NAR: Contract signings jump to near decade high
Pending home sales posted a strong rebound in February, soaring to the highest level in nearly a year and the second highest level in more than a decade, according to the National Association of REALTORS’ Pending Home Sales Index, a forward-looking indicator based on contract signings.
In the Northeast, pending home sales increased 3.4 percent to a reading of 102.1 in February, and are now 6.6 percent higher than a year ago.
Nationwide, pending home sales rose 5.5 percent month-over-month to a 112.3 reading, 2.6 percent higher than a year ago.
To read the entire NAR press release, click here.
U.S. Commerce Department: New home sales fall in February for Northeast, rise nationally
Sales of new single-family homes in the Northeast in February fell 21.4 percent to 33,000, according to the U.S. Commerce Department. January’s revised annual rate was 42,000.
Nationally, new home sales were at a seasonally adjusted annual rate of 592,000, 6.1 percent above the revised January rate of 558,000. This is 12.8 percent above the February 2016 total of 525,000.
To read the entire U.S. Commerce Department press release, click here.
NAR: Existing-home sales stumble in February
After starting the year at the fastest pace in almost a decade, existing-home sales slid in February but remained above year-ago levels both nationally and in all major regions, according to the National Association of REALTORS (NAR).
Total existing-home sales retreated 3.7 percent to a seasonally adjusted annual rate of 5.48 million in February from 5.69 million in January. Despite last month’s decline, February’s sales pace is still 5.4 percent above a year ago.
February existing-home sales in the Northeast slumped 13.8 percent to an annual rate of 690,000, but are still 1.5 percent above a year ago. The median price in the Northeast was $250,000, which is 4.1 percent above February 2016.
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NYS home sales reach second highest February total
Albany, NY – March 22, 2017 – Winter 2017 home sales remained strong during February with the 7,391 closings representing the second highest total for the month, according to the housing market report released today by the New York State Association of REALTORS. The February statewide median sales price of $242,000 represents an increase of 4.3 percent from a year ago.
“It’s been a very strong start to 2017, reminiscent of the first months of 2016’s record-setting run,” said Duncan R. MacKenzie, CEO of the New York State Association of REALTORS. “With one eye on rising mortgage rates and the other on a declining selection of homes, it appears that buyers are jumping at the opportunity to make an offer when they find the right property.”
“We continue to monitor the ongoing decline in homes listed for sale,” MacKenzie said. “In February, both the number of homes for sale and the number of new listings declined. As we move closer to the typically active spring and summer months, low inventory may apply a braking action to an otherwise strong housing market.”
The February 2017 sales total of 7,391 represents a decrease of 6.7 percent from the February 2016 record total of 7,925.
The February 2017 statewide median sales price was $242,000, an increase of 4.3 percent from the February 2016 median of $232,000.
February 2017 pending sales increased by 3 percent from a year ago to reach 9,410.
The months supply of homes for sale dropped 23.9 percent at the end of February to 5.4 months supply. It was at 7.1 months at the end of February 2016. A 6 month to 6.5 month supply is considered to be a balanced market. Inventory stood at 60,570, a decrease of 18.8 percent compared to February 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]
Closing times are speeding up
Closing times were way down in February, falling from 51 days in January to 46 days for all loans last month, according to the latest Ellie Mae Origination Insight Report.
Broken out, home purchase loans took an average of 45 days to close in February, down from 48 days in January. Refinanced loans took an average of 47 days to close in February, down from 53 days.
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Economic confidence may be housing’s buoy
Consumers are getting more confident about the economy and their finances, and that could bode well for the real estate market, according to the National Association of REALTORS’ latest Housing Opportunities and Market Experience (HOME) survey. The share of households who say the economy is improving surged to its highest share in the survey’s five-quarter history, reaching 62 percent (up from 48 percent a year ago).
Households are also feeling more confident about their finances. Respondents in the HOME survey reported confidence that their financial outlook will improve over the next six months. Financial confidence is at the highest levels in the survey’s history (reaching 62.6 on the index in March, up from a 58.1 reading a year ago).
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U.S. Commerce Department: Northeast housing starts and building permits fall in February
Privately-owned housing starts in February fell 9.8 percent in the Northeast to 119,000, according to data released by the U.S. Commerce Department. January’s total was 132,000.
Nationally, housing starts were at a seasonally adjusted annual rate of 1,288,000, a 3-percent increase from the revised January total of 1,251,000.
Building permits for the Northeast also fell, dropping 22.3 percent to 115,000, while nationally, building permits fell 6.2 percent to 1,213,000.
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Builder confidence hits 12-year high
Builder confidence in the market for newly-built single-family homes jumped six points to a level of 71 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). This is the highest reading since June 2005.
In the Northeast, the index fell one point to 48.
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Borrowers lock in loans as rates surge
Mortgage interest rates climbed to their highest level since 2014 last week, and customers are rushing to lock in rates before any further increases, according to the Mortgage Bankers Association. The average on a 30-year fixed-rate mortgage rose to 4.46 percent, up from 4.36 percent the week prior.
Total mortgage application volume, including both home purchases and refinancings, increased 3.1 percent last week from the previous week on a seasonally adjusted basis, the MBA says.
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How rising rates will impact home prices
Housing’s share of the economy rose above normal levels from November to January, despite mortgage rates surging 60 basis points at the time. Economists caution that there may be a lag to the impact of rising rates and particularly their effect on home prices. In an analysis, Goldman Sachs economists found that the median home price often drops 3 to 4 percent.
That said, buyer demand is much stronger than supply at the moment and the economy and job growth are continuing to support the housing market. Many economists are skeptical whether mortgage rates will actually rise much more than they already have. A survey conducted by MarketWatch in December 2016 showed an average for rates of 4.5 percent throughout 2017, a 35 basis point increase from current readings.
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Millennials flood FHA loan market
Millennials are becoming a powerhouse in the real estate market, accounting for 84 percent of closed loans in January. And they’re increasingly turning to Federal Housing Administration loans, those that offer low down payment options, to achieve homeownership. In January, 35 percent of millennials used an FHA loan, according to Ellie Mae’s Millennial Tracker.
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U.S. Commerce Department: New home sales rise in January for Northeast
Sales of new single-family homes in the Northeast in January rose 15.8 percent to 44,000, according to the U.S. Commerce Department. December’s revised annual rate was 38,000.
Nationally, new home sales were at a seasonally adjusted annual rate of 555,000, 3.7 percent above the revised December rate of 535,000. This is 25.4 percent above the January 2016 estimate of 526,000.
To read the entire U.S. Commerce Department press release, click here.
