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VIDEO: November Existing-Home Sales &Prices Maintain Upward Trend

WASHINGTON (December 20, 2012) – Existing-home sales continued to improve in November with low inventory supply pressuring home prices, according to the National Association of Realtors®.

Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 5.9 percent to a seasonally adjusted annual rate of 5.04 million in November from a downwardly revised 4.76 million in October, and are 14.5 percent higher than the 4.40 million-unit pace in November 2011. Sales are at the highest level since November 2009 when the annual pace spiked at 5.44 million.

Lawrence Yun , NAR chief economist, said there is healthy market demand. “Momentum continues to build in the housing market from growing jobs and a bursting out of household formation,” he said. “With lower rental vacancy rates and rising rents, combined with still historically favorable affordability conditions, more people are buying homes. Areas impacted by Hurricane Sandy show storm-related disruptions but overall activity in the Northeast is up, offset by gains in unaffected areas.”

Home Sales For Homes $750,000+ Are Up 50%

The national median existing-home price2 for all housing types was $180,600 in November, up 10.1 percent from November 2011. This is the ninth consecutive monthly year-over-year price gain, which last occurred from September 2005 to May 2006.

Distressed homes3 – foreclosures and short sales sold at deep discounts – accounted for 22 percent of November sales (12 percent were foreclosures and 10 percent were short sales), down from 24 percent in October and 29 percent in November 2011. Foreclosures sold for an average discount of 20 percent below market value in November, while short sales were discounted 16 percent.

“The market share of distressed property sales will fall into the teens next year based on a diminishing number of seriously delinquent mortgages,” Yun said.

Total housing inventory at the end of November fell 3.8 percent to 2.03 million existing homes available for sale, which represents a 4.8-month supply 4 at the current sales pace; it was 5.3 months in October, and is the lowest housing supply since September of 2005 when it was 4.6 months.

Listed inventory is 22.5 percent below a year ago when there was a 7.1-month supply. Raw unsold inventory is now at the lowest level since December 2001 when there were 1.89 million homes on the market.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 3.35 percent in November from 3.38 percent in October; the rate was 3.99 percent in November 2011.

NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif., said there’s been speculation of a rise in short sales before the end of the year with pending expiration of the Mortgage Forgiveness Debt Relief Act. “However, there’s been no movement in short sales, their market share is staying in a narrow range, and they’re still taking much longer to sell – typically three months,” he said.

“The fact remains it is extremely difficult to expedite a short sale, and banks’ response to client urgency is only starting to improve. However, we’re hopeful that the act will be extended before it expires on December 31 so sellers don’t have to pay taxes on forgiven mortgage debt, which would be unfairly treated as income for owners who are selling under duress,” Thomas said.

The median time on market for all homes was 70 days in November, slightly below 71 days in October, but is 28.6 percent below 98 days in November 2011. Thirty-two percent of homes sold in November were on the market for less than a month, while 20 percent were on the market for six months or longer; these findings are unchanged from October.

First-time buyers accounted for 30 percent of purchases in November, down from 31 percent in October and 35 percent in November 2011.

All-cash sales were at 30 percent of transactions in November, up slightly from 29 percent in October and 28 percent in November 2011. Investors, who account for most cash sales, purchased 19 percent of homes in November, little changed from 20 percent in October; they were 19 percent in November 2011.

Single-family home sales rose 5.5 percent to a seasonally adjusted annual rate of 4.44 million in November from 4.21 million in October, and are 12.4 percent higher than the 3.95 million-unit level in November 2011. The median existing single-family home price was $180,600 in November, up 10.1 percent from a year ago.

Existing condominium and co-op sales jumped 9.1 percent to an annualized level of 600,000 in November from 550,000 in October, and are 33.3 percent above the 450,000-unit pace a year ago. The median existing condo price was $181,000 in November, which is 10.6 percent higher than November 2011.

Regionally, existing-home sales in the Northeast rose 6.9 percent to an annual rate of 620,000 in November and are 14.8 percent above November 2011. The median price in the Northeast was $232,900, down 2.0 percent from a year ago.

Existing-home sales in the Midwest increased 7.2 percent in November to a pace of 1.19 million and are 21.4 percent higher than a year ago. The median price in the Midwest was $141,600, which is 7.0 percent above November 2011.

In the South, existing-home sales rose 7.9 percent to an annual level of 2.04 million in November and are 17.2 percent above November 2011. The median price in the South was $157,400, up 10.5 percent from a year ago.

Existing-home sales in the West rose 0.8 percent a pace of 1.19 million in November and are 4.4 percent higher than a year ago. With ongoing inventory constraints, the median price in the West was $248,300, which is 23.9 percent above November 2011.

SOURCE: National Association of Realtors

 

Sun Valley Price Range YTD Sales Report

Sale Report for properties in Blaine County Idaho

This report is one of the key reports the National Association of Realtors® uses to track housing sales activity for residential and condos.

1212PriceSalesReport600

Sun Valley Market Update YTD

Short Sales Make Up Bigger Share of Market

More lenders and home owners are viewing short sales as a better alternative than foreclosure. Reversing a trend in the third quarter, pre-foreclosure sales are now outnumbering sales of bank-owned properties.

Pre-foreclosure sales accounted for about 22 percent of all residential sales in the third quarter, according to the latest data from RealtyTrac. Distressed sales, in general, accounted for about 41 percent of the market share in the third quarter — still a significant make up of the real estate market.

“The shift toward earlier disposition of distressed properties continued in the third quarter as both lenders and at-risk home owners are realizing that short sales are often a better alternative than foreclosure,” says Daren Blomquist, vice president of RealtyTrac.

Short sales increased 15 percent in the third quarter over the previous quarter, according to RealtyTrac.

Pre-foreclosure properties sold for, on average, $191,025 in the third quarter — a 3 percent drop from the second quarter.

The discounts are still big for potential buyers: In the third quarter, the average sales price of a pre-foreclosure property was 27 percent below the average sales price of a non-foreclosure residential property, RealtyTrac reports.

SOURCE: National Association of Realtors®

Case-Shiller Indices Up in September, Momentum Slows

Despite another month of home price improvement, the housing sector faltered in September as prices fell five of the 20 cities in the monthly Case Shiller Home Price Index, Standard & Poor’s reported Tuesday.

The month-month September gain was weaker than in August when prices rose in all cities surveyed

The 10-city index increased 0.3 percent from August to 158.93, its highest level since September 2010, the 20-city index rose by the same 0.3 percent to 146.22, also the highest in two years and the national index improved 2.2 percent in the third quarter to135.67 its highest level since 3Q 2010.

Economists had expected a slightly faster, 0.4 percent, month-month improvement.

Prices had increased in 19 of the 20 cities in July and August and in all 20 cities in May and June. The quarterly report on prices nationally also showed a deceleration: the 2.2 percent 3Q gain was down sharply from the 7.1 percent jump in the second quarter.

The 10-city index showed a 2.1 percent year-year gain and the 20-city index was up 3.0 percent from September 2011, according to Case Shiller.

According to the National Association of Realtors, the median price of an existing single family dropped 3.6 percent in September, but was up 7.9 percent from September 2011.

The improvement in the Case Shiller indices – both the 10- and 20-city have risen month-month for the last six months – has been increasingly weaker. In the preceding five months, the improvement in the 10-city index averaged 2.4 percent and in the 20-city index averaged 2.3 percent.

Prices dropped in September in five cities led by 0.9 percent decline in Cleveland, 0.6 percent decline in each of Boston and Chicago, a 0.3 percent drop in Charlotte, NC and a 0.1 percent dip in New York. All of those cities showed price gains August. (Pinning them to an electoral map, only Cleveland is in a “swing state,” Ohio, which was carried by President Obama.

The cities in which prices improved month-month were led by Las Vegas and San Diego, each of which showed a 1.4 percent gain. Prices in Las Vegas had improved 1.6 percent in August and in San Diego 0.9 percent, Prices rose 1.1 percent in September in Phoenix and Minneapolis compared with 1.8 percent and 1.2 percent increases, respectively, in August.

Year over year prices improved in 18 of the 20 cities in September, compared with year-year gains in 17 of the 20 cities in August.

Prices were down year-year in September in New York, 2.3 percent matching the 12-month drop registered in August, and down 1.5 percent in Chicago which had shown a 2.6 percent month-month drop in August.

Year-year price gains were led by Phoenix, 20.4 percent, Minneapolis, 8.8 percent, Detroit 7.6 percent San Francisco, 7.5 percent, and 7.4 percent, Minneapolis.

Even with the increases, the 10-year index remains down 29.8 percent from its June 2006 peak and the 20-year index is down 29.2 percent from its July 2006 peak.

 

YTD Sales Report – All Areas In Sun Valley MLS

Attached is a year to date sales report that shows all sales activity in the greater Sun Valley area for single family residential homes, condos and townhomes, vacant land, plus farms and ranches.

As always, more information is available by request.

INTERACTIVE SALES MAP: Metropolitan Sales Areas Q2 2012

What’s Your Market’s Median Home Price?

Click on your metropolitan statistical area to get the latest quarterly median home price for your market, and its percentage change from the previous year.


View Metropolitan Sales Area Q2 2012 in a larger map

This housing data is provided by the Research division of the National Association of REALTORS®.

US Existing Home Sales Jump to 2-Year High

The pace of U.S. home resales rose in August to its fastest in over two years and groundbreaking on new homes also climbed, hopeful signs that a budding housing market recovery is gaining traction.

The National Association of Realtors said on Wednesday that existing home sales increased 7.8 percent last month to an annual rate of 4.82 million units last month.

That was the fastest annual rate since May 2010 and well above analysts’ expectations of a 4.55 million-unit rate.

While the broader U.S. economy appears to be losing steam, housing has gained traction and has become a relative bright spot.

“Today’s data are another indication of improvement in the U.S. housing market which, for really the first time post-recession, is becoming a positive for economic growth,” said Andrew Grantham an economist at CIBC World Markets in Toronto.

Nationwide, the median price for a home resale rose to $187,400 in August, up 9.5 percent from a year earlier as fewer people sold their homes under distressed conditions.

The nation’s inventory of homes — those for sale on the market — rose 2.9 percent during the month to 2.47 million.

The price increase is measured against August 2011, and since then distressed sales have fallen to 22 percent of total sales from 31 percent. Distressed sales also fell in August of this year compared to the prior month.

U.S. stocks edged higher following the existing home sales data, while prices of U.S. government debt trimmed gains.

A separate report from the Commerce Department showed U.S. housing starts rose last month to a seasonally adjusted annual rate of 750,000 units. That was less than expected, as groundbreaking on multifamily home projects fell. Still, the trend in housing starts continued to point to recovery and many economists think home building will boost economic growth this year for the first time since 2005.

Starts were up 2.3 percent from the prior month. July’s starts were revised to show a 733,000-unit pace instead of the previously reported 746,000.

Economists polled by Reuters had forecast groundbreaking in residential construction rising to a 765,000-unit rate. Compared to August last year, residential construction was up 29.1 percent.

“We continue to see positive signs emerging from the housing market, suggesting that the entire market, not just individual submarkets, are stabilizing and steadying themselves for future growth,” said John Tashjian, Principal at Centurion Real Estate Partners in New York.

Housing starts are now a third of their 2.27 million-unit peak in January 2006. The housing market, the Achilles heel of the recovery from the 2007-09 recession, is on the mend.

Sales have been creeping up and the house price decline has bottomed, with a tightening supply of properties on the market raising prices in some metropolitan areas. In addition, home-builder sentiment touched a six-year high in September.

Though residential construction accounts for only about 2.5 percent of GDP, economists estimate that for every new house built, at least three new jobs are created.

A Missing Piston

The Federal Reserve moved last week to bolster the economy, announcing it would buy $40 billion in mortgage-backed securities per month until the outlook for employment improved significantly.

The Fed said it hoped the purchases would in part help to unstick a housing sector that Fed Chairman Ben Bernanke called “a missing piston” in the U.S. recovery.

Analysts believe the third round of bond purchases, dubbed QE3 on Wall Street, will support the housing market.

“Now it’s up to the banks to stop sitting on their hands and start lending. While rates are at historical lows, borrowers still have a very difficult time accessing the mortgage markets,” said Tashjian.

A separate report from the Mortgage Bankers Association showed applications for loans to buy homes fell last week, but record low mortgage rates boosted demand for refinancings.

Last month, groundbreaking for single-family homes, the largest segment of the market, rose 5.5 percent to a 535,000-unit pace — the highest level since April 2010. Starts for multi-family homes fell 4.9 percent.

Building permits slipped 1 percent to a 803,000-unit pace in August after surging the prior month to the highest in four years. July’s permits were unrevised at 811,000 units. Economists had expected permits to fall to a 796,000-unit pace.

SOURCE: CNBC

July Home Prices See Biggest Monthly Jump Since 2006 – Idaho # 2

Home prices in the U.S. enjoyed the largest annual increase in July that they had in six years, increasing 3.8 percent from prices in July 2011.  CoreLogic, in releasing its July Home Price Index (HPI) which also includes sales of distressed properties, noted that July’s prices were also up from the previous month, increasing 1.3 percent.  This was the fifth consecutive month that the Index had increased on both an annual and month-over-month basis.

When distressed sales, transactions involving homes that have been foreclosed into bank ownership (REO) or are in some stage of foreclosure, are excluded from the figures CoreLogic’s HPI rose 4.3 percent from July 2011 and was up 1.7 percent month-over-month.  This was also the fifth consecutive month-over-month increase.

Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to July 2012) was -27.2 percent.  Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -20.2 percent.

The five states with the highest annual appreciation rate including distressed sales were Arizona (+16.6 percent), Idaho (+10.0 percent), Utah (+9.3 percent), South Dakota (+8.3 percent), and Colorado (+7.3 percent.)  With distressed sales excluded the best performance was still in Arizona (11.3 percent) followed by Utah (+10.5 percent), Montana (+9.1 percent), South Dakota (+8.6 percent), and North Dakota (+6.9 percent.)

Overall depreciation was highest in Alabama (-4.6 percent), Delaware (-4.8 percent), Rhode Island (-2.2 percent), and Connecticut and Illinois, each at -1.7 percent, With distressed sales excluded prices fell 3.5 percent in Delaware, 2.4 percent in Alabama, 1.2 percent in New Jersey and were down fractionally in Virginia and Connecticut.

Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 23 are showing year-over-year declines in July, four fewer than in June.

CoreLogic predicts that prices will show an even faster rate of appreciation in its August report with an expected annual increase of 4.6 percent including distressed sales and 6.0 percent for market rate sales.  The July to August changes for the distressed and the non-distressed indices are expected to be +0.6 percent and +1.3 percent respectively.  The Pending HPI is based on Multiple Listing Service data that measures price changes in the most recent month.

“It’s been six years since the housing market last experienced the gains that we saw in July, with indications the summer will finish up on a strong note,” said Anand Nallathambi, president and CEO of CoreLogic.  “Although we expect some slowing in price gains over the balance of 2012, we are clearly seeing the light at the end of a very long tunnel.”

 “The housing market continues its positive trajectory with significant price gains in July and our expectation of a further increase in August,” said Mark Fleming, chief economist for CoreLogic. “While the pace of growth is moderating as we transition to the off-season for home buying, we expect a positive gain in price levels for the full year.”

MONTHLY SALES REPORT: August 2012 Sun Valley Idaho Area

Attached is a monthly sales report that shows all sales activity in the greater Sun Valley area for single family residential homes, condos and townhomes, vacant land, plus farms and ranches.


As always, more information is available by request.