New Home Sales Hit 2-Year High

According to estimates from the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single-family homes surged in April. Boosted by the expiring tax credits, sales soared 47.8 percent above last year’s level and 14.8 percent above March. April’s numbers exceeded economists’ expectations and marked the second straight month of gains. Also, the median price for a new home dropped 9.7 percent from March to $198,400, the lowest since December 2003. More here and here.

Filed under: Uncategorized, Housing Market, New Home Sales, News, Real-Estate, Sales, Tax Credit, Trends

Housing Starts Up 41% Over Last Year

According to The Department of Commerce’s April report on new residential construction, housing starts jumped 40.9 percent from last year and 5.8 percent above the month before. Ian Shepherdson, chief U.S. economist at High Frequency Economics, said increased demand from the home buyer tax credit lifted construction but its expiration has homebuilders wary, noting the 11.5 percent drop in building permits. Despite the drop in permits, which suggests starts will also fall off this summer, a recent report from the National Association of Home Builders showed builder confidence at a 2-1/2 year high. More here, here, here, and here.

Filed under: Uncategorized, Building Permits, Housing Market, Housing Starts, News, Real-Estate, Sales, Tax Credit, Trends

Foreclosures, Gov’t Action, And The Recovery

Economist Dean Baker, co-director of the Center for Economic and Policy Research, says federal programs have led to an artificial stabilization in the market. In order to deal with the glut of distressed properties, he feels people facing foreclosure should be allowed to stay in their homes as renters until they can renegotiate their mortgage.

Filed under: Uncategorized, Federal Programs, Foreclosures, Housing Market, Prices, Sales, Tax Credit, Video, Views

Interest Rates, Purchase Demand Fall

According to The Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for a 30-year fixed-rate mortgage fell to 4.96 percent last week from 5.02 percent the week before. As a result of rates being at their lowest level since mid-March, refinance activity increased 14.8 percent from the previous week. The seasonally adjusted Purchase Index, however, dropped 10 percent in the first week following the expiration of the home buyer tax credit. Michael Frantantoni, MBA’s vice president of research and economics said the tax credit likely pulled some sales into April that would’ve otherwise occurred later. More here and here.

Filed under: Uncategorized, Housing Market, Interest Rates, MBA, News, Real-Estate, Sales, Tax Credit

Analyst Forecasts Better Than Expected Housing Recovery

Stephen Auth, chief investment officer of Federated Investors, believes housing is on the road to recovery and could significantly contribute to economic growth within a year. Based on numbers compiled by JP Morgan Chase, Auth argues that housing starts will have to double just to keep up with demand, which is projected at 1.3 million units per year through 2014. Housing starts, which peaked at 2.1 million units in 2005, have been at 500,000-600,000 for more than a year. If those numbers hold, excess inventory will be absorbed and housing starts will rebound dramatically. More here.

Filed under: Uncategorized, Housing Market, Housing Starts, Inventory, Real-Estate, Sales, Tax Credit, Views

Tax Credit Boosts Loan Demand To Highest Level Since October

In the final week of the home buyer tax credit, demand for loan applications jumped 13 percent to a seven-month high. According to The Mortgage Bankers Association’s Weekly Applications Survey, purchase applications were up for the third consecutive week, rising almost 24 percent over the month before. Also, the average contract interest rate for 30-year fixed-rate mortgages fell to 5.02 percent, the lowest rate since mid-March. More here and here.

Filed under: Uncategorized, Housing Market, Interest Rates, MBA, News, Real-Estate, Sales, Tax Credit

Summer Sales, Foreclosures, And The End Of The Tax Credit

Mark Zandi, chief economist and co-founder of Moody’s Economy, says the housing market is six-to-twelve months from real recovery and predicts weaker home sales this summer and another slight dip in prices as foreclosures hit the market.

Filed under: Uncategorized, Foreclosures, Housing Market, Prices, Sales, Tax Credit, Video, Views

Housing Fundamentals More Up Than Down

James O’Sullivan, chief economist at MF Global Ltd., argues that, though recent spikes in sales are exaggerated by the tax credit, the housing market’s fundamentals are more up than down.

Filed under: Uncategorized, Housing Market, Interest Rates, Sales, Tax Credit, Video, Views

Stable Prices, Tax Credit Boost March Sales

With the national median existing-home price nearly unchanged from last year and time running out on the home-buyer tax credit, existing-home sales rose 6.8 percent in March, according to a report from The National Association of Realtors. Sales, up 16.1 percent from March 2009, have been above year-ago levels for nine straight months. Lawrence Yun, NAR’s chief economist, said price stabilization should lead to a revival in buying confidence, which will help the market rebound after the tax credit impact disappears. More here and here.

Filed under: Uncategorized, Existing Home, Housing Market, News, Price, Real-Estate, Sales, Tax Credit

First-Time Buyers Nearly Half Of All Home Sales

According to The National Association of Realtors’ 2009 Profile of Home Buyers and Sellers, first-time home buyers accounted for 47 percent of all home sales last year. That was the highest market share on record, passing the previous high of 44 percent in 1991. This March, based on a survey from Campbell/Inside Mortgage Finance, 48.2 percent of purchases were first-time buyers. Thomas Popik, research director for Campbell Surveys, said, though many analysts felt the pool of first-time buyers had been depleted last fall, normal spring buying, combined with the tax credit, produced blow-out results. More here. Also a Coldwell Banker survey on single home buyers here. More on single buyers here.

Filed under: Uncategorized, Housing Market, News, Real-Estate, Sales, Tax Credit, Trends