New-home sales increase in May nationally, fall for Northeast
The median price for a new single-family home reached a record high in May of $345,800, the Commerce Department reports. Buyers will be paying a huge premium for new construction, as new-home prices are now 16.8 percent higher than they were a year ago.
The higher price tags don’t seem to be spooking home shoppers nationally, with 61,000 new homes purchased in May. This is 2.9 percent higher than April and 8.9 percent higher than a year ago.
In the Northeast, new-home sales fell 10.8 percent.
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Quarterly HOME survey shows more homeowners think now is a good time to sell
Existing housing inventory has declined year over year each month for two straight years, but new consumer findings from the National Association of REALTORS offer hope that the growing number of homeowners who think now is a good time to sell will eventually lead to more listings. That’s according to NAR’s quarterly Housing Opportunities and Market Experience (HOME) survey, which also found that fewer renters think it’s a good time to buy a home.
According to the survey, 71 percent of homeowners think now is a good time to sell this quarter, which is up from last quarter (69 percent), and considerably more than a year ago (61 percent).
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Mortgage rates hold at low levels
Home shoppers are getting another week to lock in some of the lowest mortgage rates of the year. According to Freddie Mac, 30-year fixed-rate mortgages remained relatively flat, falling 1 basis point to 3.9 percent. Mortgage rates are continuing to hold at year-to-date lows amidst ongoing economic uncertainty.
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Rochester and Buffalo rank as top two most affordable housing markets
New York State has a lot to offer home buyers, with Rochester and Buffalo ranking as the U.S. metros with the lowest home prices. The median value of an owner-occupied home is $138,900 in Rochester and $135,200 in Buffalo.
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New York State May home sales reach record level
Albany, NY – June 21, 2017 – Homebuyer demand remained strong in the Empire State during May as closed sales set a record for the month at 10,704, surpassing the record set last May by 4.6 percent, according to the housing market report released today by the New York State Association of REALTORS®. The statewide median sales price continued its upward climb, increasing by 7.1 percent compared to last May.
“Spring buyer activity remained strong as New Yorkers closed on a record number of homes in May,” said Duncan R. MacKenzie, CEO of the New York State Association of REALTORS®. “This is a welcome reversal after the slight dip in April sales as some buyers struggled to find their next home.”
“The first month-over-month increase in new listings since March 2016 brings good news for those still searching for their dream home,” said MacKenzie, noting the 3.2-percent increase in newly listed homes during May, compared to a year ago. “Sales in the months ahead will undoubtedly be aided by this influx of new listings. However, we are still closely watching the overall number of homes for sale, which remains well below a year ago. Continued growth in homes listed for sale will play a key role in the overall health of the summer market.”
The May 2017 sales total of 10,704 represents an increase of 4.6 percent from the May 2016 total of 10,235.
The May 2017 statewide median sales price was $239,000, an increase of 7.1 percent from the May 2016 median of $223,200.
May 2017 pending sales increased by 8.2 percent from a year ago to reach 14,710.
The months supply of homes for sale dropped 18.7 percent at the end of May to 6.1 months supply. It was at 7.5 months at the end of May 2016. A 6 month to 6.5 month supply is considered to be a balanced market. Inventory stood at 68,819, a decrease of 16.4 percent compared to May 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 53,000 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]
New York State’s REALTORS applaud NYS Legislature’s passage of nation-leading NY First Home bill
Albany – June 20, 2017 – The following is a statement by New York State Association of REALTORS® President Dawn M. Carpenter:
“The New York State Association of REALTORS® (NYSAR) and its 55,000 REALTORS® applaud the members of the New York State Legislature for taking action to help more New Yorkers achieve the American Dream of homeownership in communities across the Empire State.
Every day REALTORS® work with aspiring first-time homebuyers who can afford the monthly mortgage payment, but struggle to save enough for the upfront down payment and closing costs. NY First Home will help families and individuals overcome these barriers to homeownership. Under the program, New Yorkers can save for the down payment and closing costs of their first-home purchase while receiving a tax deduction of up to $5,000 per year ($10,000 for couples) based on those savings.
NY First Home will make homeownership more easily attainable by helping New Yorkers bridge the gap between where their savings are and where they need to be to receive the keys to their first home. This program will encourage our young people to plant their roots here, which will help our state stem the tide of population loss. It’s also a fiscal win for New York State as an independent analysis shows additional home sales would generate $5 for every dollar the state invests in the program.
NY First Home expands on Gov. Andrew Cuomo’s focus on growing our state’s economy, and New York’s REALTORS® look forward to partnering with him to make this nation-leading program a reality.
Editor’s Note: More information about the NY First Home proposal can be found at www.nyfirsthome.com.
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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Fed votes to raise key interest rate again
This week, the Federal Reserve took a largely expected move to raise its key interest rate one-quarter percentage point. This marks the second of three hikes that is expected to occur this year.
While mortgage rates aren’t directly tied to the Fed’s key interest rate, rates are still influenced by the movement. Mortgage rates are predicted to start rising, and many homeowners and prospective homeowners are already bracing for the uptick.
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Builder confidence dips slightly in June
Builder confidence in the market for newly-built single-family homes weakened slightly in June, down two points to a level of 67 from a downwardly revised May reading of 69 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).
The Northeast dropped two points to 46 in June.
“Builder confidence levels have remained consistently sound this year, reflecting the ongoing gradual recovery of the housing market,” said NAHB Chairman Granger MacDonald.
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New study names root causes for depressed homeownership rate in U.S.
Despite steadily improving local job markets and historically low mortgage rates, the U.S. homeownership rate is stuck near a 50-year low because of a perverse mix of affordability challenges, student loan debt, tight credit conditions and housing supply shortages. That’s according to findings in a new white paper released in recognition of National Homeownership Month at the National Association of REALTORS Sustainable Homeownership Conference.
Five main barriers that have prevented a significant number of households from purchasing a home include: post-foreclosure stress disorder; mortgage availability; the growing burden of student loan debt; single-family housing affordability; and single-family household supply shortages.
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More Americans think selling is a good idea
The percentage of Americans who reported now is a good time to sell zoomed to a record high in May, according to Fannie Mae’s latest Home Purchase Sentiment Index. Meanwhile, the net share of Americans who say now is a good time to buy fell 8 percentage points and reached a record low last month.
“High home prices have led many consumers to give us the first clear indication we’ve seen in the National Housing Survey’s seven-year history that they think it’s now a seller’s market,” says Doug Duncan, Fannie Mae’s chief economist. “However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market, perhaps due in part to concerns over finding an affordable replacement home. Prospective homebuyers are likely to face continued home price increases as long as housing supply remains tight.”
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Americans place high priority on ownership
More than two-thirds of Americans believe that owning a home is an essential part of the American Dream, according to a new survey released by the National Association of Home Builders. Other recent surveys also have shown a high desire for homeownership, despite the homeownership rate remaining stalled near a historical low of 64 percent. About 80 percent of millennials recently surveyed by rental website Apartment List say they hope to one day buy a home.
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June is NYSAR Housing Opportunities Month!
In honor of June being NYSAR® Housing Opportunities Month, and in an effort to raise awareness for housing opportunities in New York State, the NYSAR® Housing Opportunities Foundation has made a goal of raising $5,000, which goes directly to the First-time Homebuyer Grant Program.
Donate today to be a part of this effort! Make sure to visit our website frequently to see donor names prominently displayed on the Foundation homepage.
All contributions are tax-deductible and help the foundation award first-time homebuyer grants to low-to-moderate income applicants working with a REALTOR® to use toward their down payment and closing costs. Everyone who makes a donation in the month of June will be entered into a drawing for a $50 American Express gift card. Please encourage others to help and show support for the foundation and the consumers it helps to achieve the American Dream of homeownership.
