Archive for March, 2014
Pending Home Sales Hold Steady in January
WASHINGTON (February 28, 2014) – Pending home sales were essentially unchanged in January, according to the National Association of Realtors®. Monthly gains in the South and Northeast were offset by declines in the West and Midwest.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, edged up 0.1 percent to 95.0 in January from an upwardly revised 94.9 in December, but is 9.0 percent below January 2013 when it was 104.4.
Lawrence Yun, NAR chief economist, said that factors which dampened December activity also were at play in January. “Ongoing disruptive weather patterns in much of the U.S. inhibited home shopping,” he said. “Limited inventory also is playing a role, especially in the West, while credit remains tight and affordability isn’t as favorable as it was a year ago.”
The December index reading was the lowest since November 2011, when it stood at 94.6.
The PHSI in the Northeast rose 2.3 percent to 79.0 in January, but is 5.3 percent below a year ago. In the Midwest the index declined 2.5 percent to 92.9 in January, and is 9.3 percent lower than January 2013. Pending home sales in the South increased 3.5 percent to an index of 111.2 in January, and is 5.5 percent below a year ago. The index in the West fell 4.8 percent in January to 84.2, and is 17.5 percent below January 2013.
Existing-home sales are expected to be weak in the first quarter, while prices continue to rise from limited inventory. “Increasing new home construction can quickly solve two problems, producing more inventory and taming price growth,” Yun said.
The pace of sales should pick up in the middle part of the year. Total existing-home sales are projected at just over 5.0 million in 2014, slightly below the volume recorded last year. The national median existing-home price is forecast to grow in the range of 5 to 6 percent this year.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
Realtors® Applaud Speedy Senate Action on Bipartisan Flood Insurance Affordability Bill
WASHINGTON (March 13, 2014) – The following is a statement by National Association of Realtors® President Steve Brown:
“Realtors® applaud the U.S. Senate for passing the Homeowner Flood Insurance Affordability Act, H.R. 3370, to curb flood insurance rate hikes for homes and commercial properties.
“We appreciate the Senate’s swift action on the legislation, which is a responsible and balanced solution to the skyrocketing flood insurance premiums affecting residential and commercial properties that were unintentionally triggered by the Biggert-Waters reforms to the National Flood Insurance Program.
“As the leading advocate for home and property owners, NAR applauds this bill for the relief and protection it will bring to businesses and families nationwide, who are experiencing financial hardship because of the extreme and sudden premium increases. We believe this legislation will bring relief to property owners by ensuring a slow and steady phase in of risk-based increases.
“Realtors® praise the Senate for their bipartisanship on this important issue and thank Sens. Robert Menendez (D-N.J.), Johnny Isakson (R-Ga.) and Mary Landrieu (D-La.) for their leadership and advocacy for the bill. NAR urges President Obama to quickly sign the legislation into law.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
4 Million Renters Say They’re Eager to Buy
Ten percent of U.S. renters say they want to buy a home in the next year, according to a new survey of renters in the 20 largest housing markets by Zillow. That means if all the renters buy a home in the next year that would amount to about 4.2 million first-time home buyer sales – double the number of first-time buyers in 2013, CNBC reports.
The National Association of REALTORS® recently reported that the share of first-time home buyers has fallen to the lowest number on record since NAR began tracking it in 2008 – accounting for 26 percent of sales in January. Usually, first-time buyers make up about 40 percent of the market. (Read: Shut Out of the Housing Market? First-Timers Dwindle)
But more renters are showing an interest in the housing market, particularly as the housing market recovers and home prices rise. Renters showed the strongest home ownership aspirations in some of the places that were badly hit during the housing downturn, such as Miami, Atlanta, and Las Vegas.
“Even after a wrenching housing recession, this data shows that the dream of home ownership remains very much alive and well, even in those areas that were hardest hit,” says Stan Humphries, Zillow’s chief economist. “But these aspirations must also contend with the current reality, and in many areas, conditions remain difficult for buyers. The market is moving toward more balance between buyers and sellers, but it is a slow and uneven process.”
Source: “4 Million Renters Want to Buy. Can They?” CNBC (March 13, 2014)