Home prices: Biggest rise since housing bubble - CNN Money

http://money.cnn.com/2013/03/26/news/economy/housing-recovery/index.html?source=linkedin

Home prices continued their recovery, rising 8.1% in January, although a separate report showed a slight slowdown in new-home sales.

The S&P Case-Shiller index, which tracks the 20 largest markets in the nation, showed the biggest year-over-year gain in prices since June 2006.

"This marks the highest increase since the housing bubble burst," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.

In a separate government report Tuesday, new homes sold at a 411,000 annual rate in February, down nearly 5% from the January sales pace but up 12% from year-earlier levels. The typical price of a new home sold in the month was $246,800, up about 3% from both the January and a year earlier.

Joseph LaVorgna, chief U.S. economist for Deutsche Bank, said that bad weather in February could be partly responsible for the slowdown in sales. But he said market fundamentals suggest that the market for new-home sales should remain strong.

"Despite the pullback in sales in February, the uptrend in housing remains clearly intact," he said. He is forecasting even stronger sales in the second half of this year.

The Case-Shiller report shows the recovery in home prices is widespread. All 20 markets posted a year-over-year gain, and the pace of increase picked up in every market except Detroit.

Some of the markets hurt the most by the bursting of the housing bubble have enjoyed the biggest gains, led by a 23% rise in Phoenix. Prices were also up more than 10% in San Francisco, Las Vegas, Detroit, Atlanta, Minneapolis, Los Angeles and Miami, all markets that had been hit hard by foreclosures.

New York posted the smallest rise, up only 0.7%.  Even with the recent rise in home prices, the overall index is down 28.4% from the 2006 peak.  But experts say they see a lot of strength in the current market.

"The market still has a long way to go nationally, but the healing process -- and a return to a normalized housing market -- is definitely well underway," said Jim Baird, chief investment officer for Plante Moran Financial Advisors.

Home prices have been helped in recent months by a number of factors, including tight inventory of homes available for sale, near record-low mortgage rates and a drop in homes in foreclosure. A decline in unemployment is also helping the housing recovery.

The housing recovery itself is helping support overall economic growth, as builders scramble to hire workers to meet the renewed demand. The lift goes beyond the impact of increased construction on the economy, as the rise in home prices lifts household wealth.

Rising home prices also reduce the number of people owing more on their mortgages than their homes are worth. That, in turn, can help them to refinance those loans at a lower rate, freeing up money to spend on other goods and services. 

Fannie Mae: Housing Recovery 'More Robust' Than Anticipated

Fannie: Housing Recovery 'More Robust' Than Anticipated

Fannie Mae economists say that “the broadening housing recovery could very well be more robust” than they anticipated, according to the mortgage giant’s lately monthly economic outlook report.

Low inventories of homes for sale are contributing to rapid price increases all across the country, which are expected to continue throughout this year.

Fannie Mae economists predict that existing-home prices will rise 5.1 percent in 2013, reaching a median $186,000. They also predict home prices will increase another 3.8 percent in 2014, reaching $193,000.

New-home prices are expected to rise 4.1 percent in 2013 to a median of $254,000, followed by a 3.5 percent rise in 2014 to $263,000, according to Fannie Mae’s report.

However, higher-than-expected price jumps mixed with a shortage of for-sale houses could constrain existing-home sales this year and next, according to the economists.

Existing-home sales were up 9.4 percent last year, but Fannie economists predict sales to lessen that pace, growing by 6.9 percent this year and 5.5 percent in 2014. Sales of new single-family homes, however, are expected to post an 18 percent gain this year and a whopping 35.8 percent by 2014.

The economists say that 2016 should be the year where housing activity returns to “normal.”

As home prices rise, Fannie economists say they expect that will encourage more banks to ease up on the tight lending conditions, which have been one of the major barriers in returning to a more “normal” housing market.

New Home Sales Edge Higher-CNN Money

New-home sales edged higher in March, the latest sign that the housing recovery is here to stay.

New homes sold at an annual pace of 417,000 in the month, a gain of only 1.5% rise from February but an 18.5% jump compared to a year earlier. The supply of new homes on the market remained relatively tight, as only a 4.4 month supply of homes are available at the current sales pace. Recent months have seen improvement in a number of market fundamentals that have lead to a recovery in housing. Those factors include a drop in foreclosures, near record-low mortgage rates, rising home prices and a drop in unemployment. All are helping to bring more buyers back into the market.

To read full article:

http://money.cnn.com/2013/04/23/news/economy/new-home-sales/index.html?iid=SF_E_LN

Tight Inventories Spark California Home Price Boom

Excerpt:

 A sudden surge in single family home prices in California coupled with flat sales are both attributed by the California Association of Realtors® (C.A.R.) to a scarcity of available homes for sale, especially in the lower price ranges.  The median price is at a five year high after an unprecedented spike in March. 

"No doubt the dearth of home listings is driving the upsurge in the median price, as is an increase in sales in the higher-priced segments," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.   "Sales of homes priced $500,000 and higher are up more than 34 percent from last year, and have been on a rising trend since early 2012. Sales growth in the coastal regions - Marin, Orange, San Diego, and San Luis Obispo, in particular - helped push the statewide median price up to the highest level in more than four years."

To read the full article, click here: 

http://www.mortgagenewsdaily.com/04152013_california_home_sales.asp

March 2013 Sales Statistics - Source: Realtors Association of Maui

This is a summary - for the full report click here: March 2013 Statistics - Realtors Association of Maui

March’s Residential sales rose to 79 homes sold, while Condo Sales were steady at 101 units sold. Land sales rose to 25 lots sold.

March's Median SALES prices –The Residential home median price declined to $508,000, while the Condo median price increased to $375,000. Land median price came in at $535,000. 

 

Days on Market for Residential homes = 110, Condos = 137 DOM, Land = 263 DOM. 

 

"Year to Date Sales" numbers only compare January-March 2013 to January-March 2012.  Year to Date: Residential unit sales decreased slightly (208 homes sold / -2 units / -1% change YTD), average sold price = $761,373 (+4%YTD), median price = $517,500 (+17%YTD) and total dollar volume sold = $158,365,558 (+3%YTD). Condo unit sales decreased (264 units / -40 units / -13%YTD), average sold price = $527,834 (+20%YTD), median price = $368,950 (+9%YTD). Total Condo dollar volume sold = $139,348,151 (+4% YTD). Land lot sales increased (45 lots / +2 units / +5% YTD), average sold price = $724,809 (+44%), median price = $535,000 (+34%), Total dollar volume = $32,616,385 (+51% YTD).

Total sales for immediate past 12 months: Residential = 935 (with 29.9% being REO or Short Sale), Condo = 1,213 (17.7% REO or SS), Land = 175 (16% REO or SS). 

 

Current Absorption Rate base on this month’s Active/Pending-Continue to Show/Contingent status inventory divided by March Sales is: Residential = 8.3 months, Condo = 9.2 months, Land = 16.3 months of inventory.

Inventories have declined 14-16% over the past 12 months in Residential and Condo classes. REO (Foreclosures) and Short Sales are dwindling, with any “hidden inventory” (or overhang) backlog slowly trickling onto the market. Mortgage Interest Rates are still near historic record lows which may help motivate would-be Buyers to go ahead and buy IF they can qualify. As prices rise, some “Owners” will decide to become “Sellers.”

The home bidding wars are back! - CNN Money

The Bidding Wars Are Back!

NEW YORK (CNNMoney)

The bidding wars are back. Seemingly overnight, many of the nation's major housing markets have gone from stagnant to sizzling, with for-sale listings drawing offers from a large number of house hunters.

In March, 75% of agents with broker Redfin said their clients' offers were countered by rival bids, up from 56% who said so in late 2011. The competition has been most intense in California, where 9 out of 10 homes sold in San Francisco, Sacramento and cities in Southern California drew competing bids during the month. And at least two-third of listings in Boston, Washington D.C., Seattle and New York generated bidding wars.

"The only question is not whether a new listing will get multiple bids but how many it will get," said Kris Vogt, who manages 14 Coldwell Banker offices in the Sacramento area. One home in an Elk Grove, Calif., subdivision recently received 62 separate bids. The final sale price was for more than $150,000, well above its $129,000 asking price.

In Cambridge, Mass., two condos that could be combined into one large home hit the market two weeks ago for $800,000 each, according to Pat Villani, president of Coldwell Banker Residential Brokerage in New England.

"The brokers stopped taking names after the number of bidders reached 250," she said. The winning bidder offered $2 million for both units.

Homebuyers eager to purchase before home prices and mortgage rates rise are finding few homes for sale as sellers hold out for better deals, said Glenn Kelman, Redfin's CEO.

Many homeowners are still underwater, owing more on their mortgages than their homes are worth, and they want to wait until selling becomes profitable again. By doing so, they can avoid short sales, which carry big hits on credit scores, 85 to 160 points, according to FICO. 

"Many people have been holding on for a profit and they're just now getting their heads above water," said Kelman.

Those who want to sell and buy a new home are encountering a market where it's difficult to find a new place of their own, said Vogt.


Over the past few months, Jackie and Cliff Kaufman have bid on four different homes in St. Petersburg, Fla., including one short sale and a foreclosure. The pair, who have two adult children and run an online jewelry business, said they bid $5,000 more than the $495,000 asking price on the first home they had their eye on and never heard back from the seller's agent. They were later told the house sold for nearly $550,000.  Next, they bid on a short sale listed for $600,000. This time, they came in $10,000 above the asking price and again, they were beaten out. The house was only on the market for two days. The third attempt to make an offer on a bank-owned property was also met with silence.

 "It was very frustrating," said Jackie Kaufman. "We felt we were always on the outside of the loop and that people who won the homes had the inside track."  By the fourth try, the couple successfully bid through a listing agent, who they believe pushed their bid harder in order to earn a double commission since she was representing both the buyer and seller in the deal. And they managed to get the place for $30,000 less than the asking price.

They were lucky. Inventories of homes for sale continue to shrink. In February, the National Association of Realtors reported a 19.2% decline in inventory year-over-year. While the number of homes for sale should rise with the onset of the spring selling season, housing inventory is expected to remain low, pushing prices higher.

And new home construction, especially in markets hit hard by the housing bust, is still moving forward at a snail's pace, since the cost to build the homes is often more than what the property ends up selling for, said Jeff Culbertson, president of Coldwell Banker's Southern California operations.


Even though home prices are on the rise, the balance between buyers and sellers has been thrown off balance, said Kelman.

"With buyers out in force and sellers cautious, the market is in an awkward 'tweener' phase," he said. 

February 2013 Sales Statistics - Source: Realtors Association of Maui

February’s Residential sales rose slightly to 65 homes sold, while Condo Sales jumped to 100 units sold. Land sales rose to 12 lots sold.  NOTE: Condos exhibited a big 2012 year-end rush (possibly due to then-pending 2013 tax changes), yet the average of Dec. ’12 and Jan. ’13 is a normal looking 100 units per month.

February's Median SALES prices –The Residential home median price held steady at $550,000, while the Condo median price increased substantially to $364,950. Land median price declined to $575,000

Days on Market for Residential homes = 149, Condos = 184 DOM, Land = 273 DOM.

(General DOM Note: this is the average DOM for the properties that SOLD. If predominantly OLD inventory sells, it will move this indicator upward, and vice versa. RAM's Days on

Market are calculated from List Date to Closing Date [not contract date], including approximately 60 days of escrow time.) 

"Year to Date Sales" numbers only compare January-February 2013 to January-

February 2012. Short timeframe (monthly) views do not necessarily reflect the longer

timeframe trends.  For a more comprehensive view, compare to 2012's Year-End (Dec. 2012) figures available at: 

http://www.ramaui.com/UserFiles/File/Stats/All-December2012.pdf

Total sales for immediate past 12 months: Residential = 937 (with 31.8% being REO or Short Sale), Condo = 1,241 (18.9% REO or SS), Land = 174 (16% REO or SS).

Current Absorption Rate base on this month’s Active inventory divided by February Sales is:

Residential = 9.9 months, Condo = 9.6 months, Land = 35.6 months of Active inventory.

What's going on...
 

Increased showings and sales, multiple offers on “well priced” listings, hesitant buyers become onlookers...... 

Window of opportunity may be closing for first-time homebuyers...

Well priced properties are attracting multiple offers making for a quick sale...

Inventories have declined 16-16% over the past 12 months in Residential and Condo classes...