Home-Price Gains Hold Steady in Majority of Metro Areas in Third Quarter

Home prices showed continued growth in a majority of metropolitan areas in the third quarter, but all four major regions saw increases at or below 5 percent from a year ago, according to the latest quarterly report by the National Association of Realtors^®.

The median existing single-family home price increased in 73 percent of measured markets, with 125 out of 172 metropolitan statistical areas¹(MSAs) showing gains based on closings in the third quarter compared with the third quarter of 2013. Forty-seven areas (27 percent) recorded lower median prices from a year earlier.

The number of rising markets in the third quarter was mostly unchanged from the second quarter, when price increases were recorded in 71 percent of metro areas. Sixteen areas in the third quarter (9 percent) had double-digit increases, a sharp decline from the 54 areas (33 percent) in the third quarter of 2013. Nineteen areas experienced increases in the double-digits in the second quarter of this year.

Lawrence Yun, NAR chief economist, says home prices in the third quarter continued to stabilize towards a healthier rate of growth. “Home-price gains returned to more normalized levels of low- to mid-single digit rate of appreciation in many metro markets as inventory levels steadily increased,” he said. “Moreover, there are a good number of local markets that are still remarkably affordable with median prices at or under $200,000.”

The national median existing single-family home price in the third quarter was $217,300, up 4.9 percent from the third quarter of 2013 ($207,100). The median price during the second quarter of 2014 increased 4.2 percent from a year earlier.

Total existing-home sales², including single family and condo, increased 5.2 percent to a seasonally adjusted annual rate of 5.12 million in the third quarter from 4.87 million in the second quarter, but are still 3.8 percent below the 5.32 million pace during the third quarter of 2013.

Yun adds, “Given the improving labor market and historically low interest rates, more buyers are anticipated to enter the market next year.” 

Total housing inventory³ continued to make strides at the end of the third quarter at 2.30 million existing homes available for sale, which is 6.0 percent higher than a year ago. The average supply during the third quarter was 5.4 months; it was 5.0 months in the third quarter of 2013. A supply of 6 to 7 months represents a rough balance between buyers and sellers.

NAR President Steve Brown, co-owner of Irongate, Inc., Realtors^® in Dayton, Ohio, says traditional buyers are entering a more favorable market. “With inventory levels at a rate closer to supporting overall demand, bidding wars are occurring less – giving buyers more time to view homes and secure financing,” he said. “Additionally, Realtors^® across the country continue to report less investor activity and fewer all-cash sales in their markets compared to earlier in the year.” ⁴

Distressed homes⁵ – foreclosures and short sales generally sold at discount – accounted for 9 percent of third quarter sales, down from 14 percent a year ago. “Distressed sales are becoming less prevalent in many parts of the country and will likely be in the low single-digits percentagewise at this time next year,” adds Yun.

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage held steady during the third quarter to an overall average rate of 4.14 percent, down from 4.23 percent during the second quarter of the year. They were 4.4 percent in the third quarter of 2013.

Slightly lower mortgage rates and an uptick in the national family median income ($65,562) kept affordability in the third quarter roughly in line with the second quarter⁶. To purchase a single-family home at the national median price, a buyer making a 5 percent downpayment would need an income of $48,334, a 10 percent downpayment would require an income of $45,790, and $40,702 would be needed for a 20 percent downpayment.

Metro area condominium and cooperative prices – covering changes in 61 metro areas – showed the national median existing-condo price was $211,000 in the third quarter, up 2.7 percent from the third quarter of 2013 ($205,500). Forty-one metro areas (67 percent) showed increases in their median condo price from a year ago; 20 areas had declines.

The five most expensive housing markets in the third quarter were the San Jose, Calif., metro area, where the median existing single-family price was $860,000; San Francisco, $744,400; Anaheim-Santa Ana, Calif., $697,000; Honolulu, $677,600; and San Diego, $517,800.

The five lowest-cost metro areas in the third quarter were Youngstown-Warren-Boardman, Ohio, where the median single-family home price was $84,500; Cumberland, Md., $93,200; Rockford, Ill., $98,100; Decatur, Ill., $101,900; and Toledo, Ohio, $107,000.

Regionally, total existing-home sales in the Northeast rose 7.0 percent in the third quarter but are 5.2 percent below the third quarter of 2013. The median existing single-family home price in the Northeast was $261,700 in the third quarter, up 2.2 percent from a year ago.

In the Midwest, existing-home sales increased 7.4 percent in the third quarter but remain 4.7 percent below a year ago. The median existing single-family home price in the Midwest increased 5.0 percent to $172,700 in the third quarter from the same quarter a year ago.

Existing-home sales in the South climbed 3.6 percent in the third quarter but are 0.8 percent below the third quarter of 2013. The median existing single-family home price in the South was $189,400 in the third quarter, 4.5 percent above a year earlier.

In the West, existing-home sales rose 4.8 percent in the third quarter but remain 7.2 percent below a year ago. The median existing single-family home price in the West jumped 4.9 percent to $302,300 in the third quarter from the third quarter of a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

From Realtor.org

Ken Keegan Real Estate Broker
(910) 523-0903 mobileEmail Mewww.KenKeegan.com Click here for more information on Brunswick, County Real Estate St. James Plantation

Pending Home Sales Hold Steady in September

 

WASHINGTON (October 27, 2014) – Pending home sales rose slightly in September and are now above year-over-year levels for the first time in 11 months, according to the National Association of Realtors^®.

The Pending Home Sales Index,^* a forward-looking indicator based on contract signings, inched  0.3 percent to 105.0 in September from 104.7 in August, and is now 1.0 percent higher than September 2013 (104.0). The index is above 100 for the fifth consecutive month and is at the second-highest level since last September.

Lawrence Yun, NAR chief economist, says moderating price growth and sustained inventory levels are keeping conditions favorable for buyers. “Housing supply for existing homes was up in September 6 percent from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year,” he said. “Additionally, the current spectacularly low mortgage rates should help more buyers reach the market.”

Despite improved housing conditions and low interest rates, tight credit conditions continue to be a barrier for some buyers. Of the reasons for not closing a sale, about 15 percent of Realtors^® in September reported having clients who could not obtain financing as the reason for not closing¹. 

Yun says the final rule on Qualified Residential Mortgages should improve access to credit once it goes into effect next year. “The rule provides clarity for lenders and is a win for creditworthy consumers by ensuring they continue to have access to safe and affordable loan products without overly burdensome downpayment requirements,” he said.

The PHSI in the Northeast increased 1.2 percent to 87.5 in September, and is now 2.9 percent above a year ago. In the Midwest the index decreased 1.2 percent to 101.2 in September, and is now 4.0 percent below September 2013.  

Pending home sales in the South increased 1.4 percent to an index of 118.5 in September, and is 1.7 percent above last September. The index in the West inched back 0.8 percent in September to 101.3, but is still 3.6 percent above a year ago.

Yun will present NAR’s 2015 economic outlook and forecast on Friday, Nov. 7 at the 2014 REALTORS^® Conference & Expo in New Orleans. Federal Housing Finance Agency Director Mel Watt will join Yun to discuss his perspective on the current housing market, issues facing consumers and sustaining the ongoing housing market recovery.

Members of the media may register in advance to attend NAR’s annual conference by contacting Yolanda Byrd, 202-383-7515 orybyrd@realtors.org. Onsite press registration will begin Thursday, Nov. 6 through Sunday, Nov. 9, 8 a.m.–5 p.m.; and Monday, Nov. 10, 8 a.m.–noon at the Morial Convention Center, Room 214.

The National Association of Realtors^®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Ken Keegan Real Estate Broker
(910) 523-0903 mobileEmail Mewww.KenKeegan.com Click here for more information on Brunswick, County Real Estate St. James Plantation

How to avoid homebuyer's remorse

Big purchases often come with big expectations.

So it's no wonder that in a recent survey of 2,000 homebuyers, a whopping 80% said they regretted at least one thing about their home.

The number one complaint: The home just isn't big enough, mortgage information site HSH.com found. Others complained about a lack of closet space or that the place didn't have enough bathrooms. Bad neighbors were also a problem, as was a substandard school system.

A lot of those issues could have been avoided.

Take Kenny Kline, who thought he got a bargain on a fifth floor walk-up apartment in Brooklyn, N.Y., last year. At $720,000, the two-bedroom seemed like a good deal in Brooklyn's competitive real estate market.

But walking up and down the five flights of stairs grew tiresome quickly.

"I'm only 29 so I thought I could handle it, but trudging up those stairs multiple times a day with groceries, packages, furniture, whatever, has really taken its toll," he said. "Then, I hurt my back. That made the epic journey up and down even more insufferable."

He plans to "tough it out for at least another year," he said, not wanting to repeat the moving process -- and all of the costs involved -- so soon.

Of course, some factors, like bad neighbors, can't be anticipated. And some conditions change over time. Nearby property may be developed into a shopping mall or freeway, for instance.

For Amanda Haddaway and her husband, privacy became a big issue when they lived in their Frederick, Md., townhouse. They could look out their windows right into the units of neighbors, who could look into the Haddaway's home just as easily.

The two also needed more space. When they had moved in together, the townhouse just couldn't accommodate their combined stuff.

So they sold the home and built a big, new one on a six-acre lot in Woodsboro, Md.

"It's definitely much more peaceful where we live now; our closest neighbors are a half mile away," said Haddaway. "And we've been able to get rid of our storage unit."

Freelance writer Lauren Bowling bought a house in Atlanta in July 2013 when she was still with her fiancé. But three months later, they broke up.

"I don't hate my house but, as a single woman, it is way more space, upkeep and energy than I need right now," she said.

She intends to keep it for a while since she'd like to try to recoup some of the money she spent on the purchase and renovations.

To keep you from buying a home you'll regret, Brendon DiSimone, a New York-based real estate broker and author of Next Generation Real Estate, offers up these tips.

Don't give in on your core requirements. If you know that having three bathrooms is important for your happiness but the house only has two, keep shopping.

Don't let yourself fall in love with a home that doesn't match your needs. Regret may not set in immediately but when it does, the fix, like adding a bathroom, might cost you plenty.

Don't cave in to a partner or spouse. If you believe you will be unhappy in the new house, don't let your wife of husband talk you into buying it. It will only cause resentment.

Know your give-in points. Everyone house hunts with a wish list, but there are some items that can be compromised. Tiny kitchens might be a deal breaker if you are an avid cook but maybe you can live without a den.

Don't get caught up in the heat of the moment. Overpaying is one of the biggest sources of remorse, especially if buyers get involved in a bidding war. Bidding against other buyers can be exciting and entice homebuyers to throw their budgets out the window. But sometimes, it becomes more about winning than how much the house is worth to you.

"Ask yourself, 'Do I really want the house or do I want to beat somebody else out?'" he said.

Don't lose your edge. Once a shopper makes the decision to purchase a home, they sometimes overlook major issues. If the inspector finds dry rot in the joists or the appraisal comes in much lower than the sale price, stand your ground: either pull out of the deal or get the seller to lower the price to reflect the cost of the repairs.

Do your research. These days, there's a ton of information available on the web that can help you in your search for a new home. Sites like Trulia and Zillow offer all sorts of stats on the quality of school systems, walkability and access to restaurants, as well as crime, that will help you assess whether a neighborhood or area is right for you. 

Original Article from CNN Real Estate

Ken Keegan Real Estate Broker
(910) 523-0903 mobileEmail Mewww.KenKeegan.com Click here for more information on Brunswick, County Real Estate St. James Plantation

Millennials and the American Dream

Based on a report released by The Demand Institute, Millennials and Their Homes: Still Seeking the American Dream:

• In the next five years, 8.3 million new millennial (Gen Y) households will form. It is predicted that millennials will spend $1.6 trillion on home purchases and $600 billion on rent.
• The generation is optimistic: 79% expect their financial situation to improve and 74% expect to move within the next five years.
• Gen Y wants to own. Similar to other survey findings, 75% believe home ownership is an important long-term goal and 73% believe ownership is an excellent investment. 24% already own their home and an additional 60% plan to buy a home in the future.
• Looking forward: when they move, they will want more space and they will move to the suburbs to start families.
• 88% own a car, and they are open to moving locations where grocery stores, restaurants, and retail is within a short drive vs walking distance.
• 44% do think it would be difficult to qualify for a mortgage, and 69% would consider lease-to-own approaches to home buying.
• The data is based on a survey of more than 1,000 millennial households (ages 18 to 29).
• Check out http://demandinstitute.org/sites/default/files/blog-uploads/millennials-and-their-homes-final.pdf to view the entire report.

From Realtor.org

Ken Keegan Real Estate Broker
(910) 523-0903 mobileEmail Mewww.KenKeegan.com Click here for more information on Brunswick, County Real Estate St. James Plantation

Pending Home Sales Pick Up in July

 

 

Pending home sales rebounded in July and have now risen in four of the last five months, according to the National Association of Realtors^®. All major regions experienced healthy gains except for the Midwest, which saw a slight decline.

The Pending Home Sales Index,^* a forward-looking indicator based on contract signings, climbed 3.3 percent to 105.9 in July from 102.5 in June, but is still 2.1 percent below July 2013 (108.2). The index is at its highest level since August 2013 (107.1) and is above 100 – considered an average level of contract activity – for the third consecutive month.

Lawrence Yun, NAR chief economist, says favorable housing conditions are behind July’s higher contract activity. “Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 2012¹,” he said. “The increase in the number of new and existing homes for sale is creating less competition and is giving prospective buyers more time to review their options before submitting an offer.”

Yun adds, “More importantly, steady job additions to the economy are helping family finances and giving them added confidence to enter the market.”

The PHSI in the Northeast jumped 6.2 percent to 89.2 in July, and is 8.3 percent above a year ago. In the Midwest the index marginally fell 0.4 percent to 104.6 in July, and is 6.4 percent below July 2013.  

Pending home sales in the South increased 4.2 percent to an index of 119.0 in July, and is now 1.0 percent below a year ago. The index in the West rose 4.0 percent in July to 99.5, but remains 6.0 percent below July 2013.

Yun expects existing-homes sales to be down 2.1 percent this year to 4.98 million, compared to 5.09 million sales of existing homes in 2013. The national median existing-home price is projected to grow between 5 and 6 percent this year and 4 and 5 percent next year.

The National Association of Realtors^®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

¹Total housing inventory in July 2014 was 2.37 million existing-homes available for sale, the highest since August 2012 (2.40 million).
 

^*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. 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.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

 

NOTE:  Existing-home sales for August will be reported September 22, and the next Pending Home Sales Index will be September 29; release times are 10:00 a.m. EDT.

From Realtor.org

Ken Keegan Real Estate Broker
(910) 523-0903 mobileEmail Mewww.KenKeegan.com Click here for more information on Brunswick, County Real Estate St. James Plantation

N.C. Maritime Museum at Southport can stay home for at least next 10 years

For her birthday on August 5, N.C. Maritime Museum at Southport director Mary Strickland received a welcome gift. 

 

The U.S. Lands to Parks office had officially signed a new 10-year concession agreement, finalizing documents that allow the museum to be housed in the former officers quarters of Fort Johnston for the foreseeable future. 

 

The agreement required the signatures of various state agencies and officials, the museum’s support group chair, the City of Southport and the federal government. 

“It had to be perfect,” Strickland said. “If we changed even one word, we had to go back and seek approval from everyone, so it was not only an important document, but one that had to been handled with care.”

Now that the concession agreement, which serves similarly to a lease, has been completed, the museum can move forward with its expansion plans. An initial phase calls for the addition of new bathroom, classroom, workshop and storage space at the rear of the building. 

“We hope to be able to offer a very useful research library, a media center and provide upgraded office space for our staff,” Strickland said. “We have a staff that is ambitious and committed, and it was distressful to worry year after year if we were going to be here.”

Strickland said about one-third of the fundraising effort has been completed so far, and praised  local members of the Friends of the Museum group, led by chairman Shirley Wilson, and expansion chair Walt Madsen for their efforts. 

“We have worked diligently for the past two years on this, and we are so happy to be where we are now,” Strickland said.

The museum moved to the grounds of Fort Johnston in March 2010, after being housed on North Howe Street since 1992.

From State Port Pilot

Ken Keegan Real Estate Broker
(910) 523-0903 mobileEmail Mewww.KenKeegan.com Click here for more information on Brunswick, County Real Estate St. James Plantation