Tuesday, August 30, 2016

Existing-Home Sales Lose Steam in July


according to the national association of realtors:

Existing-Home Sales Lose Steam in July

MEDIA CONTACT: ADAM DESANCTIS / 202-383-1178 / EMAIL(LINK SENDS E-MAIL)
WASHINGTON (August 24, 2016) — Slowed by frustratingly low inventory levels in many parts of the country, existing-home sales lost momentum in July and decreased year-over-year for the first time since November 2015, according to the National Association of Realtors®. Only the West region saw a monthly increase in closings in July.  
Total existing-home sales 1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 3.2 percent to a seasonally adjusted annual rate of 5.39 million in July from 5.57 million in June. For only the second time in the last 21 months 2, sales are now below (1.6 percent) a year ago (5.48 million).
Lawrence Yun, NAR chief economist, says existing sales fell off track in July after steadily climbing the last four months. “Severely restrained inventory and the tightening grip it’s putting on affordability is the primary culprit for the considerable sales slump throughout much of the country last month,” he said. “Realtors® are reporting diminished buyer traffic because of the scarce number of affordable homes on the market, and the lack of supply is stifling the efforts of many prospective buyers attempting to purchase while mortgage rates hover at historical lows.”
Adds Yun, “Furthermore, with new condo construction barely budging and currently making up only a small sliver of multi-family construction, sales suffered last month as condo buyers faced even stiffer supply constraints than those looking to purchase a single-family home.”
The median existing-home price 3 for all housing types in July was $244,100, up 5.3 percent from July 2015 ($231,800). July’s price increase marks the 53rd consecutive month of year-over-year gains.
Total housing inventory 4 at the end of July inched 0.9 percent higher to 2.13 million existing homes available for sale, but is still 5.8 percent lower than a year ago (2.26 million) and has now declined year-over-year for 14 straight months. Unsold inventory is at a 4.7-month supply at the current sales pace, which is up from 4.5 months in June.
“Although home sales are still expected to finish the year at their strongest pace since the downturn, thanks to a very strong spring, the housing market is undershooting its full potential because of inadequate existing inventory combined with new home construction failing to catch up with underlying demand,” adds Yun. “As a result, sales in all regions are now flat or below a year ago and price growth isn’t slowing to a healthier and sustainable pace.”
The share of first-time buyers was 32 percent in July, which is below last month (33 percent) but up from 28 percent a year ago. First-time buyers represented 30 percent of sales in all of 2015.
All-cash sales were 21 percent of transactions in July, down from 22 percent in June, 23 percent a year ago and the lowest share since November 2009 (19 percent). Individual investors, who account for many cash sales, purchased 11 percent of homes in July, unchanged from June and down from 13 percent a year ago. Seventy percent of investors paid in cash in July.
According to Freddie Mac, the average commitment rate(link is external) for a 30-year, conventional, fixed-rate mortgage dropped from 3.57 percent in June to 3.44 percent in July. Mortgage rates have now fallen five straight months and in July were the lowest since January 2013 (3.41 percent). The average commitment rate for all of 2015 was 3.85 percent.
NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida, says in addition to affordability concerns, an issue seen earlier in the housing recovery may be reemerging. Realtors® are indicating that appraisal complications are appearing more frequently as the reason why a contract signing experienced a delayed settlement.
“Appraisal-related contract issues have notably risen over the past year and were the root cause of over a quarter of contract delays in the past three months 5,” he said. “This is likely a combination of sharply growing home prices in some areas, the uptick in home sales this year and the strong refinance market overworking the already reduced number of practicing appraisers. Realtors® are carefully monitoring this trend, and some have already indicated they’re extending closing dates on contracts to allow extra time to accommodate the possibility of appraisal-related delays.”
Coming in at the lowest share since NAR began tracking in October 2008, distressed sales 6– foreclosures and short sales – were 5 percent of sales in July, down from 6 percent in June and 7 percent a year ago. Four percent of July sales were foreclosures and 1 percent were short sales. Foreclosures sold for an average discount of 18 percent below market value in July (11 percent in June), while short sales were discounted 16 percent (18 percent in June).
Properties typically stayed on the market for 36 days in July, up from 34 days in June but down from 42 days a year ago. Short sales were on the market the longest at a median of 95 days in July, while foreclosures sold in 54 days and non-distressed homes took 34 days. Forty-seven percent of homes sold in July were on the market for less than a month.
Inventory data from Realtor.com®(link is external) reveals that the metropolitan statistical areas where listings stayed on the market the shortest amount of time in July were Denver-Aurora-Lakewood, Colo., San Francisco-Oakland-Hayward, Calif., San Jose-Sunnyvale-Santa Clara, Calif., and Seattle-Tacoma-Bellevue, Wash., all at a median of 32 days; and Vallejo-Fairfield, Calif., at a median of 36 days.

Single-family and Condo/Co-op Sales

Single-family home sales decreased 2.0 percent to a seasonally adjusted annual rate of 4.82 million in July from 4.92 million in June, and are now 0.8 percent under the 4.86 million pace a year ago. The median existing single-family home price was $246,000 in July, up 5.4 percent from July 2015.
Existing condominium and co-op sales dropped 12.3 percent to a seasonally adjusted annual rate of 570,000 units in July from 650,000 in June, and are now 8.1 percent below July 2015 (620,000 units). The median existing condo price was $228,400 in July, which is 4.1 percent above a year ago.

Regional Breakdown

July existing-home sales in the Northeast descended 13.2 percent to an annual rate of 660,000, and are now 5.7 percent below a year ago. The median price in the Northeast was $284,000, which is 3.3 percent above July 2015.
In the Midwest, existing-home sales fell 5.2 percent to an annual rate of 1.28 million in July (unchanged from a year ago). The median price in the Midwest was $194,000, up 5.0 percent from a year ago.
Existing-home sales in the South in July declined 1.8 percent to an annual rate of 2.22 million, and are now 1.8 percent below July 2015. The median price in the South was $214,500, up 6.6 percent from a year ago.
Existing-home sales in the West rose 2.5 percent to an annual rate of 1.23 million in July, but are still 0.8 percent below a year ago. The median price in the West was $346,100, which is 6.4 percent above July 2015.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
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NOTE:  For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR rebenchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.
Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger data sample – about 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
Primarily because of contract delays related to the rollout of Know Before You Owe, November 2015 was the last year-over-year decline (3.6 percent). Prior to that, the last annual sales decrease was September 2014 (2.1 percent).
The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.
The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single-family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.
Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90 percent of transactions and condos were measured only on a quarterly basis).
According to the Realtors® Confidence Index, 27 percent of contracts between May and July with a delayed settlement were because of appraisal related issues. This is up from 18 percent the first quarter of this year.
Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR’s Realtors® Confidence Index, posted at Realtor.org.

NOTE: NAR’s Pending Home Sales Index for July will be released August 31, and Existing-Home Sales for August will be released September 22; release times are 10:00 a.m. ET.

Monday, August 29, 2016

Find The Lowest Rate for your Home Loan Purchase

Find The Lowest Rate

So you've got your new home picked out and you're ready to embark upon the long process of securing a home loan and ultimately taking ownership of your dream home. Armed with that excitement, you take to the Internet in hopes of uncovering a hidden interest rate nugget, that low rate that other people have overlooked and that you have found through persistence and effort. Well, as you embark on that trip, there are some things to keep in mind during the pursuit for the lowest interest rate possible.

There are probably thousands of web sites offering financial data that can be pertinent to your search, so it is important to quickly cut through them all and pick one that seems to be at least somewhat reputable and has easy-to-access information. You'll probably want to focus your search on a 30-yeark, fixed-rate mortgage to get a barometer of the interest rate climate initially.

There are many sites out there that will go into detail on interest rate fluctuation but finding one with graphs that can show you the trend of that rate over time will provide you with a great piece of ammunition when trying to determine what the short term market might do and what kind of interest rate would, in the end, be a good one for the time frame you're looking at.

In addition, there are scores of financial articles written every day about the state of the real estate market and doing some reading on the current state of the market will help you greatly in your pursuit for a low interest rate. Sites like the Wall Street Journal online and other respected newspapers usually publish their full financial sections online. Google News and other outlets can additionally offer a slew of recent financial articles with a search or two.

Each loan has its own special set of financial aspects, so comparing them can be difficult at first glance. Thankfully, there are sites out there that will do it for you and doing a search for financial loan comparisons will give you a few good results. By putting in some information about you and your financial status, you can get some loan offers back that are tailored to your situation and can be compared against each other. This is a great step to help save time that might otherwise be spent deciphering the many loan options available through a multitude of lending agencies.

Finally, be thorough in your search. If you are truly looking to get a full picture of the loans available to you, contacting your local institutions (banks and credit unions) is a great step in the process and sometimes the added benefit of supporting local business or having a nearby branch office can make up for an interest rate shortcoming. It is up to you to assign priority to something like that.

Interest rates are important but while you've set out to pursue the lowest rate possible, you might find that there are other benefits you haven't considered that are important as well. These aspects should also make their way into your loan comparison as things like convenience, reliability and other factors differ from lender to lender. Decide what is important to you and what concessions you would make to accommodate one of those other desires.

Finding the lowest interest rate possible is a noble goal and with the avalanche of online information at the fingertips of anyone with an Internet connection, finding that rate is easier now that in the past. However, as you go through your search, keep in mind that a mortgage is more than just an interest rate and remain open to other benefits that might offset a bit of a higher rate.

This is another original article by Joe Lane, co-owner of The Lane Real Estate Team at http://www.joelane.com/. Are you looking for an experienced Tri City WA Real Estate agency? With 20 years of service based, business experience, Joe and Colleen Lane work hard to serve home buyers and sellers for the Tri Cities of Washington's Kennewick, Richland, Pasco, and surrounding areas.

Saturday, August 27, 2016

Find The Lowest Rate for your Home Laoan

Find The Lowest Rate

So you've got your new home picked out and you're ready to embark upon the long process of securing a home loan and ultimately taking ownership of your dream home. Armed with that excitement, you take to the Internet in hopes of uncovering a hidden interest rate nugget, that low rate that other people have overlooked and that you have found through persistence and effort. Well, as you embark on that trip, there are some things to keep in mind during the pursuit for the lowest interest rate possible.

There are probably thousands of web sites offering financial data that can be pertinent to your search, so it is important to quickly cut through them all and pick one that seems to be at least somewhat reputable and has easy-to-access information. You'll probably want to focus your search on a 30-yeark, fixed-rate mortgage to get a barometer of the interest rate climate initially.

There are many sites out there that will go into detail on interest rate fluctuation but finding one with graphs that can show you the trend of that rate over time will provide you with a great piece of ammunition when trying to determine what the short term market might do and what kind of interest rate would, in the end, be a good one for the time frame you're looking at.

In addition, there are scores of financial articles written every day about the state of the real estate market and doing some reading on the current state of the market will help you greatly in your pursuit for a low interest rate. Sites like the Wall Street Journal online and other respected newspapers usually publish their full financial sections online. Google News and other outlets can additionally offer a slew of recent financial articles with a search or two.

Each loan has its own special set of financial aspects, so comparing them can be difficult at first glance. Thankfully, there are sites out there that will do it for you and doing a search for financial loan comparisons will give you a few good results. By putting in some information about you and your financial status, you can get some loan offers back that are tailored to your situation and can be compared against each other. This is a great step to help save time that might otherwise be spent deciphering the many loan options available through a multitude of lending agencies.

Finally, be thorough in your search. If you are truly looking to get a full picture of the loans available to you, contacting your local institutions (banks and credit unions) is a great step in the process and sometimes the added benefit of supporting local business or having a nearby branch office can make up for an interest rate shortcoming. It is up to you to assign priority to something like that.

Interest rates are important but while you've set out to pursue the lowest rate possible, you might find that there are other benefits you haven't considered that are important as well. These aspects should also make their way into your loan comparison as things like convenience, reliability and other factors differ from lender to lender. Decide what is important to you and what concessions you would make to accommodate one of those other desires.

Finding the lowest interest rate possible is a noble goal and with the avalanche of online information at the fingertips of anyone with an Internet connection, finding that rate is easier now that in the past. However, as you go through your search, keep in mind that a mortgage is more than just an interest rate and remain open to other benefits that might offset a bit of a higher rate.

This is another original article by Joe Lane, co-owner of The Lane Real Estate Team at http://www.joelane.com/. Are you looking for an experienced Tri City WA Real Estate agency? With 20 years of service based, business experience, Joe and Colleen Lane work hard to serve home buyers and sellers for the Tri Cities of Washington's Kennewick, Richland, Pasco, and surrounding areas.

Thursday, August 25, 2016

The 10 Most Beautiful Homes in St. Louis

The 10 Most Beautiful Homes in St. Louis:

Selecting a mere 10 houses in a city with an abundance of style is never an easy task, but it’s one that we’re more than happy—and prepared—to take on.