With the Holidays fast approaching, Mortgage Distress will weigh heavily on the minds, hearts, & Homes of many...
Early warning Signs for distress:
-Rising Debt
-Job Loss
-Illness
-Divorce
-Death
-ARM Adjustment
-Major Expense
-Excessive Debt
Strategies to Avoid Foreclosure
-Be Proactive
-Contact the Lender
-Read the Mail
-Contact HUD
-Prioritize Expenses
-Generate Cash
-Dont get scammed
-CONTACT A REALTOR ASAP!
If you or anyone you know are experiencing any of signs for mortgage distress, please contact us for additional support.
The Cadwallader Group
Coldwell Banker Res., NRT, LLC, EHO
Home sales surge in April; prices lag again
Home sales surge in April; prices lag again
By JONATHAN BILYK - jbilyk@kcchronicle.com
April proved to be yet another good month for home sales in the Fox Valley.
However, while the number of homes sold surged yet again, the prices fetched by sellers continued to lag behind....
Entire article @
http://www.kcchronicle.com/articles/2010/05/25/99665870/index.xml
I truly believe we will see a tremendous slowdown in the overall market and a complete lack of activity in the homes priced over $600,000.
It will not stay bad for very long, as by this time next year, we will see steady, reasonable activity in most price ranges.
By JONATHAN BILYK - jbilyk@kcchronicle.com
April proved to be yet another good month for home sales in the Fox Valley.
However, while the number of homes sold surged yet again, the prices fetched by sellers continued to lag behind....
Entire article @
http://www.kcchronicle.com/articles/2010/05/25/99665870/index.xml
I truly believe we will see a tremendous slowdown in the overall market and a complete lack of activity in the homes priced over $600,000.
It will not stay bad for very long, as by this time next year, we will see steady, reasonable activity in most price ranges.
With May activity nearing a crawl, the data from April is out.
Here is a message from our President, Fran Broude:
Existing-Home Sales Continue to Improve in April
WASHINGTON (May 24, 2010) – Existing-home sales rose again in April with buyers motivated by the tax credit, improving consumer confidence and favorable affordability conditions, according to the National Association of Realtors®.
Existing-home sales(1), which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.
Lawrence Yun, NAR chief economist, said the gain was widely anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” he said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.10 percent in April from 4.97 percent in March; the rate was 4.91 percent in April 2009.
Total housing inventory at the end of April rose 11.5 percent to 4.04 million existing homes available for sale, which represents an 8.4-month supply(2) at the current sales pace, up from an 8.1-month supply in March. Raw unsold inventory is 2.7 percent above a year ago, but remains 11.6 percent below the record of 4.58 million in July 2008.
“Although inventory levels remain above normal and much of the gain last month was seasonal, the housing price correction appears essentially over,” Yun said. “In fact, a majority of the markets have seen price gains recently. A return to old-fashioned responsible lending and buying will help the housing market avoid disruptive and painful bubble-bust cycles.”
The national median existing-home price(3) for all housing types was $173,100 in April, up 4.0 percent from April 2009. Distressed homes accounted for 33 percent of sales last month, compared with 35 percent in March.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said buyer traffic is mixed. “It looks like the level of home sales that close in May and June will stay elevated, but many buyers remain in the market even without the tax credit,” she said. “Some Realtors® tell us they are very busy with clients who are entering the market now as a result of improved conditions, while others are welcoming a slowdown from frantic market conditions in recent months.
“Buyers are focused on finding the right house and taking advantage of favorable affordability conditions. For many buyers, owning a home is a lifestyle choice. They want a place of their own to raise a family, build memories, and be part of a larger community,” Golder said.
A parallel NAR practitioner survey(4) shows first-time buyers purchased 49 percent of homes in April, up from 44 percent in March. Investors accounted for 15 percent of transactions in April, down from 19 percent in March; the remaining sales were to repeat buyers. All-cash sales stood at 26 percent in April; they were 27 percent in March.
Single-family home sales rose 7.4 percent to a seasonally adjusted annual rate of 5.05 million in April from a pace of 4.70 million in March, and are 20.5 percent above the 4.19 million level in April 2009. The median existing single-family home price was $173,400 in April, up 4.5 percent from a year ago.
Single-family median prices rose in 18 out of 20 metropolitan statistical areas reported in April from a year ago; six of the areas experienced double-digit increases. In data recently reported for the first quarter, 91 out of 152 metros saw price gains.
Existing condominium and co-op sales jumped 9.1 percent to a seasonally adjusted annual rate of 720,000 in April from 660,000 in March, and are 42.3 percent above the 506,000-unit pace in April 2009. The median existing condo price(5) was $171,000 in April, which is 0.6 percent below a year ago. Regionally, existing-home sales in the Northeast surged 21.1 percent to an annual level of 1.09 million in April and are 41.6 percent higher than a year ago. The median price in the Northeast was $243,000, up 2.1 percent from April 2009.
Existing-home sales in the Midwest rose 9.9 percent in April to a pace of 1.33 million and are 29.1 percent above a year ago. The median price in the Midwest was $146,400, up 5.8 percent from April 2009.
In the South, existing-home sales increased 8.6 percent to an annual level of 2.14 million in April and are 23.0 percent higher than April 2009. The median price in the South was $150,000, up 1.2 percent from a year ago.
Existing-home sales in the West fell 6.2 percent to an annual rate of 1.21 million in April but are 5.2 percent above a year ago. The median price in the West was $212,400, up 3.8 percent from April 2009.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: NAR also reports monthly comparisons of existing single-family home sales and median prices for 20 select metropolitan statistical areas, which is posted with other tables at: www.realtor.org/research/research/ehsdata. For information on areas not included in the report, please contact the
local association of Realtors®.
(1) Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions. The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns. Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
(2) Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).
(3) The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
(4) First-time buyer and distressed sales data are from the Realtors® Confidence Index.
(5) Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for May will be released June 22. The next Pending Home Sales Index is scheduled for June 2; release times are 10 a.m. EDT.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.
Fran Broude
President/COO
Coldwell Banker Residential Brokerage
Existing-Home Sales Continue to Improve in April
WASHINGTON (May 24, 2010) – Existing-home sales rose again in April with buyers motivated by the tax credit, improving consumer confidence and favorable affordability conditions, according to the National Association of Realtors®.
Existing-home sales(1), which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.
Lawrence Yun, NAR chief economist, said the gain was widely anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” he said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.10 percent in April from 4.97 percent in March; the rate was 4.91 percent in April 2009.
Total housing inventory at the end of April rose 11.5 percent to 4.04 million existing homes available for sale, which represents an 8.4-month supply(2) at the current sales pace, up from an 8.1-month supply in March. Raw unsold inventory is 2.7 percent above a year ago, but remains 11.6 percent below the record of 4.58 million in July 2008.
“Although inventory levels remain above normal and much of the gain last month was seasonal, the housing price correction appears essentially over,” Yun said. “In fact, a majority of the markets have seen price gains recently. A return to old-fashioned responsible lending and buying will help the housing market avoid disruptive and painful bubble-bust cycles.”
The national median existing-home price(3) for all housing types was $173,100 in April, up 4.0 percent from April 2009. Distressed homes accounted for 33 percent of sales last month, compared with 35 percent in March.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said buyer traffic is mixed. “It looks like the level of home sales that close in May and June will stay elevated, but many buyers remain in the market even without the tax credit,” she said. “Some Realtors® tell us they are very busy with clients who are entering the market now as a result of improved conditions, while others are welcoming a slowdown from frantic market conditions in recent months.
“Buyers are focused on finding the right house and taking advantage of favorable affordability conditions. For many buyers, owning a home is a lifestyle choice. They want a place of their own to raise a family, build memories, and be part of a larger community,” Golder said.
A parallel NAR practitioner survey(4) shows first-time buyers purchased 49 percent of homes in April, up from 44 percent in March. Investors accounted for 15 percent of transactions in April, down from 19 percent in March; the remaining sales were to repeat buyers. All-cash sales stood at 26 percent in April; they were 27 percent in March.
Single-family home sales rose 7.4 percent to a seasonally adjusted annual rate of 5.05 million in April from a pace of 4.70 million in March, and are 20.5 percent above the 4.19 million level in April 2009. The median existing single-family home price was $173,400 in April, up 4.5 percent from a year ago.
Single-family median prices rose in 18 out of 20 metropolitan statistical areas reported in April from a year ago; six of the areas experienced double-digit increases. In data recently reported for the first quarter, 91 out of 152 metros saw price gains.
Existing condominium and co-op sales jumped 9.1 percent to a seasonally adjusted annual rate of 720,000 in April from 660,000 in March, and are 42.3 percent above the 506,000-unit pace in April 2009. The median existing condo price(5) was $171,000 in April, which is 0.6 percent below a year ago. Regionally, existing-home sales in the Northeast surged 21.1 percent to an annual level of 1.09 million in April and are 41.6 percent higher than a year ago. The median price in the Northeast was $243,000, up 2.1 percent from April 2009.
Existing-home sales in the Midwest rose 9.9 percent in April to a pace of 1.33 million and are 29.1 percent above a year ago. The median price in the Midwest was $146,400, up 5.8 percent from April 2009.
In the South, existing-home sales increased 8.6 percent to an annual level of 2.14 million in April and are 23.0 percent higher than April 2009. The median price in the South was $150,000, up 1.2 percent from a year ago.
Existing-home sales in the West fell 6.2 percent to an annual rate of 1.21 million in April but are 5.2 percent above a year ago. The median price in the West was $212,400, up 3.8 percent from April 2009.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: NAR also reports monthly comparisons of existing single-family home sales and median prices for 20 select metropolitan statistical areas, which is posted with other tables at: www.realtor.org/research/research/ehsdata. For information on areas not included in the report, please contact the
local association of Realtors®.
(1) Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions. The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns. Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
(2) Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).
(3) The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
(4) First-time buyer and distressed sales data are from the Realtors® Confidence Index.
(5) Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for May will be released June 22. The next Pending Home Sales Index is scheduled for June 2; release times are 10 a.m. EDT.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.
Fran Broude
President/COO
Coldwell Banker Residential Brokerage
Good News for Chicagoland
A message sent over from the President of Coldwell Banker Residential Brokerage, Fran Broude.
From Crain's:
Chicago-area home prices show first signs of recovery after three-year slide
By Alby Gallun
April 26, 2010
Home prices are rising again in some Chicago-area neighborhoods, in a sign that the local housing market is nearing the end of a devastating three-year slide.
Single-family home prices rose in 56 of 253 Chicago-area ZIP codes last year, according to Fiserv Inc., which calculates the widely followed Case-Shiller Home Price Index. It's the first gain since 2006 in any of the local ZIP codes Fiserv tracks.
Declines slowed sharply across the region, suggesting the worst erosion of home values is over. Prices in the area fell 2.8% last year, compared with 16.3% in 2008.
The data, provided exclusively to Crain's, offer the most detailed and accurate survey of single-family home prices. Fiserv tracks price changes at the ZIP-code level and compares repeat sales of the same properties.
The numbers reveal an uneven recovery, with gains concentrated in neighborhoods hit early by the foreclosure crisis. Double-digit declines continue in outlying suburbs.
It's "very good news" that the market "is beginning to show signs of stability in selected areas," Schaumburg-based housing consultant Tracy Cross says. "On the negative side, you still have areas that are saturated with a high number of foreclosures."
As prices approach a bottom, it's possible to start assessing the damage. Parts of metropolitan Chicago have seen a decade or more of home price appreciation erased in three years. At the end of 2009, the local price index had plunged 25.8% from its peak in the first quarter of 2007 to its level in first-quarter 2003.
ANOTHER SLIP
Home values aren't expected to regain much ground soon. Fiserv predicts Chicago-area prices will slip another 2.6% this year and rise just 0.2% in 2011.
Falling prices, low interest rates and the federal housing tax credit have helped boost demand, but generally not enough to offset high foreclosure rates and the miserable job market.
"Until we start creating jobs on a regular basis, I don't think (the market) is going to turn around," says Prudential Rubloff agent James Horwath of Chicago. "I think it's going to be another tough year still."
Over the past three years, prices fell in every ZIP code Fiserv tracks, but some areas weathered the slump better than others. The picture is bleak in suburbs like Cicero and South Side neighborhoods like South Shore, which have suffered drops exceeding 40% since 2006. Homeowners from the Gold Coast north to Uptown fared the best, with declines ranging from 11% to 15.3%.
But buyers are "finally getting off the fence," says Jennifer Ames, a Coldwell Banker agent who works in affluent North Side neighborhoods like Lincoln Park and Lakeview.
Ms. Ames brought a four-bedroom brick Victorian at 852 W. Webster Ave. to the market on Feb. 22 with an asking price of $1.4 million. A buyer signed a contract on the house three weeks later.
"We're definitely seeing the spring market we didn't see last year," Ms. Ames says, declining to disclose the sale price.
While prices fell slightly on her turf last year — the 60614 ZIP code sustained a 2.5% drop — they surged in the least likely of places: economically depressed Chicago neighborhoods like Austin, which saw a 20.2% gain, and south suburban Harvey, which led the market with a 28.4% increase.
It's unclear, bordering on inexplicable, why prices bounced back last year in communities with soaring unemployment and foreclosure rates, but one pattern is obvious: The ZIP codes that gained the most last year suffered some of the biggest price drops in 2008.
The same trend has emerged in other cities, Fiserv Vice-president David Stiff says. Though he hasn't studied the Chicago market, Mr. Stiff posits that foreclosure sales in prior years may have depressed values in some ZIP codes so much that prices are surging as distressed sales taper off and the market starts returning to normal.
HOLDING OFF
James Shilling, director of DePaul University's Institute for Housing Studies, says lenders that foreclosed on homes in the most distressed areas are holding off on selling those properties so as not to flood the market and depress prices.
Whatever the reason, it will be several years before homeowners in many ZIP codes get back to boom-era prices. Home values in some south suburbs are down to 1998 to 2000 levels, according to Wisconsin-based Fiserv. Crete was the biggest long-term loser, notching price declines of 5.3% over the past decade, while Lincoln Square led the Chicago market with a 10-year gain of 72.2%.
Last year, single-family home values rose 1.2% in Lincoln Square's 60625, one of 56 local ZIP codes to notch a gain, according to Fiserv. Other winners included Oak Park's 60302, with a 4.2% increase; 60618, covering Irving Park and Avondale, 4.1%, and 60640 in Edgewater and Uptown, 2.1%.
Though some areas may be close to turning a corner, they don't include distant suburbs like Waukegan, Round Lake and Zion, which suffered double-digit declines last year. Prices fell 10.2% in west suburban Yorkville, where foreclosures and overdevelopment have depressed prices.
The Yorkville market, says Century 21 Pro-Team agent Kathy Grabow of Aurora, "just got caught with overbuilding."
From Crain's:
Chicago-area home prices show first signs of recovery after three-year slide
By Alby Gallun
April 26, 2010
Home prices are rising again in some Chicago-area neighborhoods, in a sign that the local housing market is nearing the end of a devastating three-year slide.
Single-family home prices rose in 56 of 253 Chicago-area ZIP codes last year, according to Fiserv Inc., which calculates the widely followed Case-Shiller Home Price Index. It's the first gain since 2006 in any of the local ZIP codes Fiserv tracks.
Declines slowed sharply across the region, suggesting the worst erosion of home values is over. Prices in the area fell 2.8% last year, compared with 16.3% in 2008.
The data, provided exclusively to Crain's, offer the most detailed and accurate survey of single-family home prices. Fiserv tracks price changes at the ZIP-code level and compares repeat sales of the same properties.
The numbers reveal an uneven recovery, with gains concentrated in neighborhoods hit early by the foreclosure crisis. Double-digit declines continue in outlying suburbs.
It's "very good news" that the market "is beginning to show signs of stability in selected areas," Schaumburg-based housing consultant Tracy Cross says. "On the negative side, you still have areas that are saturated with a high number of foreclosures."
As prices approach a bottom, it's possible to start assessing the damage. Parts of metropolitan Chicago have seen a decade or more of home price appreciation erased in three years. At the end of 2009, the local price index had plunged 25.8% from its peak in the first quarter of 2007 to its level in first-quarter 2003.
ANOTHER SLIP
Home values aren't expected to regain much ground soon. Fiserv predicts Chicago-area prices will slip another 2.6% this year and rise just 0.2% in 2011.
Falling prices, low interest rates and the federal housing tax credit have helped boost demand, but generally not enough to offset high foreclosure rates and the miserable job market.
"Until we start creating jobs on a regular basis, I don't think (the market) is going to turn around," says Prudential Rubloff agent James Horwath of Chicago. "I think it's going to be another tough year still."
Over the past three years, prices fell in every ZIP code Fiserv tracks, but some areas weathered the slump better than others. The picture is bleak in suburbs like Cicero and South Side neighborhoods like South Shore, which have suffered drops exceeding 40% since 2006. Homeowners from the Gold Coast north to Uptown fared the best, with declines ranging from 11% to 15.3%.
But buyers are "finally getting off the fence," says Jennifer Ames, a Coldwell Banker agent who works in affluent North Side neighborhoods like Lincoln Park and Lakeview.
Ms. Ames brought a four-bedroom brick Victorian at 852 W. Webster Ave. to the market on Feb. 22 with an asking price of $1.4 million. A buyer signed a contract on the house three weeks later.
"We're definitely seeing the spring market we didn't see last year," Ms. Ames says, declining to disclose the sale price.
While prices fell slightly on her turf last year — the 60614 ZIP code sustained a 2.5% drop — they surged in the least likely of places: economically depressed Chicago neighborhoods like Austin, which saw a 20.2% gain, and south suburban Harvey, which led the market with a 28.4% increase.
It's unclear, bordering on inexplicable, why prices bounced back last year in communities with soaring unemployment and foreclosure rates, but one pattern is obvious: The ZIP codes that gained the most last year suffered some of the biggest price drops in 2008.
The same trend has emerged in other cities, Fiserv Vice-president David Stiff says. Though he hasn't studied the Chicago market, Mr. Stiff posits that foreclosure sales in prior years may have depressed values in some ZIP codes so much that prices are surging as distressed sales taper off and the market starts returning to normal.
HOLDING OFF
James Shilling, director of DePaul University's Institute for Housing Studies, says lenders that foreclosed on homes in the most distressed areas are holding off on selling those properties so as not to flood the market and depress prices.
Whatever the reason, it will be several years before homeowners in many ZIP codes get back to boom-era prices. Home values in some south suburbs are down to 1998 to 2000 levels, according to Wisconsin-based Fiserv. Crete was the biggest long-term loser, notching price declines of 5.3% over the past decade, while Lincoln Square led the Chicago market with a 10-year gain of 72.2%.
Last year, single-family home values rose 1.2% in Lincoln Square's 60625, one of 56 local ZIP codes to notch a gain, according to Fiserv. Other winners included Oak Park's 60302, with a 4.2% increase; 60618, covering Irving Park and Avondale, 4.1%, and 60640 in Edgewater and Uptown, 2.1%.
Though some areas may be close to turning a corner, they don't include distant suburbs like Waukegan, Round Lake and Zion, which suffered double-digit declines last year. Prices fell 10.2% in west suburban Yorkville, where foreclosures and overdevelopment have depressed prices.
The Yorkville market, says Century 21 Pro-Team agent Kathy Grabow of Aurora, "just got caught with overbuilding."
Strong Gains in Re-Sale Home Sales
Fourth Quarter Existing-Home Sales Surge in Most States, Prices Up in More Areas
WASHINGTON (February 11, 2010) – Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the National Association of RealtorsÒ.
Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.
Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate1 of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.
Lawrence Yun, NAR chief economist, said the first-time home buyer tax credit was the dominant factor. “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he said. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92 percent in the fourth quarter from 5.16 percent in the third quarter; it was 5.86 percent in the fourth quarter of 2008.
In the fourth quarter, 67 out of 151 metropolitan statistical areas2 reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases; one was unchanged and 84 metros had price declines. In the third quarter only 30 MSAs showed annual price increases and 123 areas were down.
The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun said.
Fourth Quarter Metro Prices/State Resales – add 1
“Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” Yun said.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said near-term market conditions will remain favorable. “Mortgage interest rates are expected to trend up later this year, but right now we have very good conditions with steadying home prices and favorable inventory in most areas, especially in the higher price ranges,” she said.
“The biggest issue is for repeat buyers, who will have to accelerate their buying plans if they want the expanded tax credit. Since you must have a contract in place by the end of April, the best advice is to consult a RealtorÒ now about qualification criteria and options in your area,” Golder said.
Repeat buyers do not have to sell their existing home, but all buyers must occupy the property they purchase as a primary residence to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.
In the condo sector, metro area condominium and cooperative prices – covering changes in 54 metro areas – showed the national median existing-condo price was $177,300 in the fourth quarter, down 4.8 percent from the fourth quarter of 2008. Eleven metros showed increases in the median condo price from a year earlier and 43 areas had declines; in the third quarter only four metros experienced annual price gains.
Regionally, existing-home sales in the Northeast rose 11.1 percent in the fourth quarter to a pace of 1.03 million and are 33.6 percent higher than a year ago. The median existing single-family home price in the Northeast declined 5.6 percent to $234,900 in the fourth quarter from the same quarter in 2008, but with widely varying conditions.
“In the Northeast, markets with lower median prices that have avoided wide swings, such as Buffalo, are generally showing consistent price gains,” Yun said. “Even so, some of the higher cost areas are showing signs of stabilization, such as Nassau-Suffolk, N.Y., and Boston.”
In the Midwest, existing-home sales jumped 14.5 percent in the fourth quarter to a pace of 1.38 million and are 29.9 percent above a year ago. The median existing single-family home price in the Midwest rose 1.1 percent to $141,100 in the fourth quarter from the same period in 2008, with the region accounting for the majority of metro areas experiencing double-digit gains.
Yun said markets with high unemployment rates in Ohio and Michigan experienced large price swings. “Big price gains in many Midwestern areas are due to a more normal range of home sales in contrast with predominately foreclosed sales a year ago,” he said.
Fourth Quarter Metro Prices/State Resales – add 3
In the South, existing-home sales rose 13.8 percent in the fourth quarter to an annual rate of 2.23 million and are 28.2 percent higher than the fourth quarter of 2008. The median existing single-family home price in the South was $153,000 in the fourth quarter, down 2.4 percent from a year earlier.
“Affordable markets in the South that have relatively better local economies are seeing healthy price gains, such as Houston, Oklahoma City and Shreveport, La.,” Yun said.
Existing-home sales in the West jumped 16.2 percent in the fourth quarter to an annual rate of 1.38 million and are 18.2 percent above a year ago. The median existing single-family home price in the West was $227,200 in the fourth quarter, which is 8.9 percent below the fourth quarter of 2008, but with many areas showing notable gains.
“Markets in the West such as San Francisco, San Jose and Denver are showing double-digit price increases, and other markets like San Diego and Anaheim have begun to firm up,” Yun said.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: Data tables for both metro area home prices and state existing-home sales are posted at:
www.realtor.org/research/research/metroprice. For areas not covered in the tables, please contact the local association of Realtors®.
There often are differences between NAR’s data and locally reported data because of differences in methodology, which may include the geographic coverage area, housing types, and Census benchmarking used in NAR’s model. More importantly, there is a parallel between the percentage changes over time that is typically seen even when using different methodologies.
1The seasonally adjusted annual rate for a particular quarter represents what the total number of actual sales for a year would be if the relative sales pace for that quarter was maintained for four consecutive quarters. Total home sales include single family, townhomes, condominiums and co-operative housing. NAR began tracking the state sales series in 1981.
Seasonally adjusted rates are used in reporting quarterly data to factor out seasonal variations in resale activity. For example, sales volume normally is higher in the summer and relatively light in winter, primarily because of differences in the weather and household buying patterns.
2Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. A list of counties included in MSA definitions is available at:
www.census.gov/population/estimates/metro-city/0312msa.txt
Regional median home prices include rural areas and samples of many smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns.
NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series dates back to 1989.
Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. As the reporting sample expands in the future, additional areas will be included in the condo price report.
First quarter metro area home price and state resale data will be released May 11 at 10 a.m. EDT.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.
Fran Broude
President/COO
WASHINGTON (February 11, 2010) – Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the National Association of RealtorsÒ.
Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.
Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate1 of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.
Lawrence Yun, NAR chief economist, said the first-time home buyer tax credit was the dominant factor. “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he said. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92 percent in the fourth quarter from 5.16 percent in the third quarter; it was 5.86 percent in the fourth quarter of 2008.
In the fourth quarter, 67 out of 151 metropolitan statistical areas2 reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases; one was unchanged and 84 metros had price declines. In the third quarter only 30 MSAs showed annual price increases and 123 areas were down.
The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun said.
Fourth Quarter Metro Prices/State Resales – add 1
“Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” Yun said.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said near-term market conditions will remain favorable. “Mortgage interest rates are expected to trend up later this year, but right now we have very good conditions with steadying home prices and favorable inventory in most areas, especially in the higher price ranges,” she said.
“The biggest issue is for repeat buyers, who will have to accelerate their buying plans if they want the expanded tax credit. Since you must have a contract in place by the end of April, the best advice is to consult a RealtorÒ now about qualification criteria and options in your area,” Golder said.
Repeat buyers do not have to sell their existing home, but all buyers must occupy the property they purchase as a primary residence to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.
In the condo sector, metro area condominium and cooperative prices – covering changes in 54 metro areas – showed the national median existing-condo price was $177,300 in the fourth quarter, down 4.8 percent from the fourth quarter of 2008. Eleven metros showed increases in the median condo price from a year earlier and 43 areas had declines; in the third quarter only four metros experienced annual price gains.
Regionally, existing-home sales in the Northeast rose 11.1 percent in the fourth quarter to a pace of 1.03 million and are 33.6 percent higher than a year ago. The median existing single-family home price in the Northeast declined 5.6 percent to $234,900 in the fourth quarter from the same quarter in 2008, but with widely varying conditions.
“In the Northeast, markets with lower median prices that have avoided wide swings, such as Buffalo, are generally showing consistent price gains,” Yun said. “Even so, some of the higher cost areas are showing signs of stabilization, such as Nassau-Suffolk, N.Y., and Boston.”
In the Midwest, existing-home sales jumped 14.5 percent in the fourth quarter to a pace of 1.38 million and are 29.9 percent above a year ago. The median existing single-family home price in the Midwest rose 1.1 percent to $141,100 in the fourth quarter from the same period in 2008, with the region accounting for the majority of metro areas experiencing double-digit gains.
Yun said markets with high unemployment rates in Ohio and Michigan experienced large price swings. “Big price gains in many Midwestern areas are due to a more normal range of home sales in contrast with predominately foreclosed sales a year ago,” he said.
Fourth Quarter Metro Prices/State Resales – add 3
In the South, existing-home sales rose 13.8 percent in the fourth quarter to an annual rate of 2.23 million and are 28.2 percent higher than the fourth quarter of 2008. The median existing single-family home price in the South was $153,000 in the fourth quarter, down 2.4 percent from a year earlier.
“Affordable markets in the South that have relatively better local economies are seeing healthy price gains, such as Houston, Oklahoma City and Shreveport, La.,” Yun said.
Existing-home sales in the West jumped 16.2 percent in the fourth quarter to an annual rate of 1.38 million and are 18.2 percent above a year ago. The median existing single-family home price in the West was $227,200 in the fourth quarter, which is 8.9 percent below the fourth quarter of 2008, but with many areas showing notable gains.
“Markets in the West such as San Francisco, San Jose and Denver are showing double-digit price increases, and other markets like San Diego and Anaheim have begun to firm up,” Yun said.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: Data tables for both metro area home prices and state existing-home sales are posted at:
www.realtor.org/research/research/metroprice. For areas not covered in the tables, please contact the local association of Realtors®.
There often are differences between NAR’s data and locally reported data because of differences in methodology, which may include the geographic coverage area, housing types, and Census benchmarking used in NAR’s model. More importantly, there is a parallel between the percentage changes over time that is typically seen even when using different methodologies.
1The seasonally adjusted annual rate for a particular quarter represents what the total number of actual sales for a year would be if the relative sales pace for that quarter was maintained for four consecutive quarters. Total home sales include single family, townhomes, condominiums and co-operative housing. NAR began tracking the state sales series in 1981.
Seasonally adjusted rates are used in reporting quarterly data to factor out seasonal variations in resale activity. For example, sales volume normally is higher in the summer and relatively light in winter, primarily because of differences in the weather and household buying patterns.
2Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. A list of counties included in MSA definitions is available at:
www.census.gov/population/estimates/metro-city/0312msa.txt
Regional median home prices include rural areas and samples of many smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns.
NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series dates back to 1989.
Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. As the reporting sample expands in the future, additional areas will be included in the condo price report.
First quarter metro area home price and state resale data will be released May 11 at 10 a.m. EDT.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.
Fran Broude
President/COO
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