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Double-Digit Gains for Home Prices in 2013

Home prices made double-digit gains in 2013, posting the highest annual rate of increase since 2005, according to CoreLogic’s latest housing report, released Tuesday. Ten states and the District of Columbia reached new all-time price peaks last year.

“We expect the rising prices to attract more sellers, unlocking this pent-up supply, which will have a moderating effect on prices in 2014,” says Mark Fleming, chief economist for CoreLogic.

CoreLogic’s latest report echoed an earlier report from the National Association of REALTORS® that showed a strong gain in home prices in 2013. The median sales price for all of 2013 was $197,100 in December, 11.5 percent above the 2012 median price, according to the National Association of REALTORS®’ December existing-home sales report.

December Existing-Home Sales Rise Strongest in Seven Years

But CoreLogic’s report showed that home prices have eased slightly the last three months. Home prices dropped by 0.1 percent from November to December, and the year-over-year price increase has slowed, the report says. CoreLogic’s report does not adjust for seasonal patterns.

Nevertheless, “the healthy and broad-based gains in home prices in 2013 help set the stage for the continued recovery in the housing sector in 2014,” says Anand Nallathambi, president and CEO of CoreLogic. “After six years of fits and starts, we can now see a clearer path to a durable recovery in single-family residential housing across most of the U.S.”

The following states had the highest home-price appreciation, including distressed sales, according to CoreLogic:

  • Nevada: 23.9%
  • California: 19.7%
  • Michigan: 14%
  • Oregon: 13.7%
  • Georgia: 12.8%

SOURCE: Realtor Magazine

VIDEO: Existing-Home Sales Fall But Prices Rise

 

Existing-home prices are continuing to edge up across the country, but sales aren’t keeping pace. Here are five key indicators for the housing market from the National Association of REALTORS® ‘latest existing-homes report, which reflects September data:

  1. Home prices: The median price nationally for an existing home in September was $199,200, up 11.7 percent from a year ago. Home prices have had 10 consecutive months of double-digit year-over-year increases.
  2. Home sales: Sales of existing single-family homes dropped 1.5 percent in September to a seasonally adjusted annual rate of 4.68 million. However, sales remain 10.9 percent above year-ago levels. Meanwhile, existing condo and co-op sales dropped 4.7 percent in September but are 8.9 percent above year-ago levels.
  3. Distressed homes: Foreclosures and short sales accounted for 14 percent of September sales. That’s up from 12 percent in August. A year ago, distressed home sales made up 24 percent of the market. “Lower levels in the share of distressed sales account for some of the growth in median prices,” NAR notes. In September, foreclosures were sold at an average discount of 16 percent below market value; short sales were being discounted by an average of 12 percent.
  4. Inventory: Housing inventory in September held steady, with a 5-month supply at the current sales pace. NAR’s report shows that 2.21 million existing homes were available for sale in September. For-sale inventory is 1.8 percent higher than a year ago.
  5. Days on the market: The median time on the market for all homes was 50 days in September, up from 43 days in August but down from 70 days a year ago. Short sales were on the market for a median of 93 days in September; foreclosures were at 43 days. NAR notes that 39 percent of homes sold in less than a month in September.

SOURCE: Realtor Mag.

REPORT: Home Prices At 5 Year High

Home prices rose in June to their highest levels in nearly five years, increasing 2.2 percent, according to the Case-Shiller Home Price Indices released Tuesday. The 20-city index was up 12.1 percent from a year earlier, and the companion 10-city index was up 11.9 percent.

Economists surveyed by Bloomberg had expected the 20-city index to increase 2.3 percent from May and 12.2 percent from a year ago.

Case-Shiller’s national index, reported quarterly by Standard & Poor’s, was up 7.1 percent in the second quarter to 146.32, its highest level since third quarter 2008.

All 20 cities included in the survey improved both month-to-month and year-to-year.

Hear_This-320The two surveys have improved monthly and yearly for 13 consecutive months.

The national index has improved in four of the last five quarters, dropping only in the fourth quarter of 2012 in that stretch. The 7.1 percent quarter-over-quarter matched the increase in the second quarter of 2012 as the largest quarterly improvement since the national index began in 1987.

The national index was up 10.1 percent year-over-year, matching the gain in the first quarter as the largest annual jump since the first quarter of 2006.

The 10-city index rose to 173.37, up 3.73 from May, to the highest it has been since August 2008 when it was 173.35. The 20-city index rose 3.41 to 159.54, its highest since September 2008 when it was 161.64

In the same month, according to the National Association of Realtors, the median price of an existing single-family home rose 5.4 percent, up 13.3 percent from a year earlier.

According to the NAR, homes prices were held back by sales of distressed homes. Foreclosures, eight percent of transactions, the NAR said, sold for an average discount of 16 percent below market value in June, while short sales, seven percent of transactions, were discounted 13 percent.

Home values improved as well despite higher mortgage rates, which could have both a positive and negative impact: rising rates themselves might bring prices down as buyers look for affordable monthly payments, but also increase demand as buyers try to lock in rates before further increases. The increased demand against weak inventories would send prices up.

While good news for home sellers, the continued sharp increases—the indices have shown double-digit year-year increases for four months in a row —are likely to revive concerns of a growing housing bubble as personal income growth continues to stagnate.

Still the increase in home values, according to economic theory, should mean improved consumer spending. The “wealth effect” theory holds that consumers spend based on increase in net worth, not income. Home values accounted for about 25 percent of the increase in net worth in the first quarter, according to the latest data from the Federal Reserve.

The Case-Shiller Indices have gone up for seven straight months and 13 times in the last 15; each index dipped last October and November.

The monthly increases were led by Atlanta, where prices rose 3.4 percent from May to June. The price index for Atlanta is at its highest level since July 2010. The price index rose 3.3 in June in Chicago, bringing prices there to their highest level since October 2010. Prices rose 2.8 percent each in San Diego and Las Vegas, while prices were up 2.7 percent in San Francisco.

Prices have increase for 16 straight months in San Francisco to the highest level since February 2008. Prices in Las Vegas have increased for 15 straight months and are at their highest level since February 2009.

Prices were up 1.8 percent in Phoenix, the 21st straight month-over-month gain, and 2.3 percent in Los Angeles, the 16th consecutive monthly improvement.

Year-over-year the price gains were led by Las Vegas, where prices were up 24.9 percent since June 2012 and San Francisco, where prices rose 24.5 percent in the last 12 months. Those year-over-year price increases were followed by Los Angeles, up 19.9 percent, Phoenix, up 19.8 percent, and Atlanta, up 19.0 percent.

Despite the June improvement, the 10-city index is down 234 percent from its June 2006 high of 226.29, and the 20-city index is off 22.7 percent from its July 2006 peak of 206.52.

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33 Day Market Time All Hallmark Listings Sold

Hallmark Idaho Properties in alliance with Cablela’s Trophy Properties is proud to announce that YTD for 2013, all company listings sold and closed had a market time of just 33 days from date of listing to contract sale date.

Utilizing a series of marketing strategies and systems, plus working hard at working with servicing other real estate agents within the local community has been essential in achieving such positive sales results.

While complying in the information is was also noted the many of the listed properties had multiple offers for sellers to choose from with many sales prices above the asking price.

If your considering selling and want results, give Hallmark a call!

208-928-SOLD

Residential Market Summary • April 2013

Below is a complete market summary for all residential properties listed and/or sold in the Sun Valley Idaho MLS

More detailed reports are available by request.

Sun Valley Idaho Residential Market Summary

US Home Prices Up 10.5 Pct. in Past Year – Idaho Ranks 4th

WASHINGTON — A survey shows U.S. home prices rose 10.5 percent in March compared with a year ago, the biggest gain since March 2006.

Core Logic, a real estate data provider, said Tuesday that annual home prices have now increased for 13 straight months. Prices are rising in part because more buyers are bidding on a limited supply of homes for sale.

Idaho ranked 4th at a 14.5 percent gain

Prices increased in 46 states over the past year — 11 of them posting double-digit gains. And when excluding distressed sales, which include foreclosures and short sales, prices rose in every state. A short sale is when a home sells for less than what is owed on the mortgage.

Nevada led all states with a 22.2 percent annual gain. It was followed by California (17.2 percent), Arizona (16.8 percent), Idaho (14.5 percent) and Oregon (14.3 percent).

Home prices also rose 1.9 percent in March from February, signaling a solid start to the spring buying season. And 88 of the 100 largest cities reported price gains compared with a year earlier, down slightly from 92 in February.

Prices in Phoenix rose 18.8 percent in March from a year earlier, the largest gain of any city. Los Angeles, Riverside, Calif., Atlanta and Houston posted the next largest gains.

Steady job creation and record-low mortgage rates have boosted home sales and construction in the past year. More demand, along with a limited supply of homes for sale, has pushed prices higher.

The number of homes for sale fell nearly 17 percent in March compared with a year ago. That supply would be exhausted in about 4.7 months at the current sales pace. That’s below the 6 months of supply that is typical in a healthy market.

Rising home prices can help sustain the housing rebound and lift the economy. More potential homebuyers may seek to purchase a house before prices rise further. And homeowners are more likely to put their houses on the market once they expect a good price.

Higher home values also boost Americans’ overall net worth. That can encourage consumers to spend more, driving more economic growth. Consumer spending accounts for roughly 70 percent of economic activity.

SOURCE: Associated Press

US Home Prices Rise Most Since May 2006

U.S. single-family home prices rose more than expected in February, posting their best annual increase since May 2006 in a fresh sign the housing recovery remains on track, a closely watched survey showed on Tuesday.

The S&P/Case-Shiller composite index of 20 metropolitan areas gained 1.2 percent on a seasonally adjusted basis compared to January, topping forecasts for 0.9 percent.

“Despite some recent mixed economic reports for March, housing continues to be one of the brighter spots in the economy,” David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said in a statement.

Prices in the 20 cities gained 9.3 percent year-over-year, also beating expectations for 9 percent and the biggest increase since May 2006.

On a non-adjusted basis, prices rose 0.3 percent.

“It is very strong, it’s a solid rebound, but I would not call it a bubble,” said Blitzer about housing on CNBC’s “Squawk on the Street.”

Still Blitzer said the overall economic picture does not look as strong as housing.

“This is not an all-time boom by any means, there is a lot of hesitancy and there are a lot of foreclosed houses out there so this is not 2006 all over again,” he added.

Adjusted prices have been rising since last February, the first year of gains since before the housing market’s collapse. The sector started to turn the corner in 2012, helped by tighter inventories and improved sales.

How the Case-Shiller Home Price Index Works

The S&P/Case-Shiller Home Price Index is one of those terms you hear a lot because it’s used to measure the health of the U.S. housing market—which hasn’t actually been healthy since the bursting of an enormous national and global real estate bubble in 2008.

While various government measurements also measure the housing market, the Case-Shiller Index is widely considered the most authoritative. CNBC explains.

What is the S&P/Case-Shiller Home Price Index?

The Case-Shiller Index (as it is commonly known), tracks changes in the value of residential real estate, both nationally and in 20 metropolitan regions.

It is composed of these separate indexes:

  • The national home price index, covering nine major census divisions.
  • The 10-city composite index
  • The 20-city composite index
  • 20 individual metro area indexes for each of the cities in the indexes above

Which cities that make up the indexes?

The Composite 10 Index cover Boston, Chicago, Denver, Las Vegas, Los Angeles, South Florida, New York, San Diego, San Francisco and Washington.

The Composite 20 Index includes those cities, plus Phoenix, Tampa, Fla., Atlanta, Detroit, Minneapolis-St. Paul, Charlotte, N.C., Cleveland, Portland, Ore., Dallas/Fort Worth and Seattle.

Who are Case and Shiller?

Karl E. Case is an emeritus economics professor at Wellesley College. Robert J. Shiller is an economics professor at Yale University.

How did the index get started?

In the 1980s, Case developed a method for comparing repeat sales of the same homes in an effort to study home pricing trends, using data from house sales in Boston—which at the time was in the midst of a housing boom.

Case argued that the boom was unsustainable, but he didn’t consider it a bubble, a commonly used term to describe similar market trends. (The Dutch Tulip Bubble of the early 1600s is the most popular example of a bubble.)

Eventually, Case collaborated with Shiller, who was researching behavioral finance and economic bubbles. In the late 1980s they created a repeat-sales index using home sales price data from cities across the country.

Then in 1991, Allan Weiss, studying for a graduate degree under Shiller, persuaded Case and Shiller to form a company, Case Shiller Weiss, to produce the index with the intent of selling the information to the markets.

Fiserv, an information management company, bought Case Shiller Weiss in 2002 and, together with Standard & Poor’s, developed tradeable indexes based on the data for the markets—now called the Case–Shiller Index. (Weiss went on to found Market Shield Capital in 2006.)

When is it published?

The indexes are published on the last Tuesday of each month, with a two-month lag.

Many of these price indexes—including 20 cities, low- medium- and high- tier home price indexes, condominium indexes and a U.S. national index—are managed by Standard & Poor’, and are available to the public on Standard & Poor’s web site. Options and futures based on the Case–Shiller index are traded on the Chicago Mercantile Exchange.

How do they come up with the indexes?

They use what is called the “repeat sales method,” analyzing data on single-family properties with two or more recorded sales transactions. The data are accumulated in rolling three-month periods to offset any delays in sales data recording and to keep sample sizes large enough.

For each sales transaction, a search is conducted to gather information on any previous sale of the same property. If an earlier transaction is found, the two are paired and considered a “repeat sales transaction.”

Each sales pair is examined to eliminate factors that might distort the calculations, including:

  • Transfers between family members
  • Substantial physical changes to the property
  • Transactions in which the property type designation has changed
  • Suspect data

Sales pairs with approved data are combined with all other sales pairs found in a particular Metropolitan Statistical Area (MSA) to create the regional MSA-level index. The Metro Area Indexes are then combined to create the national composite.

SOURCE: CNBC

Home sales edge up in ‘seller’s market’

Here is a reprint of an article posted on USA Today. While the article calls the market as a “Seller’s Market” what they don’t say is prices are still lower than what most Seller’s are hoping for. There is a lack of inventory, including the Sun Valley area, but it’s still a buyer’s market when it comes to final sales prices.

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Sales of previously owned homes edged up in January, held back by a shortage of homes for sale, according to the National Association of Realtors.

Single-family home sales increased 0.2% to a seasonally adjusted annual rate of 4.34 million in January vs. 4.33 million in December, and 8.5% above the 4 million-unit level in January 2012.

The median single-family home price was $174,100 in January, up 12.6% from a year ago.

Lawrence Yun , NAR chief economist, said tight inventory is a problem and, as a result, “We’ve transitioned into a seller’s market in much of the country.”

“Buyer traffic is continuing to pick up, while seller traffic is holding steady,” he said. “In fact, buyer traffic is 40% above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly.”

Homes available for sale at the end of January fell 4.9% to 1.74 million previously owned homes, a 4.2-month supply at the current sales pace, down from 4.5 months in December, and the lowest supply since April 2005, when it was also 4.2 months, the NAR said.

The inventory is 25.3% below a year ago, when there was a 6.2-month supply. The number of homes available for sale is at the lowest level since December 1999, when there were 1.71 million homes on the market, the Realtors said.

“We expect a seasonal rise of inventory this spring, but it may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth,” Yun said.

Sales rose in every region but the West.

Overall, sales of single-family homes, condos and townhouses were up 0.4% from December, at a seasonally adjusted annual rate of 4.92 million. That was up from a downwardly revised 4.90 million in December, and 9.1% above the 4.51 million-unit pace in January 2012.

Comprehensive “Year to Year” Sales Report

Want to know how the Sun Valley Real Estate market is really doing?

Attached is a link to a complete “Year to Year” report that details all activity in the Sun Valley Board of Realtors® MLS.

The report compares 2011 (all 12 months) with 2012

SaleReport2011-2012-500

 

Example of detail in report

Single Family Residential, Mid-Valley location

Last Year = 2011  This Year = 2012

Active Listings

Last Year:220  This Year: 197 Down 10%

New Listing

Last Year: 124   This Year: 90 Down 27%

Number Under Contract

Last Year: 24  This Year: 57 Up 137%

Number Sold

Last Year: 23  This Year: 48 Up 108%

Sold Volume

Last Year: $29,625,511  This Year: $45,687,876 Up 54%

Average Sale Price

Last Year: $1,288,066  This Year: $951,831 Down 26%

Percent of List

Last Year: 92%  This Year: 93% Up 1%

Click to View Report