going in the right direction...
from propertycommunity.com
Home sales in the United States are at their highest level since 2009 and are
set to remain high as the number of new properties coming on the market is
limited, according to real estate agents. The latest data from the National
Association of Realtors shows that completed transactions of existing homes rose
4.2% to a seasonally adjusted annual rate of 5.18 million last month which is
12.9% above a year ago.
Prices have been growing steadily with data showing that the national media
existing home price for all housing types was $208,000 in May, up 15.4% from the
same month last year, and the sixth straight month of double digit price growth.
It is also the strongest price gain since October 2005, when a 16.6% jump was
recorded from a year earlier. The last time there were 15 consecutive months of
year on year price increases was from March 2005 to May 2006.
NAR chief economist Lawrence Yun believes that the real estate recovery is
strengthening and he does not expect the housing supplies to increase this year.
‘The housing numbers are overwhelmingly positive. However, the number of
available homes is unlikely to grow, despite a nice gain in May, unless new home
construction ramps up quickly by an additional 50%,’ he explained. ‘The home
price growth is too fast, and only additional supply from new home building can
moderate future price growth,’ he added.
Total housing inventory at the end of May rose 3.3% to 2.22 million existing
homes available for sale, which represents a 5.1 month supply at the current
sales pace, down from 5.2 months in April. Listed inventory is 10.1% below a
year ago, when there was a 6.5 month supply. Market conditions today are vastly
different than during the housing boom, according to NAR president Gary Thomas.
‘The boom period was marked by easy credit and overbuilding, but today we have
tight mortgage credit and widespread shortages of homes for sale,’ he pointed
out.
The issue now is pent up demand and strong growth in the number of households,
with buyer traffic 29% above a year ago, coinciding with several years of
inadequate housing construction. These conditions are contributing to
sustainable price growth,’ he added.
The time it takes to sell a property is falling. The median time on market
for all homes was 41 days in May, down from 46 days in April, and is 43% faster
than the 72 days on market in May 2012. The NAR
data shows that 45% of all homes sold in May were on the market for less
than a month. The median time on the market is the shortest since monthly
tracking began in May 2011. On an annual basis, a separate NAR survey of home
buyers and sellers shows the shortest selling time was four weeks in both 2004
and 2005.
There is regional variation in both sales and prices. Existing home sales in
the Northeast increased by 1.6% in May and are 8.3% above a year ago. The median
price in the Northeast was $269,600, up 12.3% from a year ago. Existing home
sales in the Midwest jumped 8% in May and are 16.3% higher than a year ago. The
median price in the Midwest was $159,800, up 8.2% from May 2012. In the South,
existing home sales rose 4% in May and are 16.1% above May 2012. The median
price in the South was $183,300, which is 15% above a year ago. Existing home
sales in the West increased 2.5% in May and are 7% above a year ago. With the
tightest regional supply, the median price in the West was $276,400, up 19.9%
from May 2012.
Wednesday, July 24, 2013
Metro Denver Apartment Vacancies Fall to a 13 Year Low
interesting Denver Post article
The apartment vacancy rate in metro Denver area fell to 4.2 percent during the second quarter of 2013, reaching the lowest vacancy rate recorded since the third quarter of 2000.
At the same time, the average rent for all apartment types in metro Denver rose to $1,022, increasing 4.3 percent from the previous year, according to a report released Wednesday by the Apartment Association of Metro Denver and the Colorado Division of Housing.
Average rent for a two-bedroom, one-bathroom apartment climbed to $952.66.
"It is really tight," Jim Lorenzen, president of Cornerstone Apartment Services, said of the market for renters. "As of today, we have 22 rent-ready apartments out of 2,100."
Rocky Sundling, immediate past president of the Apartment Association of Denver and regional manager of Greystar Real Estate Partners, said demand for rental units is coming from the influx of people moving to the metro area and job growth from a recovering economy.
Sundling said that on the supply side, there are a large number of apartments in the construction pipeline - between 12,000 and 15,000 which will be delivered in the next two years.
"Although it is coming, it is not here yet," said Sundling. "So you factor increasing demand with a constrained supply - that's leading to the increased rents."
Sundling said that although the rental market is "very healthy" with rents increasing and vacancies decreasing, there should be a noticeable moderation in the next couple of years.
Some of the factors that will lead to the moderation are the new apartments and the fact that rents are increasing faster than wages - a situation that can't be sustained.
Lorenzen of Cornerstone Apartment Services, said he has already seen "a little bit of flattening" in the company's ability to raise rents.
"Part of that is driven by the market in general, but part of it is that incomes have not kept pace," said Lorenzen.
"We meet every morning and discuss our availability, discuss our leasing activity for the prior day. If we can increase rents, we do that. If we think we have to back off rents, we do that also. We are re-pricing every day.'
The apartment vacancy rate in metro Denver area fell to 4.2 percent during the second quarter of 2013, reaching the lowest vacancy rate recorded since the third quarter of 2000.
At the same time, the average rent for all apartment types in metro Denver rose to $1,022, increasing 4.3 percent from the previous year, according to a report released Wednesday by the Apartment Association of Metro Denver and the Colorado Division of Housing.
Average rent for a two-bedroom, one-bathroom apartment climbed to $952.66.
"It is really tight," Jim Lorenzen, president of Cornerstone Apartment Services, said of the market for renters. "As of today, we have 22 rent-ready apartments out of 2,100."
Rocky Sundling, immediate past president of the Apartment Association of Denver and regional manager of Greystar Real Estate Partners, said demand for rental units is coming from the influx of people moving to the metro area and job growth from a recovering economy.
Sundling said that on the supply side, there are a large number of apartments in the construction pipeline - between 12,000 and 15,000 which will be delivered in the next two years.
"Although it is coming, it is not here yet," said Sundling. "So you factor increasing demand with a constrained supply - that's leading to the increased rents."
Sundling said that although the rental market is "very healthy" with rents increasing and vacancies decreasing, there should be a noticeable moderation in the next couple of years.
Some of the factors that will lead to the moderation are the new apartments and the fact that rents are increasing faster than wages - a situation that can't be sustained.
Lorenzen of Cornerstone Apartment Services, said he has already seen "a little bit of flattening" in the company's ability to raise rents.
"Part of that is driven by the market in general, but part of it is that incomes have not kept pace," said Lorenzen.
"We meet every morning and discuss our availability, discuss our leasing activity for the prior day. If we can increase rents, we do that. If we think we have to back off rents, we do that also. We are re-pricing every day.'
Monday, July 15, 2013
30-Year Fixed Mortgage Rates Surge to Highest Level in 2 Years
Rates are rising... Denver Post7.14.13
"Rates surged on Friday after a stronger-than-expected jobs report and upward revisions to prior months' unemployment levels," said Erin Lantz, director of Zillow Mortgage Marketplace. "This week, rate movement will depend on whether Wednesday's release of the Federal Open Market Committee meeting minutes and Fed Chairman Ben Bernanke's speech reinforce or depress market expectations of a September start of easing federal stimulus."
Additionally, the 15-year fixed mortgage rate this morning was 3.41 percent, and for 5/1 ARMs, the rate was 3.38 percent.
Mortgage
rates for 30-year fixed mortgages rose this week, with the current rate
borrowers were quoted on Zillow Mortgage Marketplace at 4.41 percent, up from
4.17 percent at this same time last week.
The 30-year fixed mortgage rate hovered between 4.2 and 4.3 percent early
last week and spiked at 4.6 percent on Friday before declining near the current
rate early this week. The last time rates exceeded 4.4 percent was July 26,
2011."Rates surged on Friday after a stronger-than-expected jobs report and upward revisions to prior months' unemployment levels," said Erin Lantz, director of Zillow Mortgage Marketplace. "This week, rate movement will depend on whether Wednesday's release of the Federal Open Market Committee meeting minutes and Fed Chairman Ben Bernanke's speech reinforce or depress market expectations of a September start of easing federal stimulus."
Additionally, the 15-year fixed mortgage rate this morning was 3.41 percent, and for 5/1 ARMs, the rate was 3.38 percent.
Friday, July 12, 2013
Three Compelling Reasons Why Buyers Should Buy…Now
from rismedia.com....good points...
For years, we’ve been touting the buyer’s market concept to prospective clients, citing everything from high inventory levels to hard-to-pass-up deals on short sales and REOs. But here in the midst of the busy summer season, the tables appear to be turning, with increased home prices and reduced inventory now giving sellers their day in the sun.
With the seasons changing to once again benefit sellers, how do real estate professionals convince prospective buyers that it’s still a great time to buy? By citing some of the very same trends sellers are excited about, and some that might not even be on their radar:
1. Rising Home Prices
Home prices are inching upward at an accelerated rate. And since price is likely the most significant consideration among people deciding whether or not to buy, prospective buyers may initially be put off by this trend. Appeal to their desire for homeownership by bringing to their attention that home values are projected to increase even further moving into next year. By taking the leap now, they may be seizing their best chance to get into a starter home or upsize into something that’s more suitable for their changing needs. Depending on how high prices climb, they may even see an opportunity to build long-term equity.
2. Low Mortgage Rates and Faster Closing Times
Mortgage rates are at the lowest they’ve been in a long time. That fact—along with the trend among mortgage brokers to increase their turn times to give buyers a competitive advantage in a hot market—is great news for buyers hoping to get into a home before prices increase any further, and for sellers looking to sell their properties at the fair market price as quickly as possible. The Mortgage Bankers Association has already projected that mortgage rates will likely inch back up—possibly to a full point—within the next year, creating yet another reason why now is the time for buyers to make their move
3. The Re-emergence of New Construction
While increased prices and dwindling inventory among existing homes have created a level of competition that favors sellers, it has also created an opportunity for new-home construction to re-emerge. For those reluctant to participate in the frenzy to purchase existing homes, new construction gives them a viable option to consider.
Now more than ever, it’s important for agents to focus the attention of their buyers beyond what’s happening right this minute and explain to them what might be coming next. Perhaps there’s a case to be made for taking advantage of whatever shred of a buyer’s market remains for the time being.
Then again, perhaps what we all need to remember is that no matter what’s happening in the market today, tomorrow, or a year from now, real estate is almost always a good investment for the long term. For those who remember that—and make wise choices to match their ambition—this is everybody’s market.
For years, we’ve been touting the buyer’s market concept to prospective clients, citing everything from high inventory levels to hard-to-pass-up deals on short sales and REOs. But here in the midst of the busy summer season, the tables appear to be turning, with increased home prices and reduced inventory now giving sellers their day in the sun.
With the seasons changing to once again benefit sellers, how do real estate professionals convince prospective buyers that it’s still a great time to buy? By citing some of the very same trends sellers are excited about, and some that might not even be on their radar:
1. Rising Home Prices
Home prices are inching upward at an accelerated rate. And since price is likely the most significant consideration among people deciding whether or not to buy, prospective buyers may initially be put off by this trend. Appeal to their desire for homeownership by bringing to their attention that home values are projected to increase even further moving into next year. By taking the leap now, they may be seizing their best chance to get into a starter home or upsize into something that’s more suitable for their changing needs. Depending on how high prices climb, they may even see an opportunity to build long-term equity.
2. Low Mortgage Rates and Faster Closing Times
Mortgage rates are at the lowest they’ve been in a long time. That fact—along with the trend among mortgage brokers to increase their turn times to give buyers a competitive advantage in a hot market—is great news for buyers hoping to get into a home before prices increase any further, and for sellers looking to sell their properties at the fair market price as quickly as possible. The Mortgage Bankers Association has already projected that mortgage rates will likely inch back up—possibly to a full point—within the next year, creating yet another reason why now is the time for buyers to make their move
3. The Re-emergence of New Construction
While increased prices and dwindling inventory among existing homes have created a level of competition that favors sellers, it has also created an opportunity for new-home construction to re-emerge. For those reluctant to participate in the frenzy to purchase existing homes, new construction gives them a viable option to consider.
Now more than ever, it’s important for agents to focus the attention of their buyers beyond what’s happening right this minute and explain to them what might be coming next. Perhaps there’s a case to be made for taking advantage of whatever shred of a buyer’s market remains for the time being.
Then again, perhaps what we all need to remember is that no matter what’s happening in the market today, tomorrow, or a year from now, real estate is almost always a good investment for the long term. For those who remember that—and make wise choices to match their ambition—this is everybody’s market.
Wednesday, July 10, 2013
Average Denver apartment rents hit historic highs
from bizjournal.com
Apartment rents for metro Denver rose to the highest level in 31 years in the first quarter, the Apartment Association of Metro Denver reported Monday.
Average rents rose to $992 per month through March 31, jumping 4.2 percent or $40 in a year, according to the association's Vacancy & Rent Report.
But Ryan McMaken — economist with the Colorado Division of Housing, which co-produces the report — explained that when adjusted for inflation, that’s about a nine-year high.
The vacancy rate, as expected, continued to slide, logging in at 4.6 percent in Q1, down from Q4 2012’s 4.9 percent and from the same quarter a year ago, also 4.9 percent, according to the report.
That was the second-lowest vacancy rate recorded in any quarter since Q1 2001. The Broomfield/Boulder submarket posted the lowest vacancy rate at 3.2 percent, with Douglas County posting the highest at 6.5 percent.
“The number of new apartments delivered has increased rapidly since 2010, but the numbers haven’t been large enough so far to push vacancy rates up significantly, said McMaken. “We do see some submarkets where vacancies are temporarily up as new communities lease up, but that’s not indicative of a decline in demand.”
Rents rose year-over-year in every county measured, with the exception of Adams County. But rents there did climb $17 per square foot per month from the fourth quarter of 2012 to $910 — the lowest average of the counties surveyed. Douglas posted the highest average at $1,186 per month, a 6.9 percent year-over-year increase.
“Rent growth is solid, and even when adjusted for inflation, the average rent is almost to a nine-year high,” McMaken said.
Here’s the breakdown of Q1 vacancy rate and average rent for each county in the survey:
• Adams: 5.2 percent; $910.
• Arapahoe: 4.1 percent; $950.
• Boulder/Broomfield: 3.2 percent; $1,150
• Denver: 5.4 percent; $1,008
• Douglas: 6.5 percent; $1,186
• Jefferson: 3.7 percent; $958
“This is another quarter of rent growth overall, and its a rebound from the expected sag of the fourth quarter,” said Ron Throupe, report author from the University of Denver. “Although we are having new units built there is not a glut as vacancy is again down, and the current quarter compares favorably even to other historic times when new units were in the neighborhood of 6,000 units per year.”
Apartment rents for metro Denver rose to the highest level in 31 years in the first quarter, the Apartment Association of Metro Denver reported Monday.
Average rents rose to $992 per month through March 31, jumping 4.2 percent or $40 in a year, according to the association's Vacancy & Rent Report.
But Ryan McMaken — economist with the Colorado Division of Housing, which co-produces the report — explained that when adjusted for inflation, that’s about a nine-year high.
The vacancy rate, as expected, continued to slide, logging in at 4.6 percent in Q1, down from Q4 2012’s 4.9 percent and from the same quarter a year ago, also 4.9 percent, according to the report.
That was the second-lowest vacancy rate recorded in any quarter since Q1 2001. The Broomfield/Boulder submarket posted the lowest vacancy rate at 3.2 percent, with Douglas County posting the highest at 6.5 percent.
“The number of new apartments delivered has increased rapidly since 2010, but the numbers haven’t been large enough so far to push vacancy rates up significantly, said McMaken. “We do see some submarkets where vacancies are temporarily up as new communities lease up, but that’s not indicative of a decline in demand.”
Rents rose year-over-year in every county measured, with the exception of Adams County. But rents there did climb $17 per square foot per month from the fourth quarter of 2012 to $910 — the lowest average of the counties surveyed. Douglas posted the highest average at $1,186 per month, a 6.9 percent year-over-year increase.
“Rent growth is solid, and even when adjusted for inflation, the average rent is almost to a nine-year high,” McMaken said.
Here’s the breakdown of Q1 vacancy rate and average rent for each county in the survey:
• Adams: 5.2 percent; $910.
• Arapahoe: 4.1 percent; $950.
• Boulder/Broomfield: 3.2 percent; $1,150
• Denver: 5.4 percent; $1,008
• Douglas: 6.5 percent; $1,186
• Jefferson: 3.7 percent; $958
“This is another quarter of rent growth overall, and its a rebound from the expected sag of the fourth quarter,” said Ron Throupe, report author from the University of Denver. “Although we are having new units built there is not a glut as vacancy is again down, and the current quarter compares favorably even to other historic times when new units were in the neighborhood of 6,000 units per year.”
Wednesday, July 3, 2013
Metrolist: Denver metro housing market cooling
Denver Post article below...I've been seeing the same thing.
The
number of homes for sale in the Denver housing market increased significantly in
June, while home sales decreased, indicating a cooling of the market, Metrolist said in a report Wednesday.
Available home listings increased 12 percent from a previous record breaking month-over-month spike but there are still 16 percent fewer homes on the market than there were at this time last year, said Metrolist.
The total supply of Denver-area condos and single family homes would last about 60 days.
Meanwhile, home sales experienced a minor slowing in June, which was coupled with a decrease in the days on market to 43 days, signifying not only a competitive balance of available listings and local demand but a clear race to lock in housing contracts before interest rates go up, said the report.
"The Denver housing market is finally seeing some relief from our long-term undersupplied condition," said Metrolist CEO and president Kirby Slunaker. "We're still seeing strong sales figures, which were coupled with another jump in sales prices - its clear buyer and seller confidence remains high."
Average sold prices increased three percent month-over-month averaging just under $320,000. Denver-area prices are seven percent over average price in June 2012, demonstrating strength and stabilization within the Denver housing market, said Metrolist.
Metrolist noted that rising interest rates "clearly have a significant impact" on the marketplace as some buyers have found their buying power reduced.
Independent real-estate analyst Gary Bauer said that the Metrolist numbers show that the homes for sale in June were 9,187 or up 973 homes from May's 8,214, accounting for the 12 percent increase in inventory.
"By the numbers, the month of June ended with an inventory of 9,187 homes; 7,645 homes came onto the market; 7,420 homes went under contract; 5,566 homes closed with a closed dollar volume of $1.77 billion," said Bauer.
He noted that June "traditionally starts slow as everybody leaves town as soon as school is out."
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