NAR: Existing-home sales jump in January

Existing-home sales stepped out to a fast start in 2017, surpassing a recent cyclical high and increasing in January to the fastest pace in almost a decade, according to the National Association of REALTORS (NAR).

Total existing-home sales expanded 3.3 percent to a seasonally adjusted annual rate of 5.69 million in January. January’s sales pace is 3.8 percent higher than a year ago and surpasses November 2016 as the strongest since February 2007.

January existing-home sales in the Northeast jumped 5.3 percent to an annual rate of 800,000, and are now 6.7 percent above a year ago.

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Stable growth expected for commercial real estate in 2017

Steered ahead by strengthening demand in smaller markets, the commercial real estate sector should remain on stable ground in 2017 and offer decent returns for investors, according to the latest National Association of REALTORS (NAR) quarterly commercial real estate forecast.

National office vacancy rates are forecast by Realtors® to retreat 1.1 percent to 12.1 percent over the coming year as job growth in business and professional services brings increased need for office space. The vacancy rate for industrial space is expected to decline 1.3 percent to 7.1 percent, and retail availability to decrease 0.7 percent to 11.2 percent. Only the multifamily sector is predicted to have little change to its vacancy rate over the next year as new apartment completions keep openings mostly flat at 6.5 percent.

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Empire State home sales set January record

Albany, NY – Feb. 22, 2017 – The home sales growth trend continued in New York State during January with the 8,472 closed sales setting a new high-water mark for the month, according to the housing market report released today by the New York State Association of REALTORS. The January statewide median sales price of $250,000 represents an increase of 8.7 percent from a year ago.

“Homebuyer demand remained strong at the start of the New Year, continuing the four-year sales growth trend and driving January sales to a new record level,” said Duncan R. MacKenzie, CEO of the New York State Association of REALTORS. “Historically, home sales are slower during the winter months. We believe the combination of rising mortgage rates and the continued decline in the number of homes available has caused buyers to remain actively engaged in the market and ready to make offers when they find the home that meets their needs.”

“For sellers, it continues to be a good time to list their homes,” said MacKenzie. “Selling prices are continuing to grow and competition remains low in many areas. During January, sellers received 96.3 percent of their asking price at closing. We anticipate these trends to continue as the inventory of homes for sale hovers around the five-month supply level.”

The January 2017 sales total of 8,472, represents an increase of 4.1 percent from the January 2016 total of 8,142.

The January 2017 statewide median sales price was $250,000, an increase of 8.7 percent from the January 2016 median of $230,000.

January 2017 pending sales increased by 8.5 percent from a year ago to reach 8,513.

The months supply of homes for sale dropped 26.4 percent at the end of January to 5.3 months supply. It was at 7.2 months at the end of January 2016. A 6 month to 6.5 month supply is considered to be a balanced market. Inventory stood at 59,771, a decrease of 19.3 percent compared to January 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]

Builder confidence continues to settle back to sustainable levels in February

Builder confidence in the market for newly-built single-family homes declined two points in February to a level of 65 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

The Northeast fell two points to 50, according to the index.

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Three New York State housing markets top affordability charts

Buffalo-Cheektowaga-Niagara Falls, NY and Syracuse, NY both ranked in the top five affordable major housing markets in the country according to the most recent National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI). Binghamton, NY ranked in the top smaller housing markets.

According to the index, shortages of buildable lots and skilled labor, along with excessive regulations, rising mortgage interest rates and ongoing home price appreciation pushed housing affordability in the fourth quarter of 2016 to its lowest point since the third quarter of 2008.

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Consumers more optimistic about housing

More Americans are showing optimism toward their personal finances and the housing market, a reversal to a five-month decline. In particular, Americans are more upbeat about home prices, home selling, their rising household incomes, and they’re less scared about losing their jobs, according to Fannie Mae’s Home Purchase Sentiment Index, a survey of 1,000 Americans in January about their attitudes toward housing.

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HUD reversal softens loan demand

This last week’s plunge in mortgage applications was at least partially triggered by a large drop in government-insured loans. Overall applications for FHA loans dove 13 percent last week, after the Trump administration’s first housing policy move. The Department of Housing and Urban Development suspended the reduction in Federal Housing Administration mortgage insurance premiums set to take effect Jan. 27.

The quarter-percentage point reduction in premiums would have decreased monthly payments for thousands of new, low-income borrowers. The plan to reduce premiums was first announced on Jan. 9, just days before the Obama administration left office. FHA applications spiked immediately upon the announcement.

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New York State housing market sets sales record in 2016

Albany – Jan. 31, 2017 – Rising 10-percent above last year’s housing market, closed sales of residential properties set a new high-water mark of 130,486 in New York State during 2016, according to the annual housing market report released today by the New York State Association of REALTORS. The statewide median sales price also grew by 2.2 percent in 2016 to reach $235,000.

“Strong demand, low mortgage rates and a rising economy drove the New York State housing market to a new annual sales record following its fourth consecutive year of year-over-year growth,” said Duncan R. MacKenzie, CEO of the New York State Association of REALTORS. “While the numbers naturally lead to comparisons with the mid-2000s housing boom, this growth cycle is built on the foundation of responsible lending that will enable thousands of families to enjoy their new homes for many years to come.”

“Looking ahead to 2017, homebuyers are expected to be active throughout the winter as they seek to make purchases before any additional mortgage rate increases,” said MacKenzie. “However, these increasing mortgage rates and the continuing decline in the number of homes available for sale could provide significant headwinds to market growth as we move through the year. For sellers, now is a great time to list your home with a REALTOR to enjoy the benefits of limited competition in the marketplace.”

There were 130,486 existing single-family homes sold in 2016, an increase of 10 percent from the 118,602 sold in 2015. There were 33,713 sales of existing single-family homes in the 2016 fourth quarter, an increase of 3.5 percent from 32,573 sales in the 2015 fourth quarter. The 11,146 sales in December 2016 represented an increase of 2.5 percent from December 2015.

The 2016 statewide annual median sales price was $235,000, up 2.2 percent from the $230,000 median in 2015. The fourth quarter 2016 median was $235,000, an increase of 3.1 percent from the fourth quarter 2015 median of $227,900. The December 2016 median sales price was $240,000, an increase of 1.3 percent from the December 2015 median of $237,037.

The months supply of inventory dropped 27 percent at year’s end to a 5.4 months supply. It stood at 7.4 months at the end of 2015. A 6 month to 6.5 month supply is considered to be a balanced market. Inventory stood at 60,869 units at the end of 2016, a decrease of 20.5 percent compared to the end of 2015.

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 now include townhomes and condominiums in addition to existing single-family homes.

The New York State Association of REALTORS is a not-for-profit trade organization representing more than 52,000 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: 2016 marked best year for sales in a decade

Existing-home sales finished out 2016 as the best year since the housing boom days, according to the National Association of REALTORS (NAR). Total existing-home sales – which are completed transactions that include single-family homes, townhomes, condos, and co-ops – closed 2016 at 5.45 million sales, surpassing 2015 (5.25 million). It was the highest total for existing-home sales since 2006 (6.48 million).

“Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market,” says Lawrence Yun, NAR’s chief economist.

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New Yorkers call on Governor Cuomo and Legislature to assist first-time homebuyers

Albany, NY –January 24, 2017 – According to results from a Homeownership Poll conducted by the Siena Research Institute (SRI), 84 percent of New York voters supported the NY First Home proposal that would create a tax-free savings account to help New Yorkers save for a first home. Support for the program was bi-partisan and spread across the entire state.

Specifically, the NY First Home proposal would allow individuals to deposit up to $5,000 per year ($10,000 per year for married couples) into a first home savings account, which would be tax deductible for state income tax purposes. The total principal savings and any interest accrued could then be used towards qualified costs associated with the purchase or construction of a first home in New York State, such as down-payment and other closing costs.

“NY First Home is a responsible and much-needed initiative that would help thousands of New Yorkers who are struggling to save for a first home,” said Dawn Carpenter, president of the New York State Association of REALTORS (NYSAR). “The poll results show that our state’s residents understand what we as REALTORS see on a daily basis. The monthly mortgage payment is not what is keeping first-time homebuyers from achieving the American Dream. It’s saving for the down-payment and closing costs.”

“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,” said Carpenter. “We would like to see it included in this year’s state budget negotiations.”

The SRI poll, conducted in December 2016, showed universal support for the NY First Home proposal that stretched across all demographics, geography and political ideology. African Americans were most likely to support the NY First Home proposal (89%). An overwhelming 92 percent of respondents between the ages 18-34 supported NY First Home, and almost as most in the 35-54 age bracket gave their support (87%). Self-identified Conservative and Liberal respondents also shared a common level of support for the proposal (89% of Liberals and 79% of Conservatives).

NYSAR has focused on the issue of the declining rate of first-time homebuyers in New York State, and has been working to enact NY First Home. The proposal was passed unanimously in the New York State Senate last June. More information on NY First Home can be found at nyfirsthome.com, on Facebook at REALTORS for a Better New York and on Twitter at @NYSAR_GA.

Salvatore I. Prividera Jr.
Director of Communications
518-463-0300×208 office
[email protected]

U.S. Commerce Department: Northeast housing starts increase in December

Privately-owned housing starts in December rose 18.5 percent in the Northeast to 96,000, according to data released by the U.S. Commerce Department. November’s total was 81,000.

Nationally, housing starts were at a seasonally adjusted annual rate of 1,226,000, an 11.3-percent increase from the revised November total of 1,102,000.

Building permits for the Northeast rose 2.7 percent in December to 113,000, while nationally, building permits fell 0.2 percent to 1,210,000.

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Builder confidence holds firm in January

Builder confidence in the market for newly-built single-family homes remained on firm ground in January, down two points to a level of 67 from a downwardly revised December reading of 69 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

Looking at the three-month moving averages for regional HMI scores, the Northeast rose two points to 52.

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