Tag Archives: Home Sales

The juice that will fuel the economic recovery is housing, or more specifically, new home sales, Freddie Mac stated in its economic and housing market outlook report for May.

Redfin's monthly report--based on home prices, sales, and inventory across 19 U.S. markets--shows prices rose 4.9 percent in April on a monthly basis and 16.1 percent on a yearly basis. Out of the 19 metros measured in Redfin's report, 18 reported month-over-month increases in April. "The housing market across the nation was hot again in April. Yes, home prices are up. But the big story in this month's report is that inventory posted its largest month-over-month increase in over three years," wrote Redfin blogger Tim Ellis.

According to RE/MAX's data, taken from a survey of multiple listings service (MLS) data from 52 U.S. metro areas, the months' supply of homes for sale at the April's sales pace was 3.6 months--the lowest supply since the National Housing Report began in August 2008. However, the company observed a monthly increase in April in the overall number of homes for sale--the first since June 2010. In addition, the year-over-year percentage drop in inventory was 26.6 percent, the lowest annual drop in the last 12 months.

New home sales have seen a slow recovery since reaching a trough in 2011, but the recent pickup demonstrates how underlying economic fundamentals are improving.

While competition over available homes remains fierce in many areas around the country, the latest Bidding War Report from Redfin shows some markets cooled off a bit in April.

When the Federal Open Market Committee completed its two-day meeting at the beginning of May, it issued the usual six-paragraph post-meeting statement.

Home sales declined in March, but demand for mortgage credit increased, according to the US Housing Market Monthly from Capital Economics. Recently, the Fed reported an increase in home purchase applications in April, and credit "loosened a touch," the report stated. The firm maintains an overall positive outlook on the market despite the small decline in March sales and quashes any concerns of another bubble forming. In fact, Capital Economics calculated it could take "until 2017 for housing to return to fair value."

As the housing market experiences a burgeoning recovery with rising prices, an uptick in sales, and an increase in housing starts, Federal Reserve Governor Elizabeth A. Duke points out purchase-originations remain "subdued," especially among individuals with less than stellar credit scores. While originations are down across the board, "[t]he drop in originations has been most pronounced among borrowers with lower credit scores," Duke said at the Housing Policy Executive Council Thursday in Washington, D.C.

The latest quarterly report from the National Association of Realtors (NAR) shows home purchasing power remained high in the first quarter even as median prices continued their upward trend. Nationally, the median existing single-family home price was $176,600, up 11.3 percent year-over-year--the strongest yearly price increase since the fourth quarter of 2005, when the national median price jumped 13.6 percent over the prior year.

A shortage of homes on the market hamstrung home touring activity in April, but buyers still seem determined to get their offers in, according to Redfin. The brokerage's Real-Time Demand Pulse--a monthly analysis of tour and offer activity from homebuyers across 20 U.S. markets--shows tour requests and signed offers posted stronger monthly gains in April than they did at the same time last year. However, a lack of available homes "softened touring strength somewhat."