record home sales

2005 Existing-Home Sales Set Annual Record(January 25, 2006) -- Existing-home sales declined in December but easily set an annual record, according to the NATIONAL ASSOCIATION OF REALTORS®.There were 7.07 million existing-home sales in all of 2005, up 4.2 percent from 6.78 million in 2004. This is the fifth consecutive annual record; NAR began tracking the sales series in 1968.However, total existing-home sales for December — including single-family, townhomes, condominiums and co-ops — were down 5.7 percent to a seasonally adjusted annual rate of 6.60 million units from an upwardly revised pace of 7.00 million in November. Sales were 3.1 percent lower than a 6.81 million-unit level in December 2004.David Lereah, NAR’s chief economist, expected the monthly sales decline. “This is part of the market adjustment we’ve been discussing, with a soft landing in sight for the housing sector,” he says. “The level of home sales activity is now at a sustainable level, and is likely to pick up a bit in the months ahead. Overall fundamentals remain solid, driven by population and employment growth as well as favorable affordability conditions in most of the country, so we expect the housing market to remain historically high but lower than last year’s record.”According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.27 percent in December, down from 6.33 percent in November; the rate was 5.75 percent in December 2004. Last week, Freddie Mac reported the 30-year fixed rate was down to 6.10 percent.“Mortgage interest rates have been trending down from a peak in November, and are lower than expected – if lower interest rates are sustained, the housing market could see some unexpected lift,” Lereah said.The national median existing-home price for all housing types was $211,000 in December, up 10.5 percent from December 2004 when the median was $191,000. The median is a typical market price where half of the homes sold for more and half sold for less.For all of 2005, the median price was $208,700, up 12.7 percent from a median of $185,200 in 2004.NAR President Thomas M. Stevens from Vienna, Va., says it may take a while for home price growth to cool. “We’re coming off of five years of tight supply, and many sellers are accustomed to expecting very strong price gains and exceptional returns on their investment,” said Stevens, senior vice president of NRT Inc. “With the supply of homes improving and buyers having more choices, the rate of price growth should come down to more normal levels this year.”Total housing inventory levels declined 4.4 percent at the end of December to 2.80 million existing homes available for sale, which represents a 5.1-month supply at the current sales pace.Condo Sales Activity Picks UpExisting condominium and cooperative housing sales increased in December by 1.6 percent to a seasonally adjusted annual rate of 877,000 units from a level of 863,000 in November. Last month’s sales activity was 4.5 percent higher than the 839,000-unit pace in December 2004. For all of 2005, condo sales jumped 9.3 percent to 896,000 units, the 10th consecutive annual record.The median existing condo price was $228,100 in December, which was 10.2 percent above a year ago. In 2005, the median condo price was $218,200, up 12.7 percent from 2004.Single-Family Sales Slip, Prices RiseSingle-family home sales declined 6.8 percent to a seasonally adjusted annual rate of 5.72 million in December from 6.14 million in November, and were 4.2 percent lower than the 5.97 million-unit pace in December 2004. In 2005, single-family sales rose 3.6 percent to 6.18 million, the fifth straight yearly record.The median existing single-family home price was $209,300 in December, which was 10.8 percent above a year ago. For 2005, the median single-family price was $207,300, up 12.6 percent from 2004.Sales Pace Differs by RegionRegionally, total existing-home sales in the Northeast held even at an annual sales rate of 1.09 million units in December, and were 3.5 percent lower than December 2004. The median price in the Northeast was $245,000, up 11.4 percent from a year ago.In the Midwest, existing-home sales eased by 2.6 percent to an annual pace of 1.52 million in December, and were 1.9 percent below a year ago. The median price in the Midwest was $173,000, which was 10.9 percent higher than December 2004.Existing-home sales in the South declined 7.2 percent in December to a level of 2.58 million, but were 1.2 percent higher than December 2004. The median price in the South was $182,000, up 4.6 percent from a year earlier.In the West, existing-home sales fell 11.4 percent to a pace of 1.40 million in December, and were 11.4 percent below a year ago. The median existing-home price in the West was $318,000, up 14.0 percent from December 2004.—NAREditor's Note: For more housing market statistics and research reports,visit NAR's Research Department at REALTOR.org.

Homes get bigger as family size shrink

U.S. Homes Growing as Families Shrink(January 24, 2006) -- The average home in the United States increased in size to an all-time high of 2,412 square feet in 2005—63 square feet larger than in the previous year, according to the National Association of Home Builders.NAHB research director Gopal Ahluwalia attributes the increase to the fact that home buyers simply can afford larger abodes. A new report from the builders' group reveals a drop in the average family size to 2.5 residents from three residents over the past three decades, while the average residence expanded by 50 percent. Ahluwalia adds that homes are growing larger, even though the average lot size is expected to fall to about 7,000 square feet from the current average of 9,000 square feet. The NAHB report found that 40 percent of new dwellings have four-plus bedrooms, nearly one-quarter have three or more bathrooms, and more than half have two or more floors. Builders also are turning to open floor plans with standard nine-foot ceilings, according to the report. Source: Wilkes Barre Times Leader (PA), Steve Brown (01/23/06)

50 Year Mortgages?

Buying a Home on a Half-Century Plan(January 23, 2006) -- Home buyers have access to 40-year mortgages, which lower the monthly payment by stretching out the loan term beyond the traditional 30 years. Can a 50-year mortgage be far behind? Though there is talk about a 50-year mortgage being offered in the near future, Fitch Ratings senior director Mark Douglass says no such loan is presently available. However, 50-year mortgages would offer even lower monthly payments, as well as the security of a fixed-rate product. Douglass adds that most borrowers would move or refinance long before the 50-year term is up. Source: Los Angeles Times (01/22/06); Umberger, Mary

Mortgage Rates Drop

Mortgage Rates Tumble for 6th Week(January 20, 2006) -- The national average commitment rate on a 30-year, fixed mortgage fell to 6.10 percent from 6.15 percent over the past week, according to Freddie Mac.This marks the sixth consecutive weekly decline and the lowest since October. The national average commitment rate, along with fees and points charged by lenders, reflects the cost of obtaining a mortgage.The national average commitment rate on a 15-year, fixed mortgage dropped to 5.67 percent from 5.71 percent over the same time span. The average five-year hybrid adjustable rate slipped to 5.75 percent from 5.76 percent, but the average one-year ARM rose to 5.18 percent from 5.15 percent. Freddie Mac chief economist Frank Nothaft attributed the decreases to low inflation. Source: Tacoma News Tribune (WA) (01/20/06); Crutsinger, Martin

2500 residential home listings - UP 100 from last week!!

Total Market Inventory

2502 Residential
2194 Vacant Land
90 Commercial
30 MultiFamily

Q. What does this mean?
A. Houses are not selling. Prices are trending down!

Condo-tels

Hotel-to-Condo Conversions Reach New Heights(January 17, 2006) -- Developers increasingly are converting hotels and other buildings into high-end condominiums. A hospital in Philadelphia's Franklin Park neighborhood has been transformed into 130 condos. The MetroClub Condominiums boasts sound-proof units. The developer retained the building's drive-in entrance, spacious lobby, marble walls, and elevator banks, among other features.In Miami Beach, meanwhile, Christa Development is converting the historic Caribbean hotel into 35 condos priced from about $1 million apiece. The company also is adding an adjacent tower with 68 units. Residents will enjoy an oceanfront pool, a fitness center, and a wine vault, among other amenities. Source: Unique Homes (01/01/06); Sapio, Erica

Mortgage rates dropping

Mortgage Rates Fell in Latest Week(January 13, 2006) -- The national average commitment rate on a 30-year, fixed mortgage dipped to 6.15 percent from 6.21 percent over the past week, according to Freddie Mac.The national average commitment rate on a 15-year, fixed mortgage fell to 5.71 percent from 5.76 percent over the same time span. The average rate on a one-year, adjustable-rate mortgage slipped to 5.15 percent from 5.16 percent, while the five-year hybrid ARM dipped to 5.76 percent from 5.78 percent. Freddie Mac chief economist Frank Nothaft attributes the drop in mortgage rates to "some economic data releases that pointed toward more subdued inflation in the near term." Source: The Wall Street Journal (01/13/06)

Foreclosures on the Rise!

Previously Foreclosed Homes Flood the Market(January 12, 2006) -- Foreclosure activity ramped up at the close of 2005, reports Boca Raton-based Foreclosure.com. The number of foreclosed homes available for sale in December surged 12.7 percent from the previous month to 91,905, while the rate of foreclosures listed for sale rose 7.7 percent to 24,124. New foreclosures were highest in the U.S. South, followed by the Midwest, the Northeast, and the West. "With lending institutions closing their books at the end of the year, it is somewhat common for the foreclosure inventory to rise," explained Foreclosure.com President and CEO Brad Geisen. "It is premature to predict that December's inventory indicates a foreclosure crisis in the U.S.; however, this rise in inventory, which is higher than in recent years, should be closely monitored as 2006 begins." Geisen added that market fundamentals, including higher interest rates and ebbing investor confidence, make it likely that the foreclosure supply will remain high early in the year. Source: All Headline News (01/11/06); Chase, Ayinde O.

2400 residential listings?

Look at this inventory. Can you say BUYERS MARKET???
2433 Residential
2123 Vacant Land
92 Commercial
24 MultiFamily

1/10/2006 Housing Market to Normalize

Housing Market to 'Normalize' in 2006(January 10, 2006) -- The key word for the housing market in 2006 is balance, with a return to a more normal rate of price growth, according to the NATIONAL ASSOCIATION OF REALTORS®.David Lereah, NAR’s chief economist, says current trends in the housing sector are healthy. “We don’t need to break a record every year for the housing market to be good—in fact, cooling sales are necessary for the long-term health of this vital sector,” Lereah says. “A modest slowdown in home sales, coupled with improvements in housing inventory, means the market is in the process of normalization. That will help to bring balance between home buyers and sellers, yet sales will remain historically strong.”After setting a fifth consecutive annual record, projected to be 7.10 million units for 2005, existing-home sales are forecast to ease by 4.4 percent to 6.79 million this year, which would be the second highest on record. New-home sales, which should be a record 1.29 million for 2005, are expected to decline 6.0 percent to 1.21 million in 2006—that also would be the second best year in history. Total housing starts for 2005 are seen at 2.07 million units—the highest since setting a record 1972—with a 6.6 percent slowing to 1.94 million this year.“A lot of demand has been met over the last five years, and a modest rise in mortgage interest rates is causing some market cooling. Along with regulatory tightening on nontraditional mortgages, there will be fewer investors in the market this year,” Lereah says. The 30-year fixed-rate mortgage is likely to increase gradually to 6.7 percent during the second half of the year. “This will preserve generally favorable affordability conditions and keep the housing market at a more sustainable sales pace.”NAR President Thomas M. Stevens from Vienna, Va., says price appreciation should be at more normal levels across most of the country. “Buyers are no longer competing for a tight supply,” says Stevens, senior vice president of NRT Inc. “That means home prices generally will rise much closer to long-term norms, which is the overall rate of inflation plus one or two percentage points. Lower price appreciation will keep the door open to first-time buyers while preserving the investment advantages of home ownership for sellers.”The national median existing-home price for all housing types, projected to jump 12.9 percent to $209,100 for 2005, is forecast to rise 5.1 percent to $219,700 this year. The median new-home price, which should be up 4.6 percent to $231,300 for 2005, is expected to increase 6.0 percent this year to $245,200.Inflation as measured by the Consumer Price Index is projected to rise 3.4 percent for 2005 and 3.0 percent in 2006. Inflation-adjusted disposable personal income is forecast to increase 1.3 percent for 2005 and 4.6 percent this year.Growth in the U.S. gross domestic product is likely to be 3.6 percent for 2005, with GDP seen at 4.0 percent this year. The unemployment rate is expected to drop to 4.8 percent by the end of the year.—NAR
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