Northeast Sees Existing-Home Sales Decline Amid A Nationwide Increase

The National Association of Realtors (NAR) is reporting that existing-home sales increased in October 1.9% however there was a split in results in regions with the Northeast and West reporting drops in sales. Existing-home sales are based on transaction closings involving single-family, townhomes, condominiums and co-ops.

The NAR is reporting that existing-home sales increased 1.9% from September 2019 to a seasonally-adjusted annual rate of 5.46 million in October. They indicated that overall sales are up 4.6% from 2018. (5.22 million in October 2018). Median existing-home prices were up 6.2% to $270,900. A year ago existing home prices were at $255,100. All regions saw increases in home prices. The total amount of housing inventory at the end of October was calculated at 1.77 million units which is down approximately 2.7% from September and 4.3% from one year ago. Inventory sat at 1.85 million in October 2018.

Lawrence Yun, chief economist for the NAR believes that the results are positive and sees a positive future. He states  “Historically-low interest rates, continuing job expansion, higher weekly earnings and low mortgage rates are undoubtedly contributing to these higher numbers. We will likely continue to see sales climb as long as potential buyers are presented with an adequate supply of inventory.” He also believes there will be more inventory coming along the way. “The issuance of more housing permits is a very positive sign and a good step toward more inventory,” said Yun, citing the latest data for housing starts. “In order to better counter and even slow the increase in housing prices, home builders will have to bring additional homes on the market” say Yun.

The regional breakdown is as follows:

Northeast: Existing-home sales in the Northeast region fell 1.4% to an annual rate of 690,000. There was no change from 2018 at the same time. The median price in the Northeast was $296,700, up 5.7% from October 2018

West: The West saw a decrease in existing-home sales of 0.9% to an annual rate of 1.13 million in October. The positive is that it is 3.7% above a year ago. The median price in the West was $410,700 which is up 7.8% from October 2018.

South: The South saw an increase of 4.4% to an annual rate of 2.35 million in October. This is up 7.8% from 2018. The median price in the South was $234,900. That is a 6.0% increase from a year ago.

Midwest: Existing-home sales in the Midwest increased 1.6% to an annual rate of 1.29 million. This is a jump of 2.4% from October 2018. The median price in the Midwest was $209,900, an increase of 6.7% increase from the same time last year.

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Existing-Home Sales Tumble In September After Two Months Of Positive Signs

The National Association of Realtors (NAR) are reporting that existing-home sales fell in September after two consecutive months of increases. All regions showed declines with the Northeast region having the second worse showing of a decrease of 2.8% year over year.

Overall, existing-home sales fell 2.2% from August to a seasonally adjusted annual rate of 5.38 million in September. Existing home sales are considered completed transactions which includes single-family homes, townhomes, condominiums and co-ops. Lawrence Yun, chief economist for the NAR stated the the lack of housing inventory is to play for the sales numbers.  “We must continue to beat the drum for more inventory. Home prices are rising too rapidly because of the housing shortage, and this lack of inventory is preventing home sales growth potential.” With respect to inventory, there were 1.83 units available at the end of September. The inventory amount is 2.7% below what was available a year ago which was 1.88 million.

First-time buyers were responsible for 33% which is in line with the figures from a year ago. Mortgage rates are making it attractive for first-time home buyers as well. 30 year conventional fixed-rate mortgages decreased to 3.61%. Last year the overall average commitment rate was 4.54%. Yun stated “Mortgage rates under 4% are amazingly attractive for homebuyers. The rise in foot traffic as evidenced by the open rates of SentriLock key boxes shows growing buyer interest.”

Below is the regional breakdown of sales by region:

Northeast: Northeast sales were down 2.8% to an annual rate of 690,000. The median price was $301,100 which is up 5.2% year over year.

Midwest: The Midwest saw the biggest drop of 3.1% to an annual rate of 1.27 million. The median price was $213,500, which is an increase of 7.2% jump from last year at the same time.

South: The South saw a drop of 2.1% to an annual rate of 2.28 million. The median price was $237,300 which is an increase of 6.3% from one year ago.

West: The West had a decline of 0.9% to an annual rate of 1.14 million. The median price was $403,600 which is an of 4.5% from the previous year.

BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://bjdpropertymanagement.com/existing-home-sales-tumble-in-september-after-two-months-of-positive-signs/

Visit us at www.bjdpropertymanagement.com