Jul 24, 2013 | FHFA
According to the National Association of REALTORS®, national sales of existing homes in June came in at 5.08 million.
June’s reading was reported to be the second highest since November of 2009; this should calm concerns about a lapsing recovery in housing markets.
Summer typically produces the highest prices for existing homes sold, as families seeking larger homes frequently move during summer months.
The June inventory of existing homes improved by 1.90 percent to 2.19 million homes or a 5.20 month supply. June’s number of available homes was 7.60 percent lower than in June 2012.
The shortage of available homes has been causing buyers to turn from existing homes to new homes in areas where both available homes and/or land for new construction are in short supply.
Average Home Prices Continue Their Climb Nationally
So the news of more existing homes for sale is good news for home buyers and housing markets that have been held back by an excess of buyers seeking a short supply of available homes.
NAR chief economist Lawrence Yun noted that inventories of existing homes are expected to “broadly favor sellers and contribute to above-normal price growth.”
This trend was supported by June’s national average price for existing homes at $214,200, which represented a year-over-year increase of 13.5 percent. Rising home prices and mortgage rates continue creating financial challenges for first-time buyers and others seeking affordable home prices and mortgage loans.
Distressed home sales were down from 18 percent in May to 15 percent in June; this is the lowest market share since tracking began in 2008. June sales of distressed homes were significantly lower than in June 2012’s reading of 26 percent of existing homes sold.
The National Association of REALTORS® noted that falling levels of distressed sales are contributing to higher prices for existing homes.
FHFA Reports Home Prices Rise In May
The Federal Housing Finance Agency (FHFA) reported Tuesday that prices for homes financed by Fannie Mae and Freddie Mac rose by 0.70 percent in May as compared to April’s downwardly revised 0.50 percent increase in home prices.
According to the FHFA Housing Price Index (HMI), home prices were up by 7.30 percent year-over-year in May, and are roughly equal to home prices reported for January 2005. May’s home prices remained 11.20 percent below peak prices reported in April 2007.
May’s FHFA data demonstrated steady growth of home prices for all nine census divisions on a year-over-year basis with home prices increasing from 2.70 percent to 15.80 percent in May.
Jul 23, 2013 | Home Buyer Tips
If you have purchased a new home and are going to move in soon, what are the first few things that you will need to do upon moving into your new home?
Moving can be very stressful, but having a checklist can make your move effortless.
Here are 6 easy steps that can eliminate any frustration and help you feel safe and secure:
Change Your Address
You will need to change your address for all magazine subscriptions, bills and other services. You can update your mailing address online or visit your local post office to find out what needs to be done.
Set Up The Utilities
When you move into a new home, you may get all of the contact information from the previous home owner or real estate agent for the utility companies. Be sure to change the services into your name before you move in, such as gas, cable, electricity, internet, telephone, sewer and water.
Change The Locks
You have no way of knowing who the old home owners gave a copy of the key to, so having the locks changed is something that you should do right away when you move into your new property.
Have The Carpets Cleaned
Get your life in the new house off to a fresh start by having the carpets steam cleaned before you move your furniture in. You could either rent a steam cleaner or pay a carpet cleaning service, but either way this will make the house feel really clean and new.
Figure Out Your Breaker Box
Another important first step to owning your new home is to figure out which breakers control each part of your home.
Knowing how the breaker box works will ensure that you can flip the right switch when you need to. You might need to ask someone to help you by standing in another part of the house and letting you know which lights come on or off when you flick the switches.
Check Your Smoke Alarms
The smoke alarms and CO monitors in your home might not have been checked recently, so make sure that they are functioning properly. Depending on how old they are, you might need to change the batteries. This is an important maintenance task for your own safety.
These are just a few of the important first steps that you should take when you first move into your brand new home.
For more information about buying a new home, feel free to contact your trusted real estate professional today.
Jul 22, 2013 | Housing Analysis
Last week’s economic news was a mixed bag with retail sales and housing starts coming in lower than expected, but home builder confidence in housing markets increased.
Weekly jobless claims fell, and Fed Chair Ben Bernanke testified before the Senate, saying that falling gold prices were an indication of increasing confidence in the economy, but that it was “way too soon” to say when the Fed’s quantitative easing program would be reduced.
Monday: Retail sales for June came in lower than expected at 0.4 percent. Economists estimated a reading of 0.9 percent based on May’s reading of 0.5 percent.
Tuesday: June’s Consumer Price Index (CPI) came in as expected at 0.5 percent against May’s reading of 0.1 percent. The NAHB/Wells Fargo Housing Market Index (HMI) for July gained five points for a reading of 57, which exceeded expectations of a reading of 52. Builders cited a short supply of existing homes and falling materials prices as factors contributing to June’s stronger reading.
Wednesday: Housing starts in June fell to a seasonally-adjusted annual rate of 836,000 against expectations of 950,000 and May’s revised reading of 928,000. Regional weather and a surplus of unused building permits were seen as contributing to fewer housing starts in June; analysts did not see the dip in housing starts as a sign of softening housing markets.
Thursday: Fed Chair Ben Bernanke testified before the Senate as noted above and was careful to emphasize that economic data received after the last FOMC meeting indicated that it is “way too soon” for the Fed to change its monthly volume of Treasury bonds and MBS purchases. This is good news for mortgage markets, and possibly for mortgage rates, which fell this week.
Freddie Mac reported that average rates for a 30-year fixed rate mortgage fell by 14 basis points to 4.37 percent; average rates for a 15-year fixed rate mortgage fell by 12 basis points to 3.41 percent; these rates include average discount points of 0.7 percent. The average rate for a 5/1 ARM was 3.17 percent with discount points of 0.6 percent. The 5/1 ARM provides an affordable alternative to rising fixed mortgage rates.
Friday: No significant economic news noted.
What’s Coming Up
This week’s schedule includes Existing Home Sales on Monday; on Tuesday, the FHFA releases its Home Prices report. New Home Sales will be released on Wednesday; Thursday brings weekly jobless claims and the Durable Goods report. The week will finish with the Consumer Sentiment report on Friday.
Jul 19, 2013 | Around The Home
Any family would feel violated after coming home to a ransacked house. Burglars look for specific things when choosing a home to break into, and many homeowners are unknowingly inviting criminals through the front door.
Below are five ways you can avoid drawing the eyes of thieves and deter your home from becoming a target.
Beware Of Selling To Strangers
If you’re wanting to sell items on Craigslist or another internet-based classified ad website, attempt conducting your transactions outside of the home.
If you must meet at home, screen the person over the telephone to ensure that they are truly interested in the item you’re selling. Thieves have been known to make appointments just to check out your home.
Be Careful If You Tweet About It
Not all of your friends protect their social media information, or may not have the most virtuous acquaintances. If you share your upcoming vacation or big event, then a mischievous friend of a friend will know the perfect time to forcefully check out your home.
Learn how to limit your social media posts to only your trusted contacts.
Mind Your Trash
Be careful when it comes to taking out the garbage, especially around holidays. Criminals will drive around nice neighborhoods and specifically look for empty boxes of high-price items. Then all they have to do is wait for you to leave the house before they force their way in and nab the goods.
Break down boxes and conceal them in garbage bags or trashcans.
Prepare For Your Vacation
Make sure when you leave on vacation that you put a few lights on timers and have someone collect your mail. A home that is obviously vacant is every burglar’s dream.
And if you’re on an extended holiday, ensure you also hire someone to take care of the lawn – overgrown grass is a no-one-is-home indicator.
Secure The Safe
Just because you put your valuables in a safe doesn’t mean they’re secure. If the safe isn’t installed in a wall or bolted to the floor, then a burglar can just carry it through your front door. They can figure out how to break into it later.
Make the additional time investment to ensure your safe can’t walk out the door.
With a little common sense and by following the advice above, you’ll reduce the risk of your home being targeted by burglars. If you would like more information about keeping your Massachusetts home secure, please call your trusted real estate professional today.
Jul 18, 2013 | Housing Analysis
The National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index (HMI) rose in July.
Home builder confidence in the market for newly constructed single-family homes rose six points to a reading of 57. NAHB reports that this was the third consecutive rise in the HMI and its highest reading since January 2006.
Three components used in compiling the HMI reading include current sales, which gained five points for a reading of 60. Confidence in prospective buyer traffic rose from 40 to 45, and sales expectations for the next six months rose from a reading of 60 to 67.
HMI: All Regions Post Gains
Regional data reflected gains in builder confidence for all U.S. geographic regions. Regional data is based on a three-month rolling average of builder confidence in each region.
The Northeast gained four points for a reading of 40; the Midwest gained eight points for a reading of 54. The South gained five points for a reading of 50, and the West gained three points for a reading of 51.
Readings of more than 50 indicate that more builders view conditions as good than poor. NAHB Economist David Crowe indicated that growing confidence is driven by factors including lower prices for building materials and more buyers vying for fewer available homes. A shortage of building space and available existing homes is improving markets for new homes.
Housing Starts Decline In June
In spite of growing home builder confidence, housing starts for June fell to their lowest level in nearly a year. Regional weather conditions contributed to the dip in housing starts, which surpassed June 2012 housing starts by 10.40 percent.
June’s housing starts fell to 836,000 on a seasonally-adjusted annual rate, and fell shy of economist’s expectation of 950,000 housing starts. Expectations were based on May’s original tally of 914,000 housing starts, which was revised upward to 928,000 on Wednesday.
Building permits for single family homes moved up by 0.60 percent to a rate of 624,000; this is the highest rate since May, 2008. A significant backlog of unused permits contributed to June’s lower number of building permits issued.
Economists are confident that the housing market continues its recovery, but may face obstacles if the government changes the mortgage interest tax deduction.
Another concern involves the pending “tapering” of the Fed’s quantitative easing program (QE). The QE program, which involves the Fed’s purchase of Treasury securities and mortgage-backed securities (MBS) was designed to support mortgage markets and also helps to keep mortgage rates low.
For specific details on local home building activity in and around Worcester County area , please contact your trusted real estate professional today.
