Supplies Falling

Are home resales rebounding? Just trending?

According to the National Association of REALTORS®, Existing Home Sales rose 8 percent in August from the month prior, and 19 percent as compared to August of last year.

"Existing homes" are homes that are previously owned; ones that cannot be considered new construction.

A total of 5.0 million existing homes were sold last month on a seasonally-adjusted, annualized basis. This is slightly better than the 12-month home resale average, a statistic partially powered by "distressed sales". Distressed homes -- homes in various stages of foreclosures or sold via short sale -- accounted for 31 percent of all home resales in August.

At the current rate of sales, the national home resale inventory would be depleted in 8.5 months. This pace is a full month faster as compared to July, and the lowest home supply reading since March 2011.
Other noteworthy facts from the August Existing Home Sales report :

• There are currently 3.58 million existing homes for sale nationwide
• 29 percent of home buyers paid cash in August
• Real estate investors bought 22% of homes in August, up from 18% in July

Home prices throughout the New York City area are based on Supply and Demand and, at least right now, it appears the supply is dropping. Furthermore, with mortgage rates at all-time lows, it's reasonable to expect demand to pick up. These two conditions should lead home prices higher.

If you're shopping for a home right now, recognize the trends and work them to your advantage. It may be "cheapest" to buy now. Contact your local Realtor.

2009 was a great year to buy a home. 2011 is a great time to buy a home. Buy a home now and lock in a mortgage rate at 4% and you will never be disappointed. You will not say to yourself  " I should of waited".

This is the year, when you look back, you will say YES.

Till next time.

The New York real Estate Nurse