Tag Archives: Housing Supply

In September, when existing home sales rose 10 percent, the National Association of Realtors (NAR) released a statement declaring the numbers meant a sales recovery had begun. One short month later, and after only two months of gains, sales have slumped 2.2 percent to a 4.43 million annual rate - which was even lower than economists had predicted. Also down was the median price of existing homes sold. Analysts agree that the recent foreclosure freezes likely disrupted a number of pending sales.

According to the Texas Quarterly Housing Report released earlier this month, real estate sales in the Lone Star State decreased 20 percent in the third quarter of 2010 compared to a year earlier, but were essentially flat year-to-date. The Texas Association of Realtors attributes the statistics to an early peak in the market due to the federal homebuyer tax credits. The median home price in Texas remained virtually unchanged at $152,000.

Inventories of homes listed for sale are dwindling across the country, in some markets, significantly, according to Altos Research. Of the 26 major markets the company tracks, only three showed increases in inventory during the month of October - Las Vegas, Phoenix, and San Diego - and Altos described their increases as ""slight."" Washington, D.C. had the biggest decline in its supply of listed homes. While, typically, decreases in inventory are evidence of a leveling off, Altos says the potential impact of the so-called shadow inventory looms large.

Residential property values fell 0.2 percent at the national level during the third quarter, according to Integrated Asset Services (IAS). In front of a seasonal slow-down in home sales, IAS says the data foreshadow ""particularly difficult times ahead"" for the housing market and for the U.S. economy. The company's report confirms that the nation's most devastated counties are showing no signs of bottoming. The robo-signing controversy is expected to slow the housing correction even further as banks hold back foreclosures.

Mortgage rates are still incredibly low by historical standards. They've been fluctuating around record lows not seen in more than a half-century for a good many months now. This week was one where that movement was upward, according to industry data released Thursday. A nationwide survey conducted by Freddie Mac found that 30-year fixed-rate mortgages rose to 4.23 percent, while 15-year rates edged up to 3.66 percent. Bankrate reports that the larger jumbo 30-year fixed rate reversed last week's decline, returning to 5.10 percent.

Sales of previously owned homes rose in September for the second straight month. The National Association of Realtors (NAR) on Monday reported a 10 percent jump. The month-to-month gain was more than analysts were expecting, and NAR says the latest numbers ""affirm a sales recovery has begun."" Some market observers, though, suggest such an assertion is premature. The median sales price of existing homes dropped 2.4 percent in September. Distressed homes accounted for 35 percent of the month's transactions.

According to RE/MAX's monthly report, the housing market is attempting to return to traditional seasonal trends after a slow summer following the spring rush to qualify for the government's homebuyer tax credit. September sales were 6.4 percent below those in August and 20.6 percent below sales in September 2009, but RE/MAX officials say they are encouraged by reports of signed contracts in the field, which should translate into increased home sales in the months ahead.

According to recently released reports from the Nevada Title Company, the closing price for homes in Las Vegas Valley was $135,000 in September, down $5,000 from the closing price in August and down $3,000 from September 2009. Last month, 984 REO homes and 734 short sales were closed, making up 40 percent and 31 percent of all closings in the Valley, respectively. The latest figures from Nevada Title suggest that REO inventory, although high, may begin to steady in coming months.

Sales figures for previously owned homes rose in August following a big correction in July, according to data released by the National Association of Realtors (NAR) Thursday. The trade group's existing-home sales report showed a 7.6 percent increase in transactions during the month, bumping the annualized sales pace to 4.13 million homes and reducing for-sale inventory to an 11.6-months supply. The sales share of distressed homes rose to 34 percent last month. Analysts say the results are in line with expectations but disappointing, nonetheless.

HUD released a new survey of New Orleans area housing conditions this week. The agency says its the most comprehensive analysis of the metro's housing stock since the department's last assessment in 2004 (prior to Hurricane Katrina). In the five years since Hurricane Katrina struck the area, the New Orleans metro lost 75,000 housing units, nearly 13 percent of its housing stock, and the median monthly cost of housing rose by nearly 33 percent from $662 in 2004 to $882 in 2009.