some interesting national real estate info, yet the market can be different locally...
from realtor.com
After hitting the highest level in nearly four years, existing-home sales
declined in September, but limited inventory conditions continued to pressure
home prices in much of the country, according to the National Association of Realtors.
Total existing-home sales, which are
completed transactions that include single-family homes, townhomes, condominiums
and co-ops, declined 1.9 percent to a seasonally adjusted annual rate of 5.29
million in September from a downwardly revised 5.39 million in August, but are
10.7 percent above the 4.78 million-unit pace in September 2012. Sales have
remained above year-ago levels for the past 27 months.
Lawrence Yun, NAR
chief economist, said a decline was expected. “Affordability has fallen to a
five-year low as home price increases easily outpaced income growth,” he said.
“Expected rising mortgage interest rates will further lower affordability in
upcoming months. Next month we may see some delays associated with the
government shutdown.”
According to Freddie Mac, the national average commitment
rate for a 30-year, conventional, fixed-rate mortgage rose to 4.49 percent
in September from 4.46 percent in August, and is the highest since July 2011
when it was 4.55 percent; the rate was 3.47 percent in September 2012.
The national median existing-home price
2 for all housing types was
$199,200 in September, up 11.7 percent from September 2012. This is the 10th
consecutive month of double-digit year-over-year increases.
Distressed homes
3 – foreclosures and short sales – accounted for
14 percent of September sales, up from 12 percent in August, which was the
lowest share since monthly tracking began in October 2008; they were 24 percent
in September 2012. Lower levels in the share of distressed sales account for
some of the growth in median price.
Nine percent of September sales were foreclosures, and 5 percent were short
sales. Foreclosures sold for an average discount of 16 percent below market
value in September, while short sales were discounted 12 percent.
Data from realtor.com,
4
NAR’s listing site, show some of the strongest increases in listing price from a
year ago are in the Detroit area, up 44.6 percent; Las Vegas, up 30.7 percent;
and Sacramento, up 28.9 percent.
Total housing inventory at the end of September was unchanged at 2.21 million
existing homes available for sale, which represents a 5.0-month
supply
5 at the current sales pace, compared with a 4.9-month supply
in August. Unsold inventory is 1.8 percent above a year ago, when there was a
5.4-month supply.
NAR President Gary
Thomas, broker-owner of Evergreen Realty in Villa Park, Calif., said there
are far-ranging consequences from the repeating stalemates in Washington. “Just
one impact of the recent government shutdown – delays in tax transcripts needed
for approval of mortgage loans – put a monkey wrench in the transaction process
and could negatively impact sales closings in next month’s report,” he said.
Thomas said flood insurance also is a concern. “Realtors® report that
approximately 10 percent of transactions in September were located in flood
zones, and that nearly one out of 10 of those transactions were delayed or
canceled due to concerns over rising insurance rates.” Notably higher flood
insurance rates went into effect on October 1, and could impact future sales in
flood zones.
The median time on market for all homes was 50 days in September, up from 43
days in August, but much faster than the 70 days on market in September 2012.
Short sales were on the market for a median of 93 days, while foreclosures
typically sold in 43 days, and non-distressed homes took 49 days. Thirty-nine
percent of homes sold in September were on the market for less than a month.
First-time buyers accounted for 28 percent of purchases in September,
unchanged from August, but down from 32 percent in September 2012.
All-cash sales comprised 33 percent of transactions in September, up from 32
percent in August, and 28 percent in September 2012. Individual investors, who
account for many cash sales, purchased 19 percent of homes in September, up from
17 percent in August, and 18 percent in September 2012. Last month, 74 percent
of investors paid cash.
Single-family home sales slipped 1.5 percent to a seasonally adjusted annual
rate of 4.68 million in September from 4.75 million in August, but are 10.9
percent above the 4.22 million-unit pace in September 2012. The median existing
single-family home price was $199,300 in September, which is 11.4 percent higher
than a year ago.
Existing condominium and co-op sales fell 4.7 percent to an
annual rate of 610,000 units in September from 640,000 in August, but are 8.9
percent above the 560,000-unit level a year ago. The median existing condo price
was $198,600 in September, up 14.2 percent from September 2012.
Regionally, existing-home sales in the Northeast declined 2.8 percent to an
annual rate of 690,000 in September, but are 15.0 percent above September 2012.
The median price in the Northeast was $240,900, up 2.3 percent from a year
ago.
Existing-home sales in the Midwest fell 5.3 percent in September to a pace of
1.25 million, but are 12.6 percent higher than a year ago. The median price in
the Midwest was $158,400, which is 9.0 percent above September 2012.
In the South, existing-home sales declined 1.4 percent to an annual level of
2.10 million in September, but are 9.9 percent above September 2012. The median
price in the South was $171,600, up 13.9 percent from a year ago.
Existing-home sales in the West rose 1.6 percent to a pace of 1.25 million in
September, and are 7.8 percent higher than a year ago. With ongoing inventory
restrictions, the median price in the West rose to $286,300, which is 16.8
percent above September 2012.
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