Northeast Shows An Increase In Pending Home Sales While The Rest Of The Nation Declines

The National Association of Realtors (NAR) released their report on pending home sales for October 2019. What is shows is that pending home sales nationwide is down 1.7% with only the Northeast region showing an increase in sales. A sale is listed as pending when the contract has been signed however the transaction has not closed. The expectation is that the sale would be finalized within 2 months.

NAR uses their Pending Home Sales Index (PHSI) which they state is an indicator based on contract signings. A index number of 100 on the PHSI is equivalent to the activity in 2001. Their indicator dropped 1.7% to 106.7 in October of 2019. The positive result of the index is that the PHSI is up 4.4% from the same time in 2018.

Lawrence Yun, chief economist for the NAR believes that an uptick in mortgage rates and decrease inventory has affected pending home sales nationwide. Overall he remains positive on the market. He states  “While contract signings have decreased, the overall economic landscape remains favorable. Mortgage rates continue to be low at below 4% – which will attract buyers – employment levels are strong and many recession claims have dissipated.” A continuing call for more available inventory in housing is needed according to Mr. Yun stating “We still need to address and, more importantly, correct inadequate levels of inventory across the country. There is no shortage of buyers seeking homes, but a lack of available units continues to drag down the nation’s housing market and overall economy. We risk a lingering shortage of sufficient inventory if homebuilding only continues at its current pace over the next 20 years, when the U.S. population is projected to increase by more than 40 million over this period. Clearly, home builders must step in and construct more housing.”

Here is a breakdown per region of pending home sales:

Northeast: Northeast saw an increase in the PHSI of1.9% to 95.7 in October. This is 3.0% higher for the same time a year ago.

West: The West saw a decrease of 3.4% for October 2019 to 91.9. The positive is that the PHSI is up 7.5% from October 2018.

South: The South is down 1.7% to an index of 125.3 in October. The PHSI is up 5.1% year over year.

Midwest: The Midwest’s PHSI is down 2.7% to 101.4 last month. Overall it is up 1.8% from the same time last 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.

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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.

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.

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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.

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Pending Home Sales Rebounds In August After Sluggish July Report

The National Association of Realtors (NAR) is reporting that pending home sales rebounded in August by 1.6% after a sluggish July. The Pending Home Sales Index (PHSI), which NAR says is a forward-looking indicator based on contract signings, increased to 107.3 in August, rising from 105.6 in July. All regions saw increases per the index according to the report.

A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. An index level of 100 is equivalent to a normal level according to the NAR. Lawrence Yun, chief economist for the NAR see the report as positive sign for the real estate industry. He states “It is very encouraging that buyers are responding to exceptionally low interest rates. The notable sales slump in the West region over recent years appears to be over. Rising demand will reaccelerate home price appreciation in the absence of more supply.”

As stated earlier all regions saw an increase in the PHSI with the highest increase being in the West growing at 3.1%. The Northeast, of importance to the New York City region rose 1.4% to 94.3. It is now 0.7% higher than a year ago. Pending home sales in the South increased 1.4% to an index of 124.4 in August, which is an increase of 1.8% year to year. The Midwest saw an increased in the index of 0.6% to 101.7 in August, which is 0.2% higher than August 2018. 

With respect to the forecast of sales ahead Yun believes that we are in need of higher home construction activity. He states “With interest rates expected to remain low, home sales are forecasted to rise in the coming months and into 2020. Unfortunately, so far in 2019, new home construction is down 2.0%. The hope is that housing starts quickly move into higher gear to meet the higher demand. Moreover, broader economic growth will strengthen from increased housing activity.” The NAR is predicting “home sales to rise 0.6% in 2019 and another 3.4% in 2020. Housing starts are predicted to increase by 2.0% in 2019 and jump an additional 10.6% in 2020, which in turn raises GDP to growth at 2.0% in 2020.”

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.

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Pending Home Sales Decline In July After Recent Uptick

That National Association of Realtors (NAR) is reporting the pending home sales declined nationally in July 2019 by 2.5% nationally. Pending home sales have changed course after seeing two consecutive months on increasing pending home sales. The increase of the previous months were the first seen since the last 19 months prior as we recently reported.

NAR’s Pending home sales index, which provides an index based on contract signings decreased 2.5% to 105.6 in July, down from 108.3 in June. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

Lawrence Yun, chief economist for the NAR believes that economic uncertainty and low inventory is affecting sales. He states “Economic uncertainty is no doubt holding back some potential demand, but what is desperately needed is more supply of moderately priced homes.” He further explains that new construction at moderate prices is essential.  “A boost to home building would greatly improve economic growth. More free-market prices on construction materials without government interference about where homebuilders have to get their supply will also help produce more and grow the economy. The housing industry cannot grow without more supply.”

Looking into the future Yun predicts sales will get a short term boost from lower mortgage rates however existing-home sales will most likely remain flat at 5.34 million for the rest of 2019. His prediction is based on the level of sales in the first seven months of the year. The report indicates that with low inventory median prices for existing homes will increase by 4% to $269,000, and 3% in 2020, to $278,500.

All regions are down according to the index. Of significance to the New York City region we see that pending home sales are down 1.6% in the Northeast to 93.0 in July and is now 0.9% lower than a year ago. The West region saw the most significant drop at 3.4% followed by the Midwest at 2.5% and South region at 2.4%.

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.

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Pending Home Sales Increase For A Second Consecutive Month

In what can only be described as a positive sign for the real estate industry, pending home sales increased for a second consecutive month after seeing sluggish signs for the 17 months preceding. The National Association of Realtors (NAR) released their June pending home sales report which indicated according to their Pending Home Sales Index that contracts increased 2.8% to 108.3 in June and up from 105.4 in May 2019. The Pending Home Sales Index shows that all major regions saw an increase.

Lawrence Yun, chief economist for the National Association of Realtors has foreseen a positive trend in real estate. He states ” Job growth is doing well, the stock market is near an all-time high and home values are consistently increasing. When you combine that with the incredibly low mortgage rates, it is not surprising to now see two straight months of increases. He further states “Homes are selling at a breakneck pace, in less than a month, on average, for existing homes and three months for newly constructed homes. Furthermore, homeowners’ equity in real estate has doubled over the past six years to now nearly $16 trillion. But the number of potential buyers exceeds the number of homes available. We need to see sizable growth in inventory, particularly of entry-level homes, to assure wider access to homeownership.”

As stated all major regions saw an increase in pending home sales. Of important for us here in the Northeast, we have seen an increase of 2.7% in the Northeast and is .9% higher than the same time last year. The highest growth was seen in the West where the Pending Home Sales Index increase 5.4%.

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.

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