NAR: Pending home sales scale back 1.3 percent in April
Pending home sales in April slumped for the second consecutive month and were down year-over-year nationally and in all four major regions, according to the National Association of REALTORS’ Pending Home Sales Index, a forward-looking indicator based on contract signings.
In the Northeast, pending homes sales decreased 1.7 percent to 97.2 in April, and are now 0.6 percent below a year ago.
Nationwide, pending home sales fell 1.3 percent to 109.8, 3.3 percent below a year ago.
To read the entire NAR press release, click here.
Buyer demand drives median price growth as fewer homes available for sale in New York State
Albany, NY – May 25, 2017 – Strong buyer demand, coupled with the ongoing decline in the number of homes for sale, fueled a 7.8 percent increase in the April statewide median sales price, according to the housing market report released today by the New York State Association of REALTORS. Inventory constraints also led to a 5 percent decline in home sales for the month compared to April 2016.
“As anticipated, the continued decline in the number of homes currently on the market has slowed the sales pace as many buyers are challenged to find an available home that meets their needs,” said Duncan R. MacKenzie, CEO of the New York State Association of REALTORS. “REALTORS are reporting that buyer demand remains strong and newly listed homes are selling quickly. Basic economics are at play with high demand and low inventory driving selling prices higher.”
“As we enter the typically busy summer months, the housing market holds great opportunity for sellers as we expect strong buyer demand to continue,” said MacKenzie. “Without the return of sellers to the market, home sales will likely be constrained during the summer of 2017.”
The April 2017 sales total of 8,495 represents a decrease of 5 percent from the April 2016 record total of 8,944.
The April 2017 statewide median sales price was $235,000, an increase of 7.8 percent from the April 2016 median of $218,000.
April 2017 pending sales declined 4 percent from a year ago to reach 12,760.
The months supply of homes for sale dropped 21.6 percent at the end of April to 5.8 months supply. It was at 7.4 months at the end of April 2016. A 6 month to 6.5 month supply is considered to be a balanced market. Inventory stood at 65,187, a decrease of 18.3 percent compared to April 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]
Renters admit they favor homeownership
Seventy-two percent of renters “prefer” or “strongly prefer” to own a home rather than rent one, according to the latest SCE Housing Survey conducted by the Federal Reserve Bank of New York. Nearly 56 percent of renters view homeownership as a “good investment,” the survey finds.
The majority of renters favor homeownership, despite expressing concerns about their ability to one day afford a home. However, they do believe it’s getting easier to qualify for a mortgage. Sixty-five percent of renters say qualifying for a mortgage is “somewhat difficult” or “very difficult,” but that is gradually declining. Twenty percent of renters view qualifying for a mortgage as “somewhat easy” or “very easy,” which is up from 15 percent in 2015.
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Survey shows rising rates won’t stop young buyers
According to the latest Berkshire Hathaway HomeServices quarterly Homeowner Sentiment Survey, consumers are optimistic about both the U.S. economy and the real estate market. Sixty-eight percent of prospective homeowners aged 18-34 say they are experiencing a sense of urgency to buy a home before mortgage rates rise, and one in five say they have a desire to by now.
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REALTORS Speak Out Against Federal Tax Proposals Harmful to New Yorkers; Urge Support for New York First Home
NYSAR Releases Fact Sheet Outlining Potential Risks for New York Homeowners
Celebrates Over 8,000 Calls, Letters & Signatures to Urge Support for NY First Home
ALBANY, NY – The New York State Association of REALTORS (NYSAR) today gathered in Albany for its annual Lobby Day to raise awareness about dangerous proposals included in President Donald Trump’s federal tax plan and meet with legislative leaders to promote the NY First Home, a proposal that would allow individuals to deposit up to $5,000 a year ($10,000 a year for couples) into a first home savings account, which would be tax deductible for state income tax purposes.
NYSAR outlined specific concerns about President Trump’s tax reform proposals that would eliminate the deduction of state and local taxes, including property taxes, and diminish the value of the Mortgage Interest Deduction.
“We support efforts to reform the federal tax code to create a more simplified and fair system, but eliminating the deduction of state and local taxes, including property taxes, will only serve to hurt New Yorkers disproportionately compared to other states,” said Dawn Carpenter, president of NYSAR.
According to the National Association of REALTORS American Community Survey and Research Division, New York taxpayers would experience a significant loss in savings if federal tax reform eliminated state and local tax deductions, and many homeowners would lose equity in their homes, a fundamental source of family wealth.
In 2013, New York State taxpayers saved an average of $2,050 on their income taxes due to real estate tax deductions. Approximately 2.4 million New York taxpayers claimed a deduction for real estate taxes totaling more than $19.7 billion in deductions.
“The White House proposal would end the tax benefit of owning a home for 95 percent of American families and increase taxes for millions of New Yorkers. We urge members of our Congressional delegation to reject proposals that threaten New York’s economy and hurt working families,” added Carpenter.
Click here for the complete fact sheet and click here for an infographic outlining the negative impacts of President Trump’s tax reform proposals.
During its lobby day, NYSAR also urged lawmakers to support the NY First Home proposal, S.4058-Little/A.5616-Ramos. NY First Home is modeled after New York’s 529 College Savings Program and would allow New Yorkers to deposit up to $5,000 a year ($10,000 a year for couples) into a first home savings account, which would be tax deductible for state income tax purposes.
If passed, New Yorkers would be able to apply the savings and any interest earned towards the purchase of a first home in New York State.
“It isn’t the monthly mortgage payment that is preventing New Yorkers from achieving the American Dream of homeownership, it is the ability to save for the down payment and our closing costs, which are perennially among the highest in the nation,” said Duncan R. MacKenzie, NYSAR CEO. “This is leading to an exodus from our state as our young families and individuals leave to buy homes in more affordable locations,” he said, adding that recent studies have shown that New York is facing a population loss and is ranked as the third worst state for first-time homebuyers.
“It’s important that New York take action to reverse these trends. NY First Home is a responsible and much-needed initiative that can encourage thousands of New Yorkers to remain in New York and help those who are struggling to save for a first home. It’s why the proposal continues to receive strong support from New Yorkers and their state representatives,” added MacKenzie.
The proposal, which passed the New York State Senate unanimously in 2016, was included among this year’s budget priorities as stated by the Senate majority conference and the Independent Democratic Conference or IDC.
The NY First Home proposal is also supported by more than half of the Assembly Majority conference with 57 members signing on as co-sponsors of the bill.
Results from a Homeownership Poll conducted by the Siena Research Institute (SRI) show that 84 percent of New York voters support the NY First Home proposal. Support for the program was bi-partisan and spread across the entire state.
MacKenzie stated, “It’s clear that New Yorkers want to see NY First Home become a reality, and I join them in asking the governor and legislature to make this proposal a priority.”
Since the launch of the NY First Home campaign, New Yorkers have shown their support for the proposal by submitting more than 8,000 calls, letters and signatures to state representatives. Public support for the measure has generated strong bi-partisan backing for the legislation in the New York State Legislature and has been identified as a budget priority. This year’s progress follows the unanimous support the legislation found in the New York Senate in 2016.
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Media Contact:
Salvatore I. Prividera Jr.
Director of Communications
518-463-0300 x208 office
[email protected]
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®. To learn more visit, nyfirsthome.com and nysar.com.
Big expectations for home sales through 2018
More homes are predicted to be sold this year than in more than a decade. In 2017, the number of existing-home sales is expected to increase about 3.5 percent to 5.64 million. By 2018, existing-home sales will likely rise another 2.8 percent to 5.8 million, according to forecasts by the National Association of REALTORS.
The rise in new jobs, pent-up household formation, and increasing consumer confidence are helping to propel the housing market forward, says Lawrence Yun, NAR’s chief economist.
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Builder confidence continues on upward trend
In a further sign that the housing market continues to strengthen, builder confidence in the market for newly-built single-family homes rose two points in May to a level of 70 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). This is the second highest HMI reading since the downturn.
The Northeast saw a three-point gain to 49.
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Housing starts plunge in Northeast
A pullback in the multifamily sector is taking the blame for a drop in housing starts last month. The U.S. Commerce Department reported that housing starts for single-family and multifamily homes dropped 2.6 percent to a seasonally adjusted annual rate of 1.17 million units in April.
In the Northeast, housing starts plunged 29.2 percent.
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RealtyTrac: Foreclosure filings down in April
In its U.S. Foreclosure Market Report for April 2017, which reports default notices, scheduled auctions and bank repossessions, RealtyTrac Inc. reported New York had 4,678 total foreclosures in April, down 13.18 percent from March 2017 and down 13.05 percent from April 2016. One in every 1,747 housing units in New York State received a foreclosure filing.
Nationally, foreclosure filings were reported on 77,409 U.S. properties in April, down 6.9 percent from the previous month and down 23.31 percent from the same time last year. One in every 1,723 U.S. housing units received a foreclosure filing.
To read the entire RealtyTrac press release, click here.
For more statistics and trends from RealtyTrac, click here.
NAR reports jump in REALTOR business activity in 2016
After a slip in business in 2015, the National Association of REALTORS (NAR) Member Profile found that the income and sales volume of REALTOR members increased in 2016. The median gross income of REALTORS increased 8 percent in 2016 as the typical member had the highest number of transactions in recent years. Despite inventory shortages, transactions grew to 12 per agent, the highest since 2014.
The median sales volume for REALTORS also grew from $1.8 million in 2015 to $1.9 million in 2016. Median income increased too, from $39,200 in 2015 to $42,500 in 2016.
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Homebuyers fuel mortgage volume rise
Mortgage volume is starting to rise again, and homebuyers are fueling the increase. Total mortgage application volume, including for refinancings and home purchases, rose 2.4 percent last week on a seasonally adjusted basis, according the Mortgage Bankers Association.
Homebuyers are seemingly undeterred by higher home prices and the limited number of homes for sale. Mortgage applications to buy a home increased 2 percent last week, and are now 6 percent higher than a year ago.
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Buyers grow more confident about housing
Fannie Mae’s Home Purchase Sentiment Index rose 2.2 percentage points in April, with five of six components rising that measure confidence in buying, employment, household incomes, financing, and more. The share of Americans who say now is a good time to buy rose 5 percentage points in April, while the net share of those saying now is a good time to sell fell 5 percentage points.
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