Real estate agents optimistic for 2017


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Real estate agents remain broadly optimistic about housing market conditions for the first half of 2017, according to a survey by the National Association of Realtors. 

The NAR’s “Realtors Confidence Index – Six Month Outlook” for all property types registered above 50 in 2016, marking a record year. All indices have been trending upward since 2012. A score above 50 indicates that more respondents expected market conditions to be “strong” than “weak” over the next six months. 

As of December, the index for condominiums was at 56 – the highest since scoring began in 2008. The approval of the “Housing Opportunity Through Modernization Act of 2016,” appears to be bolstering home buying in the condominium market, the association said. 

“Among other measures, the law eases access to FHA [Federal Housing Administration] condominium financing by reducing the FHA condominium owner-occupancy ratio from 50 percent to 35 percent, directing the FHA to streamline the condominium re-certification process, and providing more flexibility for mixed-use buildings,” the NAR said.

The overall index for the single-family homes market was at 76, with a “very strong” outlook in the District of Columbia and 14 other states:
•    Alabama
•    Arizona
•    Colorado
•    Georgia
•    Indiana
•    North Carolina
•    Ohio
•    Oregon
•    Rhode Island
•    South Carolina
•    Tennessee
•    Texas
•    Washington
•    Wisconsin

The District of Columbia was the only place to register a “very strong” outlook in the town homes market for December. The overall index was nevertheless at 61. 

The December 2016 report is based on the responses of 3,625 realtors, 2,025 of which closed a sale, the association said. First-time homebuyers accounted for 32 percent of sales.

With fewer new foreclosures, distressed properties accounted for 7% of sales, purchases for investment purposes made up 15% of sales, and cash sales accounted for 21% of sales, the association said. 

“Amid tight supply, half of properties that sold in December 2016 were on the market for 52 days or less compared to 58 days in December 2015 (43 in 2016; 50 in 2015),” the NAR said.

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New Realtors report: D-FW home prices jumped 12 percent in fourth quarter

Dallas-Fort Worth home prices soared almost 12 percent in the fourth quarter — one of the largest such gains in the country.

The D-FW area was among the 20 U.S. markets with the greatest home price gains in the National Association of Realtors’ quarterly survey of 178 metro areas.

Nationwide prices were up about half the rate of D-FW’s year-over-year gain, rising 5.7 percent.

Prices were up in all but 11 markets the Realtors survey each quarter. And across the U.S., median sales prices are back to peak levels of a decade ago, according to the Realtors.

“Buyer interest stayed elevated in most areas thanks to mortgage rates under 4 percent for most of the year and the creation of 1.7 million new jobs, edging the job market closer to full employment,” Realtors chief economist Lawrence Yun said in the report. “At the same time, the inability for supply to catch up with this demand drove prices higher and continued to put a tight affordability squeeze on those trying to reach the market.

“Depressed new and existing inventory conditions led to several of the largest metro areas seeing near or above double-digit appreciation, which has pushed home values to record highs in a slight majority of markets.”

Median D-FW home sales prices in the final three months of 2016 hit $230,600 — the highest ever in the Realtors’ survey and just behind the nationwide median price of $235,000.

D-FW had the greatest fourth-quarter price bump among Texas’ major markets. Austin had the second-largest year-over-year gain at 8.5 percent.

North Texas home prices have risen more than 40 percent in the last four years.

The largest fourth-quarter national price gains were in Rockford, Ill., up 25 percent from a year earlier; Elmira, N.Y. (21.8 percent); and Yakima, Wash. (18.7 percent).

The Waterloo-Cedar Falls, Iowa area had the top national decline with prices down 7.5 percent.

Last year, 87 percent of U.S. markets had home price increases, according to the Realtors. The increase in many areas, including D-FW, is largely due to a lack of inventory.

At the end of 2016, there were 1.65 million existing homes available for sale with real estate agents — 6.3 percent fewer than a year earlier. That’s the lowest level of homes on the market since the Realtors began tracking listing supply in 1999.

Forecasts for this year point toward a slower market in some cities because of higher finance costs.

“Even a pickup in wage growth may be insufficient to compensate the impact of higher mortgage rates and home prices,” Yun said.

Real estate outlook questionable heading into 2017 – Glens Falls Post

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Houston-area home prices jump 7.3 percent in 4th quarter, report says

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Strong sales in the fourth quarter pushed the nation’s supply of available homes to record lows and boosted prices in a majority of metro areas, including Houston, the National Association of Realtors reported.

Prices rose in 158 out of 178 metro areas, reaching a median of $235,000 in the fourth quarter, a gain of 5.7 percent from the fourth quarter of 2015.

In Houston, the median sales price gained 7.3 percent year-over-year to $224,500 in the fourth quarter. The rate of appreciation was even higher in Dallas, San Antonio and Austin. 


“Buyer interest stayed elevated in most areas thanks to mortgage rates under 4 percent for most of the year and the creation of 1.7 million new jobs edging the job market closer to full employment,” Lawrence Yun, NAR chief economist, said in an statement.

RELATED: Single-family home sales rise as higher interest rates push buyers into market

“At the same time, the inability for supply to catch up with this demand drove prices higher and continued to put a tight affordability squeeze on those trying to reach the market.”

Homes cost nearly five times as much as the Houston median in the nation’s most expensive market. Homes in San Jose, Calif., sold for a median of $1,005,000 in the fourth quarter. The next most expensive metro areas were: San Francisco, $837,500; Anaheim-Santa Ana, Calif., $745,200; Honolulu, $740,200; and San Diego, $593,000.

Texas home prices

Median sales prices in the fourth quarter and change from fourth quarter 2015:

Abilene: $150,9000, -3.0%
Amarillo: $151,600, + 7.3%
Austin: $287,600, +8.5%
Beaumont: $153,200, +10.8%
Corpus Christi: $194,000, +8.6%
Dallas: $230,600, +11.8%
El Paso: $152,900, +7.4%
Houston: $224,500, +7.3%
San Antonio: $206,300, +7.4%
Sherman: $148,700, +9.2%
Wichita Falls: $118,900, +16.7%

Source: National Association of Realtors


The least expensive were Youngstown-Warren-Boardman, Ohio, $87,600; Decatur, Ill., $92,400; Cumberland, Md., $94,000; Rockford, Ill., $109,500; and Binghamton, NY, $109,700.

After a record number of home sales in 2016, Houston started the year with gains. Buyers snapped up 4,080 homes in the Houston area in January, up 1.7 percent from a year earlier, according to monthly data released Wednesday by the Houston Association of Realtors.

Nationally, home sales rose 3.3 percent to a seasonally adjusted annual rate of 5.57 million in the fourth quarter from the third quarter of 2016. The sales rose 7.1 percent over the fourth quarter of 2015. The average supply was 3.9 months in the fourth quartered compared with 4.6 months a year earlier.

Home prices reached peak levels in majority of metros in 2016

The National Association of Realtors (NAR) released its latest Metropolitan Median Area Prices and Affordability report, which boasted the best quarterly sales pace of the year and the highest sales prices since 2005 in half of the measured markets.

The median existing single-family price increased in 158 out of 179 measured markets, and only 20 markets reported lower median prices compared to Q4 2015. Furthermore, 31 metro areas experienced double-digit increases — a 14 percent year-over-year increase.

“Buyer interest stayed elevated in most areas thanks to mortgage rates under 4 percent for most of the year and the creation of 1.7 million new jobs edging the job market closer to full employment,” said NAR Chief Economist Lawrence Yun.

“At the same time, the inability for supply to catch up with this demand drove prices higher and continued to put a tight affordability squeeze on those trying to reach the market.”

Median prices and incomes

The national median single-family home price in Q4 was $235,000, a 5.4 percent quarter-over-quarter and 5.7 percent year-over-year increase.

Despite the median household income increasing to $70,831, higher home prices and a spike in mortgage rates weakened affordability from 2015. In order to buy a single-family home at the national median price, a buyer making a 5 percent down payment would need a yearly income of $51,017.

A buyer making a 10 percent down payment would need a yearly income of $48,332 and a buyer making a 20 percent down payment would need a yearly income of $42,962.

Yun says higher median household incomes wouldn’t be enough to offset the impact of higher home prices and mortgage rates.

“Even a pick-up in wage growth may be insufficient to compensate the impact of higher mortgage rates and home prices,” he noted.  “Increased homebuilding will be crucial to alleviate supply shortages and stave off the affordability hit.”

The areas where buyers are feeling the crunch from high median home prices are:

  • San Jose, California ($1,005,000)
  • San Francisco ($837,500)
  • Anaheim-Santa Ana, California ($745,200)
  • Urban Honolulu ($740,200)
  • San Diego ($593,000)

The five most affordable cities are:

  • Youngstown-Warren-Boardman, Ohio ($87,600)
  • Decatur, Illinois ($92,400)
  • Cumberland, Maryland ($94,000)
  • Rockford, Illinois ($109,500)
  • Binghamton, New York ($109,700)

Regional breakdown

In the Northeast, existing-home sales jumped 10.5 percent in the fourth quarter and are now 6.4 percentage points above the fourth quarter of 2015. The median existing single-family home price was $254,100, a 0.2 percent year-over-year decrease.

In the Midwest, existing-home sales rose 2.3 percent in the fourth quarter and are 8.8 percentage points above a year ago. The median existing single-family home price was $181,000, a 5.7 percent year-over-year increase.

In the South, existing-home sales increased 2.6 percent in the fourth quarter and are 5.4 percentage points higher than the fourth quarter of 2015. The median existing single-family home price was $210,500, a 7.9 percent year-over-year increase.

In the West, existing-home sales rose 1.6 percent in the fourth quarter and are 9.1 percentage points above a year ago. The median existing single-family home price was $348,800, a 7.8 percent year-over-year increase.

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Pending home sales rise more than expected

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Home Prices Reached Peak Levels In Majority Of Metros In 2016

The National Association of Realtors (NAR) released its latest Metropolitan Median Area Prices and Affordability report, which boasted the best quarterly sales pace of the year and the highest sales prices since 2005 in half of the measured markets.

The median existing single-family price increased in 158 out of 179 measured markets, and only 20 markets reported lower median prices compared to Q4 2015. Furthermore, 31 metro areas experienced double-digit increases — a 14 percent year-over-year increase.

“Buyer interest stayed elevated in most areas thanks to mortgage rates under 4 percent for most of the year and the creation of 1.7 million new jobs edging the job market closer to full employment,” said NAR Chief Economist Lawrence Yun.

“At the same time, the inability for supply to catch up with this demand drove prices higher and continued to put a tight affordability squeeze on those trying to reach the market.”

Median prices and incomes

The national median single-family home price in Q4 was $235,000, a 5.4 percent quarter-over-quarter and 5.7 percent year-over-year increase.

Despite the median household income increasing to $70,831, higher home prices and a spike in mortgage rates weakened affordability from 2015. In order to buy a single-family home at the national median price, a buyer making a 5 percent down payment would need a yearly income of $51,017.

A buyer making a 10 percent down payment would need a yearly income of $48,332 and a buyer making a 20 percent down payment would need a yearly income of $42,962.

Yun says higher median household incomes wouldn’t be enough to offset the impact of higher home prices and mortgage rates.

“Even a pick-up in wage growth may be insufficient to compensate the impact of higher mortgage rates and home prices,” he noted.  “Increased homebuilding will be crucial to alleviate supply shortages and stave off the affordability hit.”

The areas where buyers are feeling the crunch from high median home prices are:

  • San Jose, California ($1,005,000)
  • San Francisco ($837,500)
  • Anaheim-Santa Ana, California ($745,200)
  • Urban Honolulu ($740,200)
  • San Diego ($593,000)

The five most affordable cities are:

  • Youngstown-Warren-Boardman, Ohio ($87,600)
  • Decatur, Illinois ($92,400)
  • Cumberland, Maryland ($94,000)
  • Rockford, Illinois ($109,500)
  • Binghamton, New York ($109,700)

Regional breakdown

In the Northeast, existing-home sales jumped 10.5 percent in the fourth quarter and are now 6.4 percentage points above the fourth quarter of 2015. The median existing single-family home price was $254,100, a 0.2 percent year-over-year decrease.

In the Midwest, existing-home sales rose 2.3 percent in the fourth quarter and are 8.8 percentage points above a year ago. The median existing single-family home price was $181,000, a 5.7 percent year-over-year increase.

In the South, existing-home sales increased 2.6 percent in the fourth quarter and are 5.4 percentage points higher than the fourth quarter of 2015. The median existing single-family home price was $210,500, a 7.9 percent year-over-year increase.

In the West, existing-home sales rose 1.6 percent in the fourth quarter and are 9.1 percentage points above a year ago. The median existing single-family home price was $348,800, a 7.8 percent year-over-year increase.

Email Marian McPherson

National Association of Real Estate Brokers hosts Inaugural Meeting of the Year

Staff Writer

The National Association of Real Estate Brokers (NAREB) held their first meeting of 2017 honoring and recognizing their membership with their accomplishments and achievements for 2016 and setting the foundation for 2017 adopting the theme “The Best is Yet to Come”

NAREB President Denise Matthis interviewed REALTIST Top Producer Lani Sylvas with Coldwell Banker West who shared “Her Story” and her mission, passion and how her career in real estate has evolved. Also interviewed was REALTIST Cecilie Nelson, Community Service Commissioner with the City of Temecula whose community involvement started because she was “excluded” and not included.

Each REALTIST member presented their passion for joining NAREB and their goals of helping other rebuild wealth thru homeownership thru Advocacy, Activism and Action as they move forward with the initiative given by the National Office of “2 Million New Black Homeowners in Five Years”.

California Association of Real Estate Brokers President, Steve Peterson of Oakland, California delivered the message of “Why NAREB” and reinforced the mission of taking the lead of rebuilding “Black Wealth thru Homeownership”

A special presentation from the Greater San Diego Association of Realtor Director Mark Powell, also an adjunct Professor and recently elected to the County School Board was presented to Frances K. Jackson, Realtist Pioneer. It was befitting that Powell, presented the Realtor Emeritus Certificate to Jackson, also an Adjunct Professor on the Association of Realtors campus where she was one of the first Blacks “allowed” to join the Realtor Association in San Diego.

NAREB was founded in 1947 out of the need to represent people of color in homeownership when they were not allowed to sit at the table of the white Realtor Board. NAREB President Denise Matthis currently serves on the Greater San Diego Association of Realtor Board as a Director where Mr. Theo Logan, of Logan Realty, served as the first Black President of the Association of Realtors in 1978.

The local chapter of NAREB was founded in 2009 and they currently conduct home buyer seminars and financial literacy workshops working with other non-profits in the County.  For upcoming events visit our website www.narebsd.org

Wayne Hugendubel Re‐Appointed Director to New Haven Middlesex Association of Realtors®

Wayne Hugendubel ReAppointed Director to New Haven Middlesex Association of Realtors

 

Wayne Hugendubel, of Orange has been re‐appointed to the Board of Directors for The New Haven Middlesex Association of REALTORS® (NHMR) for a one‐year term.  Wayne Hugendubel is a REALTOR with Coldwell Banker Residential Brokerage, located in Orange.  He has been a real estate agent for 33 years and specializes in residential real estate.  He holds the following designations: CRS – Certified Residential Specialist and ABR – Accredited Buyer Representative.

“Wayne will be a dynamic addition to our Board of Directors,” said NHMR CEO Dawn Calvo.  “Directors are nominated by fellow board members and voted on by our general membership.  His nomination and approval are a testament to his/her professionalism, knowledge and the respect he/she has gained throughout the real estate community.”

REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.  The New Haven Middlesex Association of REALTORS is “The Voice for Real Estate” for New Haven and Middlesex counties.  The Association is comprised of over 2,700 members and is the second largest Realtor association in the state.  NHMR provides professional development, education, programs and resources for Realtors and appraisers.  NHMR is an advocate for issues whose purpose is to preserve the free enterprise system and to protect the rights of private property owners.

Housing Shortage Fuels Price Gains

The number of homes for sale fell to the lowest level in nearly two decades in the fourth quarter, lifting prices and raising concerns that young buyers are being shut out of the market.

The median price of an existing single-family home increased in 89% of metropolitan areas in the fourth quarter compared with a year earlier, the National…