Sales of new single-family homes in the Northeast in March fell 54.8 percent to 19,000, according to the U.S. Commerce Department. February’s revised rate was 42,000.
Nationally, new home sales were at a seasonally adjusted annual rate of 694,000, 4 percent above the revised February rate of 667,000. This is 9.8 percent above the March 2017 estimate of 638,000.
Albany, NY – April 23, 2018 – With 25,192 closed sales across the Empire state in the first quarter, the housing market posted a strong start to 2018, even as it fell short of 2017’s record, according to the housing market report released today by the New York State Association of REALTORS. The first quarter 2018 statewide median sales price of $260,000 represented an increase of 7.4 percent from a year ago.
“The record-setting 2017 housing market is proving to be a tough act to follow as the continuing decline in listed homes is slowing down eager buyers,” said Duncan R. MacKenzie, CEO of the New York State Association of REALTORS. “The 2018 first quarter sales total is the second highest on record, providing unmistakable evidence that buyer demand is still high as we move toward the typically busy spring and summer markets.”
“Moving forward, the ongoing health of the housing market will be dictated by the much-needed return of home sellers and gains in the construction of new homes to meet buyer demand,” MacKenzie said, adding that the current market conditions offer a terrific opportunity for sellers. “While mortgage rate increases have not yet deterred buyers, we will be watching for any potential impact the predicted future interest rate increases may have on home sales.”
There were 25,192 closed sales in the 2018 first quarter, down 3.9 percent from the 2017 first quarter total of 26,214. March 2018 closed sales decreased by 9.3 percent compared to a year ago to 8,574.
The 2018 first quarter statewide median sales price was $260,000, an increase of 7.4 percent compared to the first quarter 2017 median of $242,000. The March 2018 statewide median sales price of $260,000 represents an increase of 7.4 percent compared to the March 2017 median of $242,000.
Pending sales decreased 2.6 percent to 29,103 in the 2018 first quarter compared to the 2017 first quarter total of 29,895. March 2018 pending sales (11,686) were down 5.3 percent compared to March 2017 (12,338).
The months supply of inventory dropped 12.1 percent at the end of the first quarter to 5.1 months supply. It was at 5.8 months at the end of the 2017 first quarter. A 6 month to 6.5 month supply is considered to be a balanced market. Inventory stood at 57,975, a decrease of 10.2 percent compared to the 2017 first quarter.
Additional data is available at http://www.nysar.com/industry-resources/market-data
Editor’s Note: All data is compiled from multiple listing services in the state of New York and the data include townhomes, condominiums and existing single-family homes.
The New York State Association of REALTORS is a not-for-profit trade organization representing more than 55,000 of New York State’s real estate professionals. The term REALTOR is a registered trademark, which identifies real estate professionals who subscribe to a strict code of ethics as members of the National Association of REALTORS. These REALTORS are also members of the New York State Association of REALTORS as well as their local board or association of REALTORS.
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Salvatore I. Prividera Jr.
Director of Communications
518-463-0300×208 office
[email protected]
Privately-owned housing starts in March rose 0.8 percent in the Northeast to 132,000, according to data released by the U.S. Commerce Department. February’s total was 131,000.
Nationally, housing starts were at a seasonally adjusted rate of 1,319,000, a 1.9-percent increase from the revised February total of 1,295,000.
Building permits for the Northeast fell 5.5 percent to 138,000, while nationally, building permits rose 2.5 percent to 1,354,000.
Builder confidence in the market for newly-built single-family homes edged down one point to a level of 69 in April on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).
The Northeast also fell one point to 55.
The Federal Emergency Management Agency (FEMA), which oversees federal flood insurance, has come up with a few small but meaningful program changes that will make it easier for households to switch to private insurance if they can get a better deal that way.
First, the agency has lifted the requirement that households retain their federal coverage if they switch to private insurance before their coverage term is up. Prior to this change, households had to maintain their federal coverage even after switching to private coverage, which meant they had to pay two sets of premiums if they made the switch.
And second, insurance companies that offer federal coverage can now also offer private coverage as well, either their own or another company’s. Prior to this change, if a company offered the federal option, it was prohibited from providing a private alternative.
Rising home and rental costs are pressing millennials to expect more from their parents. About 17 percent of millennials – those born between 1981 and 1996 – expect their parents to help them with their first down payment on a home, according to a report by Apartment List, based on about 13,000 responses.
The survey also showed about 8 percent of millennials who are not students get some form of financial help from their parents to cover monthly rent; one-third of those renters have their rent paid in full by their parents.
According to the latest poll by the Siena Research Institute (SRI), New York State consumer home buying plans were down 7.1 percent in the first quarter of 2018. Overall, New York State consumer confidence was down 5.2 points to 87.1 from the fourth quarter of 2017. New York’s overall consumer confidence is 14.3 points below the nation’s index of 101.4.
Buying plans were also down for consumer electronics and cars/trucks. Buying plans were up for major home improvements and held even for furniture.
The latest consumer sentiment index from Fannie Mae shows that home buyers don’t seem to be deterred by rising prices and rates, at least for now. The net share of survey respondents who said now is a good time to buy rose 10 percentage points in March month over month and is now at 32 percent, according to Fannie Mae’s Home Purchase Sentiment Index, based on a poll of about 1,000 consumers.
Overall, the index rose 2.5 percent in March to a reading of 88.3. Two of the six components registered the largest increases last month: the share of consumers who said it’s a good time to buy and those who were optimistic about selling. The net share of consumers who reported it was a good time to sell a home rose 3 percentage points in March.
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More generations are living under one roof together. A new analysis from the Pew Research Center shows that households with two or more adult generations hit an all-time high in 2016, using the most recent census data available for the analysis.
The number of multigenerational households rose to an all-time high of 20 percent – or 64 million – of the U.S. population in 2016.
The multigenerational household trend appears to be growing across nearly all racial and age groups, the Pew Research Center reports. A specific increase in Asian and Hispanic populations does make up a significant part of the boost—both ethnic groups are more likely to live in multigenerational households than white households. About 29 percent of Asians lived in a multigenerational household in 2016 compared to 27 percent of Hispanics, 26 percent of blacks, and 16 percent of whites.
Also, millennials are the most likely age group to live in a multigenerational household. Thirty-three percent of those ages 25 to 29 live with their parents, according to Pew Research’s analysis. But a greater number of older adults are starting to live with their adult children too. Twenty-four percent of those aged 55 to 64 are living with their children, and 21 percent of those ages 65 and older are living with their children or adult grandchildren, according to the analysis.
Monthly mortgage payments have risen an average of nearly 13 percent nationwide over the last year—or an extra $168—as buyers grapple with both higher home prices and increasing mortgage rates, according to a realtor.com analysis. Luxury buyers are feeling the worst sticker shock, paying double the rate. In the top 10 percent of the market, owners are now paying an average $241 more per month.
Mortgage interest rates are about a half of a percentage point higher than they were at the beginning of the year, and the Federal Reserve has signaled there are more hikes to come.
Different generations of home buyers may have varying tolerance levels for mortgage rate fluctuations. Millennials are pursuing homeownership at a time when interest rates are at historic lows, averaging in the 4-percent range, while older buyers remember when they were in the double digits. So for millennials, “even a minor upswing [in interest rates] may seem significant,” The Wall Street Journal reports.
Some home shoppers are reportedly rushing to make offers without seeing homes first, bidding well above the asking price, or waiving inspections entirely to get sellers to find their offer the most alluring.
Record low supplies of homes for sale are driving up prices across the country.
As for sellers, they may find some big profits when they do sell. “It’s going to have the feel of a hot market” with multiple offers and bidding wars, says Lawrence Yun, the chief economist for the National Association of REALTORS.