U.S. Commerce Department: Northeast housing starts fall, building permits rise in July
Privately-owned housing starts in July fell 15.7 percent to 129,000 in the Northeast, according to data released by the U.S. Commerce Department. June’s total was 153,000.
Nationally, housing stars were at a seasonally adjusted annual rate of 1,155,000, a 4.8-percent decrease from the revised June total of 1,213,000.
Building permits for the Northeast rose in July, increasing 19.2 percent to 124,000, while nationally, building permits fell 4.1 percent to 1,223,000.
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More buyers putting down less on a home
A 20-percent down payment is no longer the norm. In the past year, 1.5 million borrowers purchased their homes with down payments of less than 10 percent, according to a study by Black Knight Financial Services. That marks a seven-year high.
The growth of low down payment loans has mostly been triggered by new programs offered by mortgage financing giants Fannie Mae and Freddie Mac, which brought back 3 percent down payment loans in 2014. They require borrowers to pay mortgage insurance, just like the FHA does.
So far, defaults on recent low down payment loans have been modest, Black Knight reports. But economists note that’s mostly because home prices are rising fast and borrowers have been gaining equity quickly.
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Housing markets across NY rank as most affordable in the country
Syracuse, NY and Buffalo-Cheektowaga-Niagara Falls, NY were in the top five affordable major housing markets in the country according to the second quarter National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI). Glens Falls, NY and Watertown-Fort Drum, NY were included in the top five most affordable smaller housing markets.
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NAR warns of text message scam targeting members
NAR is warning members that if you receive a text message asking for payment of a fine or sales tax on a prize, it is not from them. In one version of the scam, a scammer levies false ethics accusations against a member and demands payment of a fine. Additionally, NAR has seen versions of a text purportedly from NAR, telling the recipient they have won a prize (a car or a TV) sponsored by the National Association of REALTORS. NAR has reported both variants of the scam to the FBI.
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Builder confidence in the 55+ housing market strengthens in second quarter
Builder confidence in the single-family 55+ housing market strengthened in the second quarter of 2017 with a reading of 66, up 11 points from the previous quarter, according to the National Association of Home Builders (NAHB). This is the 13th consecutive quarter with a reading above 50, which means that more builders view conditions as good than poor.
All three components of the 55+ single-family HMI posted increases from the previous quarter: Expected sales for the next six months increased 12 points to 80, an index high, while present sales rose eight points to 70 and traffic of prospective buyers jumped 19 points to 53, also an index high.
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NAR: Increase in commercial member income and sales volume
Commercial real estate markets continue to improve, with REALTORS specializing in commercial real estate reporting both an increase in member’s gross income and sales volume, according to the National Association of REALTORS 2017 Commercial Member Profile.
The median gross annual income for commercial members in 2016 was $120,800, an increase from $108,800 in 2015. Commercial members completed a median of eight sales transactions in 2016, a decrease of one since 2015. While the number of transactions decreased slightly in 2016, the sales volume increased again this year. The median sales transaction volume in 2016 among members who had a transaction was $3,500,000, an increase from $2,931,000 in 2015.
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NAR: Pending homes sales recover in June
After declining for three straight months, pending home sales reversed course in June as all major regions, except the Midwest, saw an increase in contract activity, according to the National Association of REALTORS’ Pending Home Sales Index.
In the Northeast, pending home sales inched forward 0.7 percent to 98 in June, and is now 2.9 percent above a year ago.
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New home sales edge up nationally, remain unchanged for Northeast
Sales of newly-built, single-family homes in June inched up 0.8 percent to a seasonally adjusted annual rate of 610,000, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Sales in the Northeast were unchanged.
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NAR: Existing-home sales retreat 1.8 percent in June
Existing-home sales slipped in June as low supply kept homes selling at a near record pace, but ultimately ended up muting overall activity, according to the National Association of REALTORS (NAR).
Total existing-home sales decreased 1.8 percent to a seasonally adjusted annual rate of 5.52 million in June from 5.62 million in May. Despite last month’s decline, June’s sales pace is 0.7 percent above a year ago, but is the second lowest of 2017.
June existing-home sales in the Northeast fell 2.6 percent to an annual rate of 760,000, but are still 1.3 percent above a year ago.
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Economists predict 2017 as the best year for new construction in a decade
A shortage of homes for sale combined with growing buyer demands will likely spark home builders to construct the most homes this year than in the last decade, economists told HousingWire. The Midwest and Northeast will likely see the most uptick in new-home construction.
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New York State home sales set second quarter record
Albany, NY – July 24, 2017 – The New York State housing market set a record high for second quarter home sales, reaching 32,444 homes sold, according to the housing market report released today by the New York State Association of REALTORS®. The second quarter statewide median sales price of $245,000 represents an increase of 6.5 percent from the 2016 second quarter.
“Homebuyers, buoyed by a healthy economy and still low mortgage rates, have set sales records for two consecutive quarters in 2017,” said Duncan R. MacKenzie, CEO of the New York State Association of REALTORS®. “Exceptionally strong buyer demand throughout the first half of 2017 has driven a nearly 3-percent growth in home sales compared to the first six months of 2016,” he said. The 2016 housing market set the current annual record for home sales in the Empire State.
“As we look ahead to the second half of the year, we continue to closely monitor the ongoing decline in the number of homes listed for sale,” said MacKenzie. “If the trend continues, we expect an impact on home sales and selling prices.”
There were 58,490 closed sales through the first six months of 2017, a 2.9-percent increase from 2016.
There were 32,444 closed sales in the 2017 second quarter, up 0.9 percent from the 2016 second quarter total of 32,141. June 2017 closed sales decreased to 12,610, a 2.7-percent reduction compared to a year ago.
The 2017 first half statewide median sales price was $244,000, a 6.1-percent increase from the same period in 2016. The second quarter statewide median sales price was $245,000, an increase of 6.5 percent compared to the second quarter 2016 median of $230,000. The June 2017 statewide median sales price of $264,000 represents an increase of 9.3 percent compared to the June 2016 median of $241,500.
Pending sales increased 2 percent to reach 41,478 in the 2017 second quarter compared to the 2016 second quarter total of 40,647. June 2017 pending sales (14,388) were up 4.5 percent compared to June 2016.
The months supply of inventory dropped 17.1 percent at the end of the second quarter to 6.3 months supply. It was at 7.6 months at the end of the 2016 second quarter. A 6 month to 6.5 month supply is considered to be a balanced market. The number of homes for sale stood at 71,064, a decrease of 14.8 percent compared to the 2016 second 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]
NAR, House Financial Services Committee reach agreement on flood insurance legislation
The National Association of REALTORS recently said that significant improvements to the “21st Century Flood Reform Act,” key legislation aimed at strengthening and reauthorizing the National Flood Insurance Program, have cleared the way for endorsement of the bill. Among the changes, REALTORS support the House Financial Services Committee’s commitment to retaining “grandfathering” – a policy that protects homeowners from significant rate increases when a flood map changes.
The most recent draft will also limit proposed increases to fees and rate hikes that policyholders faced under previous iterations of the legislation. Earlier versions of the legislation included more dramatic cost increases for homeowners and eliminated grandfathering protections beginning in 2021.
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