Home sales near record high in November
Albany, NY – Dec. 20, 2017 – There were 10,719 closed home sales across New York State during November, representing the second-highest total on record for the month, according to the housing market report released today by the New York State Association of REALTORS. The November sales record of 10,991 was set in November 2016. The statewide median sales price grew by 5.8 percent in November compared to last November.
“The near-record number of home sales in November continues to show that buyer enthusiasm remains strong even in the face of ongoing price growth,” said Duncan R. MacKenzie, CEO of the New York State Association of REALTORS. “Favorable mortgage rates and a strong economy have combined to help buyers weather the price growth driven in part by the continued decline in homes listed for sale.”
“With one month left in the year, it is clear 2017 will go in the books as a strong year for housing in New York State. Sales remain on track to finish slightly ahead of the 2016 record and we project the median sales price to show growth of 5.5 to six percent.”
The November 2017 sales total of 10,719 represents a decrease of 2.5 percent from the November 2016 record total of 10,991. The year-to-date (Jan. 1 – Nov. 30) sales total of 122,238 was 2.5-percent above the same period last year.
The November 2017 statewide median sales price was $254,000, an increase of 5.8 percent from the November 2016 median of $240,000. The year-to-date (Jan. 1 – Nov. 30) statewide median sales price was $250,000, an increase of 5.9 percent from the same period in 2016.
November 2017 pending sales increased by 5.6 percent from a year ago to reach 9,945.
The months supply of homes for sale dropped 11.1 percent at the end of November to 5.6 months supply. It was at 6.3 months at the end of November 2016. A 6 month to 6.5 month supply is considered to be a balanced market. The number of homes for sale stood at 63,916 in November, a decrease of 9 percent compared to November 2016.
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]
Builders confident as market primed to expand in 2018
Builder confidence in the market for newly-built single-family homes increased five points to a level of 74 in December on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) after a downwardly revised November reading. This was the highest report since July 1999, more than 18 years ago.
The Northeast inched up a single point in December to 54.
What the net neutrality rollback means for REALTORS
Many real estate professionals and companies may now be at a disadvantage in delivering services to consumers online, as the Federal Communications Commission voted Thursday to repeal net neutrality rules. The move allows internet service providers to restrict the content its consumers see and implement pay-to-play policies, giving priority to content providers who pay a fee. For small-business owners, such as real estate agents and indie brokers, that could severely cripple their ability to reach a wider audience online.
“The FCC’s rollback of the Open Internet Order will mean higher costs and slower service for millions of American consumers and businesses,” Elizabeth Mendenhall, president of the National Association of REALTORS, said in a statement Thursday. “REALTORS have strong concerns about what that might mean for the way consumers search for homes online and real estate is transacted.”
The rollback will impact the majority of REALTORS, who operate small businesses with typically no more than two principals, Mendenhall noted. She vowed that NAR will fight to have net neutrality rules reinstated.
Homeowners say tax reform would hurt them
A majority of recently surveyed homeowners say that changing homeownership tax incentives would restrict their mobility and cause them financial strain, according to new data from the National Association of REALTORS’ fourth-quarter Housing Opportunities and Market Experience survey.
Proposed tax bills currently in the House and Senate could “undercut the incentive of owning a home and would have a detrimental effect on many homeowners’ financial situation and future desire to move,” NAR states on a release about the survey’s findings.
Eighty-five percent of the homeowners surveyed by NAR say they would deduct both mortgage interest and property taxes if they bought a new home. Forty-eight percent of homeowners surveyed say that if changes to the tax code are made they would experience financial strain due to the changes. Also, 30 percent say they would then be reluctant to move.
Consumers maintain upbeat housing attitude
Consumer optimism in the housing market is growing—but it may be short-lived as tax reform looms.
In Fannie Mae’s latest Home Purchase Sentiment Index, the share of respondents who say now is a good time to buy a home increased 7 percentage points from October to November. The share of respondents who say now is a good time to sell a home rose 4 percentage points and is up 21 percentage points year over year. Americans also expressed a greater sense of job security, which tends to bode well for housing in the long-term. Overall, Fannie Mae’s housing index in November neared its all-time high, which was set in September.
“These results are consistent with our expectation that the housing market will continue its modest expansion going forward,” says Doug Duncan, Fannie Mae’s chief economist. However, Duncan cautions that “next month’s survey should offer the public a first look at the influence that potential tax reform may have on consumers’ views toward housing and the broader economy.”
FHA to increase loan limits in 2018
Following on the heels of the Federal Housing Finance Agency, the Federal Housing Administration announced that it will increase its loan limits in most areas of the country in 2018. The FHFA had announced new limits for loans eligible for purchase or guarantee by Fannie Mae and Freddie Mac on Nov. 28.
In high-cost areas of the country, the FHA’s ceiling on loan limits will rise from $636,150 to $679,650, according to the Department of Housing and Urban Development. In addition, the national mortgage limit for FHA-insured reverse mortgages—known as home equity conversion mortgages—will rise from $636,150 to $679,650.
NAR: Pending home sales strengthen 3.5 percent in October
Pending home sales rebounded strongly in October following three straight months of diminishing activity, but still continued their recent slide of falling behind year ago levels, according to the National Association of REALTORS (NAR).
The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 3.5 percent to 109.3 in October from a downwardly revised 105.6 in September. The index is now at its highest reading since June, but is still 0.6 percent below a year ago.
The PHSI in the Northeast inched forward 0.5 percent to 95.0 in October, but is still 1.9 percent below a year ago.
New home sales for Northeast rose more than 30 percent in October
Sales of newly-built, single-family homes in October rose 30.2 percent to a seasonally adjusted annual rate of 56,000, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Nationally, sales rose 6.2 percent to a rate of 685,000.
Millennials: We don’t want to be renters
Though many are stuck renting out of financial necessity, millennials show the same desire for homeownership as their parents and grandparents—and traditional suburban properties appeal to them more than renting or buying in cities, Bloomberg reports.
Many economists have acknowledged that the slow path to homeownership for young adults is contributing to record-low homeownership rates. But for two consecutive quarters, the homeownership rate among those ages 35 and younger has been on the rise. Some economists predict that millennials will eventually own homes at similar rates as their parents.
NYS housing market sets October sales record
Albany, NY – Nov. 21, 2017 – There were 12,178 closed home sales across New York State during October, setting a new record high for the month, according to the housing market report released today by the New York State Association of REALTORS. The previous October sales record was 11,926 in October 2015. The statewide median sales price grew by 9.1 percent in October compared to October 2016.
“In October and throughout 2017 strong homebuyer demand and low inventory combined to drive sales prices higher,” said Duncan R. MacKenzie, CEO of the New York State Association of REALTORS. “Many newly listed homes are selling quickly as evidenced by a nearly 13-percent drop in the number of days homes are on the market.”
“Given the current market trends, including the October growth in both listed homes and pending sales, we project that 2017 home sales could finish slightly ahead of last year’s record total and that the median sales price growth will be 5 to 5.5 percent above 2016.”
The October 2017 sales total of 12,178 represents an increase of 3.7 percent from the October 2016 total of 11,741. The year-to-date (Jan. 1 – Oct. 31) sales total of 111,072 was 2.5-percent above the same period last year.
The October 2017 statewide median sales price was $249,900, an increase of 9.1 percent from the October 2016 median of $229,000. The year-to-date (Jan. 1 – Oct. 31) statewide median sales price was $250,000, an increase of 6.2 percent from the same period in 2016.
October 2017 pending sales increased by 10.4 percent from a year ago to reach 11,823.
The months supply of homes for sale dropped 9 percent at the end of October to 6.1 months supply. It was at 6.7 months at the end of October 2016. A 6 month to 6.5 month supply is considered to be a balanced market. The number of homes for sale stood at 69,321 in October, a decrease of 6.6 percent compared to October 2016.
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]
U.S. Commerce Department: Northeast housing starts rise more than 40 percent in October
Privately-owned housing starts rose 42.2 percent to 145,000 in the Northeast in October, according to data released by the U.S. Commerce Department. September’s total was 102,000.
Nationally, housing starts were at a seasonally adjusted annual rate of 1,290,000, a 13.7-percent increase from the revised September total of 1,135,000.
Building permits for the Northeast also rose in October, increasing 4.1 percent to 126,000, while nationally, building permits rose 5.9 percent to 1,297,000.
Lenders say 3 percent mortgages key for first-time buyers
Mortgage lenders believe first-time home buyers will make up a larger portion of their business in the new year, and they believe 3 percent mortgages are key to getting more into homeownership. The majority of the 200 lenders surveyed by Genworth Mortgage Insurance believe that the demand for 97 percent loan-to-value products will surge in 2018.
Industry professionals were divided on what they viewed as the most likely source of credit expansion in 2018. Forty-five percent of lenders said a higher mix of above-80 LTV loans, while 38 percent said a higher mix of borrowers with below-700 FICO scores. Seventeen percent of respondents said that a higher mix of borrowers with above-41 debt-to-income would be the most likely source of credit expansion.