News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Comments on Existing Home Sales: Too early to see impact of higher mortgage rates, Inventory has Bottomed
Bill McBride / Calculated Risk / August 21, 2013
First, the headline sales number was no surprise (see Lawler: Early Look at Existing Home Sales in July).
Second, the strong sales rate in July is not a sign that higher mortgage rates have had no impact on sales. The NAR reports CLOSED sales, and the usual escrow period is 45 to 60 days. Mortgage rates didn’t start increasing sharply until the 2nd half of May (see Freddie Mac Weekly Primary Mortgage Market Survey®), so buyers could have locked in rates in May – and pushed to close in July. My guess is sales will be down in August reflecting higher mortgage rates.
The key number inRead More
Stephen Melman / NAHB / July 22, 2013
Existing home sales decreased 1.2% in June, but were up 15.2% from the same period a year ago. The National Association of Realtors (NAR) reported that June 2013 total existing home sales were at a seasonally adjusted rate of 5.08 million units combined for single-family homes, townhomes, condominiums and co-ops. That compares to a downwardly revised 5.14 million units in May, and 4.41 million units during the same period a year ago. The Midwest reported the same sales level as the previous month, and the other three regions decreased slightly. All regions were up from a year ago: 17.5% in theRead More
Nick Timiraos / The Wall Street Journal / July 22, 2013
Sales of previously owned homes rose by 15.2% in June from one year ago to a seasonally adjusted annual rate of 5.08 million, but they were down by 1.2% from one month ago, according to the National Association of Realtors.
Monday’s report showed that the housing market may be slowly returning to equilibrium after a year in which demand has outstripped supply, pushing up prices. At the current pace of sales, there was a five-month supply of homes in June on a seasonally adjusted basis, up from the 4.9-month supply in May but down from the 6.1-month supply a year earlier.
Did higher interest ratesRead More
Dan Levy / Bloomberg Businessweek / May 30, 2013
Foreclosure (HOMFCLOS)-related U.S. home sales fell 22 percent in the first quarter from a year earlier as rising prices reduced the incentive to sell for owners who owe more than their properties are worth, RealtyTrac said.
A total of 190,121 homes in some stage of foreclosure or taken by banks were sold this year through March 31, down 18 percent from the previous three months, the data seller said today. Those deals, including short sales, or transactions in which lenders let homeowners sell for less than what they owe, accounted for 21 percent of first-quarter residential transactions,Read More
Stephen Melman / NAHB / May 22, 2013
Existing home sales increased 0.6% in April from an upwardly revised level in March, and were up 9.7% from the same period a year ago. The National Association of Realtors (NAR) reported that April 2013 total existing home sales were at a seasonally adjusted rate of 4.97 million units combined for single-family homes, townhomes, condominiums and co-ops. That compares to 4.94 million units in March, and 4.53 million units during the same period a year ago. All regions were up from a year ago, ranging from 14.9% in the South to 4.3% in the West. For the current month, the only decrease was 3.4% in theRead More