Home Sales Prices Rise Strongly in April

New U.S. single-family home sales rose more than expected in April and the median price surged, suggesting the housing market recovery was continuing to gain traction.

With housing supply still tight, the median price for a new home rose 8.3 percent from a year ago to $297,300. While higher home prices could reduce affordability, they boost household equity, which could boost consumer spending.

The Commerce Department said on Tuesday sales increased 6.8 percent to a seasonally adjusted annual rate of 517,000 units. March's sales pace was revised up to 484,000 units from the previously reported 481,000 units.

The upbeat report added to housing starts data in indicating that housing was gaining momentum after treading water for much of last year. Economists believe housing will take the baton from a lethargic manufacturing sector and help to drive economic growth this year.

Housing is being buoyed by a strengthening jobs market, which is encouraging young adults to set up their own households.

New homes sales jumped 36.8 percent in the Midwest to a seven-year high and increased 5.8 percent in the South. Sales fell 5.6 percent in the Northeast and slipped 2.3 percent in the West.

The stock of new houses available on the market rose 0.5 percent last month to 205,000. Supply still remains less than half of what it was at the height of the housing boom, good news for home builders who will need to ramp up construction.

At April sales pace it would take 4.8 months to clear the supply of houses on the market, down from 5.1 months in March.

EASY WAYS TO ADD CHARACTER TO YOUR HOME

Lighting -  You may be able to find charming period lighting if you scour second-hand stores, antique shops, or flea markets. Or, you can pick up a reproduction piece and instantly transform a space.
1. Moldings - Crown molding is among the easiest ways to bring some character and architectural interest into your home, and it's inexpensive, especially if you do it yourself. But if the idea of mitering corners is making you hyperventilate, a handyman can quickly transform your blah space into something beautiful.
2. Cabinetry that looks built-in - Those charming built-ins you see in old Craftsman homes—you know, the ones that flank an old fireplace or create a great hutch in the dining room—are lovely. Although it would be hard to find a home built nearly 100 years ago with perfect—condition built-ins. You know what would be easier? Creating your own built-in-looking cabinetry. It's not as hard as it sounds, and it doesn't have to cost much either.
4. Cozy reading nook - Is there anything more charming, really, than an inspiring space to curl up with a book?  This can be easily achieved by building a platform or with in-stock cabinets from Lowe's and a DIY cushion. See some great ideas here.
5. Think hardware - This is key when deciding on a style for the home, whether it be Victorian, French Colonial, Modern, etc.. You want to stay consistent so the house will have a uniform feel. The last thing you want is a house with multiple personalities.   

Written by Jaymi Naciri 

Home Upgrades that Pay Off the Most

All renovations are not created equal. 

Curb appeal is one of the most common updates - some buyers won't bother to come into the house if the exterior is not looking it's best.

Some say that the greatest return for your investment is a mid-range bathroom remodel, a $3,000 job that returns $1.71 for every dollar spent. 

Some say that the worst home improvements for value are kitchen remodeling and finishing a basement. A top-of-the-line kitchen reno will cost you $22,000, and you’ll only get about $0.51 back for every $1 you spend - I have found that buyers LOVE the remodeled kitchen.

You might consider adding a deck or windows.... just be careful that  you aren't spending money that would be better spent for buyer's closing costs or other incentives.

Real Estate recap this week

The rate of distressed home sales fell to 2008 levels in February and should return to a historically normal level in mid-2017 if the annual decrease seen that month holds steady, according to data aggregator CoreLogic.

Here’s what happened this week in the real estate market:

The number of seriously underwater homeowners inched up slightly during the first quarter due to slow home price appreciation, according to housing data provider RealtyTrac.

Home prices continued to rise in February, posting higher annual gains than in January, according to the latest Case-Shiller 20-city Composite.

The number of homes that went under contract rose for the third straight month in March, the National Association of Realtors reported.

Although most analysts have shown optimism for a strong spring homebuying season, online mortgage marketplace provider Zillow reported that its 30-year fixed mortgage rates have been flat for the past month.

New research from emerging markets portal Lamudi shows that Pakistan has the most eco-friendly homes for sale and for rent among the 30-plus countries in Asia, Africa, the Middle East and Latin America the site examined — for the second year in a row.

Better inventories and softer prices in the mid and upper tiers, improved levels of equity, strengthening income levels, and forecasts of rising rates coupled with pent-up demand and faster rising prices for entry-level homes could make this the perfect year for move-up sellers and buyers to move on up.

Mortgage rates inched up this week amid mixed economic reports.

Purchase mortgage loan activity is gaining momentum as the housing market enters the peak spring buying season, according to Ellie Mae’s latest Origination Insight Report.

The big news of the week: The U.S. economy stalled in the first quarter, GDP rising 0.2 percent. And long-term rates, which go down on weak economic news, instead went up.

provided by Inman