Tag Archives: Home Sales

Housing starts plunged 8.5 percent in January to a seasonally adjusted annual rate of 890,000, the Census Bureau and HUD reported jointly.

Led by a sharp drop in the South, builder confidence slipped in February to 46--the lowest level since November--the National Association of Home Builders (NAHB) reported Tuesday. Economists had expected the Housing Market Index (HMI), a measure of confidence, would improve to 48 from January's reading of 47. Nationally, two of the three index components--current single-family sales and buyer traffic--declined, while the assessment of sales for the next six months edged up.

Capital Economics recently explored concerns that particular states are seeing "unsustainable, investor-fueled" increases.

Redfin's Real-Time Price Tracker, which tracks prices, sales, and inventory, shows home sales were up in January 12 percent year-over-year.

Well housing activity remains near historical lows, Freddie Mac is taking a more optimistic view: There's still plenty of room to grow. This glass-half-full viewpoint was reflected in the GSE's forecast for housing in 2013, especially for housing starts, which are projected to increase to 950,000 units this year--22 percent higher than 2012 levels. The GSE also expects prices to increase 3 percent in 2013 and 2014, while sales are forecast to rise to an annual rate of 5.45 million and 5.80 million, respectively.

In his State of the Union address, President Obama acknowledged the progress that has been made in the housing market with rising prices, increasing home purchases, and an uptick on construction. However, "even with mortgage rates near a 50-year low, too many families with solid credit who want to buy a home are being rejected," he said. Obama also proclaimed his support for expanding access to refinancing, calling on Congress to pass a refinance bill currently in the pipeline.

According to the NAR, the depleting share of lower-priced homes is contributing to price growth as distressed sales--foreclosures and short sales--diminish. The association found the national median price for an existing single-family home rose to $178,900 in Q4, up 10 percent from the fourth quarter of 2011. The increase marks the biggest year-over-year gain since the fourth quarter of 2005, when the median price was up 13.6 percent. Existing-home sales improved as well in Q4, rising to a seasonally adjusted annual rate of 4.90 million.

While some take it as a good sign that housing starts are again on the rise and construction is making a small comeback, some might cautiously wonder if the market is ready to handle an increase in construction and if we aren't headed for a repeat of the overbuilding that contributed to the past housing boom and bust. The Census Bureau reports new home sales have risen 9 percent over the past year, while housing starts have risen by a much higher 37 percent. However, Capital Economics insists the imbalance is actually not unusual.

The number of homes purchased with cash in California reached an all-time high in 2012 as the mortgage environment kept other interested buyers out, according to DataQuick, a real estate information service. The company's data shows a total of 145,797 condos and houses were bought without mortgage financing in 2012, up from 125,812 in 2011 (the previous high) and 39,731 in 2007. According to DataQuick's John Walsh, the increase comes from high investor interest and a currently difficult mortgage environment.

Homebuyer interest got off to a strong start in 2013, according to Redfin's Real-Time Demand Pulse for February.