Homes Selling Fast in Many Places

Homes sold faster last month than in any February since 2007 as eager buyers met a tight supply of homes for sale, industry figures show.

Homes were on the market for a median of 98 days last month, down from 123 days in February 2011, Realtor.com says. That means half the homes listed for sale in February were on the market for less than 98 days and half for more than that.

Even 98 days is long for many markets. In Oakland, homes spent just 14 days on the market last month before they went under contract or were pulled off for other reasons, Realtor.com data show. In Sacramento – just 21 days.

“Things are flying off the market,” says Barbara Hendrickson, of Red Oak Realty in Berkeley, Calif.,

While eight of the 10 fastest-moving markets were in California, Denver and Seattle made the top 10, too, with median market times of 28 and 33 days, respectively, Realtor.com says. Nearly all of the markets with low median market times are also seeing big declines in home listings.

The average dropoff was 48 percent from a year earlier in the markets with the greatest declines in supply. Most were in California. That compared with a 16 percent drop for 146 metropolitan regions for which Realtor.com has listing data.

But some metropolitan areas outside of California are also seeing fast sales, the Realtor.com data show.

In 18 non-California cities, the median number of days on the market was less than 60. Those included Phoenix, Washington, D.C., Detroit, Minneapolis, Atlanta, Dallas, Orlando and Fort Lauderdale.

Phoenix has led the home-price recovery, with prices up 23% in December vs. a year earlier, according to the Standard & Poor’s Case-Shiller index. The market there has been helped by strong investor demand for homes. Atlanta is now seeing a surge of investors, too, as is Orlando, Realtors say.

With such fast-moving markets, buyers and sellers are less likely to see price reductions on properties and more likely to see more multiple offers, says Curt Beardsley, vice president with Move, which operates Realtor.com. In Oakland, two out of three single-family homes sold in February drew multiple offers, says Aman Daro, marketing director for Red Oak Realty.

Buyers are also more likely to waive home-inspection contingencies to better compete, says Gerhard Ade, Seattle-area real estate broker with RSVP Real Estate.

He recently had a listing at $225,000. It got 12 offers and sold for $235,000 to a buyer who waived the home inspection and paid cash.

Cash buyers accounted for 28 percent of existing-home buyers in January, the National Association of Realtors says. Cash buyers are often investors. Their presence in a market can be tough for first-time buyers, who usually need a loan. Sellers typically prefer cash offers.

Nationwide, the inventory of homes for sale fell in January to a 4.2-month supply, almost an eight-year low, the National Association of Realtors says.

 







Copyright © USA TODAY 2013

Economist: Big Discounts on Foreclosures Fading

Homebuyers may not get as great of a deal on a foreclosure as they once did, according to Paul Diggle from Capital Economics in a new report.

Foreclosure starts are falling and the inventory of foreclosures has been decreasing, which has caused the discount on foreclosures to lessen.

The discount on foreclosed homes compared to other homes has fallen to a 12 percent average, according to Diggle. That was about the same percentage prior to the housing crash, he says. Last year the foreclosure discount averaged about 30 percent.

“Ultra-low mortgage interest rates and steady, if not spectacular, job creation could mean that the delinquency rate and foreclosure start rate are falling quickly,” Diggle writes.

Source: “Those Amazing Deals on Foreclosed Homes Are Disappearing,” Business Insider (March 7, 2013)

 








© Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688

Move-up Buyers Shouldn’t Wait

Although waiting a few years to sell a home will likely mean a higher sales price, the cost of a bigger new home will increase as well, according to an analysis by Redfin. Financially, it makes more sense to capture today’s relatively low prices on the more expensive home.

Additionally, interest rates are still near record lows, but they’ll almost certainly rise over time, which means a higher monthly mortgage payment. In the next 12 months, the Mortgage Bankers Association expects rates to rise to 4.4 percent. Over a longer period, they are likely to be even higher, considering a 20-year U.S. average mortgage rate of about 6.5 percent.

The rationale for moving up now is fairly simple. A $100,000 home that appreciates 10 percent in one year would net a home seller an additional $10,000. But if that owner hopes to move into a home worth $200,000, the increased cost of the home one year from now, at the same 10 percent, would be $20,000 more.

 






© 2013 Florida Realtors®

Fla.’s housing market continues positive trends in Feb. 2013

Florida’s housing market reported more closed sales, rising median prices, increased pending sales, more new listings and a reduced inventory of homes for sale in February, according to the latest housing data released by Florida Realtors®.

“Each month brings more positive signs for the state’s housing market,” says 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “For example, February is the 14th month in a row that statewide median sales prices for both single-family homes and for townhouse-condo units increased year-over-year, according to Florida Realtors’ data.

“Properties are selling more quickly statewide, especially at certain price points – the median days a home is on the market dropped about 15 percent for single-family homes and 10 percent for townhouse-condo units in February. Plus, sellers are receiving more than 92 percent of their original listing price in both the single-family home and townhouse-condo markets.”

Statewide closed sales of existing single-family homes totaled 15,666 in February, up 10.3 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes last month rose 26.7 percent over the previous February. The statewide median sales price for single-family existing homes last month was $150,000, up 12.8 percent from the previous year.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in January 2013 was $174,100, up 12.6 percent from the previous year. In California, the statewide median sales price for single-family existing homes in January was $337,040; in Massachusetts, it was $282,500; in Maryland, it was $223,469; and in New York, it was $220,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 8,028 units sold statewide last month, up 7 percent compared to February 2012. Meanwhile, pending sales for townhouse-condos in February increased 14.3 percent compared to the year-ago figure. The statewide median for townhouse-condo properties was $115,000, up 21.1 percent over the previous year. NAR reported that the national median existing condo price in January 2013 was $169,600.

The inventory for single-family homes stood at a 5.5-months’ supply in February; inventory for townhouse-condos was at a 6.1-months’ supply, according to Florida Realtors.

“Several things are particularly striking about the February data,” said Florida Realtors Chief Economist Dr. John Tuccillo. “First, we note the continuing growth of cash sales, which are now half of existing single-family closed sales statewide and more than three-quarters of townhouse-condo closed sales. Second, we’re seeing more new listings and that trend is turning positive. This is the first sign that low inventories are convincing sellers to come to the market.

“Third, and related to the last point, the lowest price tiers (for home listings) are just about wiped out and are moving in a direction counter to the state trend,” Tuccillo noted. “The biggest movements in listings as well as the other metrics are in the $300,000-$500,000 price tier.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.53 percent in February 2013, down from the 3.89 percent average during the same month a year earlier.

To see the full statewide housing activity report, go to the Florida Realtors Research page on the website and click on the Research page; then look under Latest Housing Data, Statewide Residential Activity and get the February reports. Or go to Florida Realtors Media Center  and download the February 2013 data report PDFs under Market Data.


© 2013 Florida Realtors®

U.S. Rate on 30-Year Mortgage Declines to 3.51%

Average U.S. rates on fixed mortgages moved closer to historic lows this week, a trend that has helped drive a rebound in home sales.

Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year fixed mortgage declined to 3.51 percent from 3.56 percent last week. That’s near the 3.31 percent rate reached in November, the lowest on records dating to 1971.

The average rate on the 15-year fixed mortgage slipped to 2.76 percent from 2.77 last week. The record low is 2.63 percent.

The lowest mortgage rates in decades have helped the housing market recover. More people are buying homes, which has pushed up home prices. And ultra-low rates have encouraged more people to refinance. That often lowers monthly mortgage payments and leaves consumers with more spending money.

A measure of the number of Americans who signed contracts to buy homes rose in January from December to the highest level in more than 2 1/2 years, the National Association of Realtors reported Wednesday. The increase suggests that sales of previously occupied homes will continue rising in the coming months.

New-home sales jumped 16 percent last month from December to the highest level since July 2008, the Commerce Department said Tuesday. Home prices, meanwhile, rose by the most in more than six years in the 12 months ending in December.

Still, some people are unable to take advantage of the low mortgage rates, either because they can’t qualify for stricter lending rules or they lack the money for larger downpayment requirements.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for 30-year mortgages was unchanged at 0.8 point. The fee for 15-year loans also remained at 0.8 point.

The average rate on a one-year adjustable-rate mortgage ticked down to 2.64 percent from 2.65 percent last week. The fee for one-year adjustable-rate loans was steady at 0.4 point.

The average rate on a five-year adjustable-rate mortgage fell to 2.61 percent from 2.64 percent. The fee rose to 0.6 point from 0.5.











Copyright © 2013 The Associated Press, Marcy Gordon, AP business writer. All rights reserved.