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Apr-23-2008Existing Home Sales Drop for Seventh Straight Month(topic overview)
CONTENTS:
- Nationally, the National Association of Realtors reported Tuesday that sales of existing single-family homes and condominiums dropped by 2 percent in March to a seasonally adjusted annual rate of 4.93 million units. (More...)
- WHAT THE FUTURE HOLDS Mike Larson, a real-estate analyst at Weiss Research in South Florida, said tighter lending standards, sales of foreclosed properties and high inventory levels continue to weigh down existing home sales nationwide. (More...)
- Of the homes for sale, 18 percent have negative equity and so are either in foreclosure proceedings or headed for a'short sale' that will see the lender write off some of the original loan amount. (More...)
- Nationally, resales of existing homes fell by 2 percent to a seasonally adjusted rate of 4.93 million from 5.03 million. (More...)
- Everyone wants to say month after month that we don't have enough data yet to show we are in a recession. (More...)
- At the end of March there were 4.06 million homes for sale in the United States. (More...)
- The median price is the halfway point -- with half the homes selling for less than the number and half selling for more. (More...)
- Between 88 percent and 93 percent of all sales are part of the Multiple Listing Service. (More...)
- The high inventory levels remain bad news for homebuilders, which are wrestling with an ongoing supply/demand imbalance in the U.S. housing market. (More...)
- Indian River's condominiums fared better, with Realtors selling 56 units in March, up from 37 a year earlier. (More...)
- When one adds in the growing inventory of homes on the market, that will only increase as foreclosures hit the market, we urge our clients to tread gingerly when approaching the purchase of housing sector assets. (More...)
- In the past, many people were jumping into homes with exotic mortgage products and adjustable rate mortgages that are now starting to reset. (More...)
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Nationally, the National Association of Realtors reported Tuesday that sales of existing single-family homes and condominiums dropped by 2 percent in March to a seasonally adjusted annual rate of 4.93 million units. The median price of a home sold last month in the U.S. was $200,700, a decline of 7.7 percent from a year ago and the seventh consecutive year-over-year price drop. It was also the second biggest decline following a record 8.4 percent drop in February. [1] The National Association of Realtors reported a worse-than-expected 2.0% drop in sales of existing single-family homes and condominiums in March, compared with February, to a seasonally adjusted annual rate of 4.93 million units. That was 19.3% below the year-ago level.[2]
Nationally, existing-home sales -- including single-family, town homes, condominiums and co-ops -- slipped 2 percent to a seasonally adjusted annual rate of 4.93 million units in March, from 5.03 million in February. That's 19.3 percent below the 6.11 million sales pace in March 2007, the National Association of Realtors reported Tuesday.[3]
Nationally, existing home sales -- including single-family, townhomes, condominiums and co-ops -- were down 19 percent from March 2007, as 4.93 million units were sold, the National Association of Realtors said.[4]
A possible explanation? Condominium sales bumped up in March, and the median sales price of a condo was significantly higher than of a single-family home. Why should we care about such parsing? The National Association of Realtors was quick to claim that February's 2.9 percent month-on-month rise in existing home sales was a sign that the housing market was "stabilizing."[5] WASHINGTON (Reuters) - The pace of existing home sales in the United States fell two percent in March to a 4.93 million-unit annual rate, the National Association of Realtors said on Tuesday in a report that showed the U.S. housing market continues to struggle.[6] The National Association of Realtors (NAR) said existing home sales fell to an annual rate of 4.93 million units in March from 5.03 million in February.[7]
The numbers for March, reported by the National Association of Realtors, are not good -- a 2 percent drop in sales compared to February, and 7.7 percent drop in median sales-price compared to March 2007. The numbers are even worse when you consider that the normal seasonal trend at this point in the year, as explained by Barry Ritholtz in The Big Picture this morning, is for sales to increase -- which led him to make a "bold" prediction that the March existing home sales number would rise slightly.[5] "The Kankakee area, including Kankakee and Livingston counties, fared particularly better than other counties in March with sales and prices holding steady," said Wirth, a broker with Re/Max Unlimited Northwest in Crystal Lake. Wirth said there is a lot of pent-up demand for housing in the market at this time. The median price in the city of Chicago increased 5.3 percent to $300,000, compared to last year at this time. "City of Chicago sales in March continue to show an increase in the median price of homes by over 5 percent, year over year, showing great promise for Chicago's homeowners and those interested in getting into the marketplace," said David Hanna, president-elect of the Chicago Association of Realtors.[8] The result is a statistical quirk - at the moment, the median price of a home in the 13-county Twin Cities metro area is $200,000, almost exactly the same as the national median. Earlier this month, the St. Paul Association of Realtors also reported that pending sales of homes were down 14.6 percent from the same period a year ago.[9]
The median price of a home sold last month was $200,700, a decline of 7.7 percent from the median price a year ago. That was the second-biggest year-over-year price decline, following a record 8.4 percent drop in February. It marked the seventh consecutive year-over-year drop in prices, although the March sales price was up slightly from a February median price of $195,600.[10] Compared to a year ago, the median sales price of an existing home dropped sharply, but month-on-month, prices actually rose, from $195,600 in February to $200,700 in March.[5] The median sales price of an existing home dropped year over year by 7.7 percent, to $200,700, NAR said.[11]
The median sales price for single-family homes and condominiums dropped 8.2 percent in February from a year ago, settling at $195,900.[12] In Miami, existing single-family home sales were down 56 percent, to 276 homes from 634 homes in March 2007, as the median sales price fell 12 percent, to $337,900 from $382,600.[4]
In central Ohio, the Ohio Association of Realtors reported that home sales fell 16.4 percent to 1,644 in March compared with March 2007. The dollar value of those transactions fell 23.1 percent to $254.7 million while the average sale price fell 8.1 percent to $154,954.[13] Median prices also declined from last year throughout the region, with St. Charles, Madison and Monroe counties as notable exceptions. In the Midwest, sales fell 15.9 percent from March 2007, while nationally they dropped 19.3 percent, according to the National Association of Realtors.[14]
The median home price was down 15 percent to $205,600. Condo sales slid 24 percent vs. March 2007 to 3,145 units, and their median price dropped 20 percent to $176,600.[15] Compared to February, however, the number of condo sales increased 10 percent and the median price increased 7 percent. Statewide, home sales were down 26 percent from a year ago while the median price of those homes fell 15 percent to $205,600.[16] WASHINGTON -- Sales of existing homes fell in March as a severe slump in housing showed no signs of abating. Nationally, the median price of a home fell, compared with the price a year ago, although both sales volume and the median home price increased in the Northeast region.[10] The median existing home price meanwhile fell 8% from a year ago to $200,700. "Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively higher sales activity in low-cost markets," NAR said in its release.[17] The median sale price of an existing home in Maryland last month was about 284,000, only 6 percent lower than a year ago, which was less than the national drop.[18] The national median price of existing homes fell to 200,700 U.S. dollars, down 7.7 percent from a year ago.[19]
The national median price for existing homes was $200,700, down 7.7 percent from the March 2007 median price of $217,400, the report said.[20] The median price of an existing single-family home reached $205,600 in March, a 15 percent decrease from March 2007's $242,800.[21]
Median price for all types of new homes sold in March was $278,630, a 9 percent decline from a year ago.[1] The median price of an American home sold last month dropped to $200,700, a decline of 7.7% from the median price a year ago. Joseph A. LaVorgna, chief economist at Standard & Poor's said in a note to investors Tuesday that falling home prices aren't such a bad thing, "On one hand they are causing negative wealth effects and forcing some new mortgages underwater; but on the other hand, this is a necessary, albeit unpleasant, prescription for restimulating housing demand," he said.[2] Now Americans have greater risk, less security, negative savings and are unable to meet emergency expenses with cash reserves. It means that the American dream starts to get modified," says Barakat. Bad for sellers, good for buyersLawrence Yun, chief economist for the NAR, says that in many of the "superstar cities," such as New York, Los Angeles, San Francisco and Washington, D.C., real estate has always commanded a significant premium. Even with the recent declines in property values, Yun says that when compared to median incomes, housing values in these cities will likely always be out of whack. While the recent declines still haven't put homes within reach of most residents in these markets, it is a step in favor of buyers. "Some of those high-profile markets are encountering up to a 10 percent price decline. Certainly, it's still not affordable, but at least it is better now than it was a year ago," says Yun.Between the two coasts in Middle America, Yun says homes are much more affordable when compared with median incomes. There, he says, it is less about interest rates and prices and more about jobs. Yun points to markets such as Dallas, Indianapolis and Milwaukee, where most middle-class residents with good credit and decent jobs can afford median home prices.[22]
Sales were down 19.3 percent compared with March 2007. Mark Zandi, chief economist at Moody's Economy.com, said he believed home sales could hit bottom this spring, but he said the fall in prices was only half complete, with further declines needed to work off still large levels of unsold homes. "It will be a long and painful end to the housing downturn because it will take a lot more price cutting to work off all of the inventory that is out there," he said.[23] Realtors chief economist Lawrence Yun said a survey showed 18 percent of homes up for sale in March had negative equity, meaning the mortgage was larger than the value of the home. This percentage, which represented homes that were either in foreclosure or involved in a "short sale" in which the house was being sold for less than the value of the mortgage, was up from levels around 3 percent during the 2002-2006 housing boom. Sen. Charles Schumer, D-N.Y., said the increase in homes with a negative equity underscored the need for Congress to act quickly "to prevent this crisis from getting any worse."[23] The legislation increases the period before a foreclosure can be finalized from 15 to 150 days, enacts new penalties for mortgage fraud and bans mortgage rescue scams. The laws took effect this month. Lawrence Yun, chief economist for the National Association of Realtors, said in a report that he expects existing home sales to rise again ''within a few months, unless there are some additional economic problems or excessive inflationary pressure."[18] On Tuesday the National Association of Realtors cited the slow pace of short sales in reporting a 2 percent drop in sales of previously owned U.S. homes last month as inventories swelled and prices slid. "This has been a frustration of our members," said NAR chief economist Lawrence Yun. "Lenders have been dragging their feet."[24]
Nationwide, the median price of a home sold last month was 200,700, a decline of 7.7 percent from a year ago, the National Association of Realtors reported. That was the second-largest year-over-year price decline since 1999, after a record 8.4 percent drop in February.[25] The median price of local homes sold last month fell to $172,800 from $197,400 a year earlier, according to figures released Tuesday by the Florida Association of Realtors. The declines in both sales volume and prices were from year-earlier levels that were already sharply down from historic highs.[26]
According to the Florida Association of Realtors sales of single family homes in Miami Dade were down 56-percent compared to a year ago. The good news is they were up 13-percent compared to sales in February. In Broward, sales were down 23-percent in March compared to a year ago but they were up 29-percent from February. As far as home prices go, the average price of a single family home in Miami Dade was $337,900 which is a decrease of about 12-percent from this time last year.[27] Orlando Realtors reported last week that March sales in the core Orlando market (mainly Orange and Seminole) were still off almost 40 percent from a year ago, while the median price of $220,000 in the core market was off 8.3 percent from last year's.[3] The median home sale price for the Chicago market was $248,000 last month, up 1.2 percent from March last year.[8] The median sales price of homes in the Tampa-St. Petersburg-Clearwater area was $180,500, an 18 percent decline from $219,800 last March.[28] The median sales price - the point at which half the homes sell for more and half sell for less - also slipped nationally last month, falling 7.7 percent, to $200,700, over last March, according to the NAR.[29] The suburban region logged 5,753 total home sales in March, down 27 percent compared with March 2007. Wirth said McHenry County suffered a 4.3 percent drop in the median sales price, but she cautioned homeowners not to read too much into it.[25] The median sales prices dropped 6 percent from March 2007 to $188,900, but rose 5 percent from February.[16] In Broward, where the median condo price has dropped 30 percent over the last year to $137,000, sales were down just 8 percent compared to March 2007.[15]
Existing condominium and co-op apartment sales rose 3.6 percent for the month but are 25.5 percent below the level a year ago. The median existing price for this segment was 2.8 percent lower than March 2007.[30]
Nationally, sales of existing homes fell 19.3 percent in March, compared to March 2007, from a pace of 6.11 million units last year to 4.93 million units.[9] Existing home sales were down 2.0 percent last month to a seasonally adjusted annual rate of 4.93 million units from a revised pace of 5.03 million in February, but remained 19.3 percent below the 6.11 million-unit level in March 2007.[19] The NAR said sales of existing single-family homes and condominiums dropped by 2 percent in March to a seasonally adjusted annual rate of 4.93 million units.[25] The National Association of Realtors said sales of existing single-family homes and condominiums dropped by 2 percent in March to 4.93 million units.[13] The National Association of Realtors says that seasonally adjusted home sales dropped 2 percent in the month to an annual rate of 4.93 million units.[11] The National Association of Realtors said existing home sales fell 2.0 percent to a 4.93 million-unit annual rate.[31] WASHINGTON, April 22 (UPI) -- The National Association of Realtors said existing home sales dropped 2 percent in March, remaining in a depressed pattern that has existed since September.[20] WASHINGTON, April 22 (Xinhua) -- Sales of existing homes in the United States fell in March, remaining within a narrow range of sales activity that has persisted since last September, the National Association of Realtors (NAR) reported Tuesday.[19] NEW YORK (Associated Press) - On Tuesday, analysts are expecting a decline in March sales of existing homes, as reported by the National Association of Realtors.[32] The National Association of Realtors' report on sales of existing homes in the U.S. for March is scheduled for release at 10 a.m. EDT.[12]
WASHINGTON (Reuters) - The pace of U.S. existing home sales fell in March while inventories swelled and prices slid, a trade group said on Tuesday in a report that showed the U.S. housing market continues to struggle.[31] The housing market continues to trudge along its downward path, as existing home sales fell 2% in March, while inventories rose once again and remain at historically high levels.[17]
Sales of existing homes in the U.S. fell by 2% in March from the month before, as a slump in the country's housing market continues, new data shows.[7]
New number released today show sales of existing homes fell in March, while the median price declined.[33] Nationwide, sales of existing homes fell 2.0% from February to a seasonally adjusted annual rate (SAAR) of 4.930 million. That was, based on SAAR, down 19.3%. It is interesting to note that on a non-seasonally adjusted (NSA) basis, sales were down 22.7% from a year ago. It is my understanding that March was in the same season in 2007 as it was in 2008, so it appears what ever fiddling the NAR is doing with the seasonal adjustment factors is cushioning the apparent severity of the decline. Since this is what the press is using, I will also be using the seasonally adjusted numbers in discussing the regional year-over-year changes -- just keep in mind that they are significantly worse in every region on a NSA basis.[34] Existing home sales nationally were at a seasonally adjusted annual rate of 5.03 million units in February, some 24 percent below the level in February 2007.[18] Sales of existing single-family homes dropped 2.7% to an annual rate of 4.35 million units in March, erasing the entire pickup in sales reported for February.[35]
In the Fort Pierce-Port St. Lucie Metropolitan Statistical Area, which includes Stuart, home sales improved 14 percent in March from a year earlier. The region was the only metro in Florida to see such a gain. The Realtors association said its members in Martin and St. Lucie counties sold 387 existing single-family homes last month, up from the 338 a year earlier.[36] Statewide, 9,142 existing single-family homes changed hands in March, a 26 percent drop from the 12,356 homes sold in March 2007. March sales represented a 10 percent increase over the 8,310 homes sold in February of this year.[21]
In Miami-Dade, existing single-family homes sales in March were down 56 percent vs. a year ago, but up 13 percent compared to February.[15] Nationwide, March single-family home sales fell 18.4 percent to 4.35 million, compared with a year earlier.[37]
In West Palm Beach-Boca Raton, single-family home sales were down 21 percent, as the median price fell 15 percent, to $320,100.[4] DAYTONA BEACH -- The local housing market shuddered again in March as sales of previously occupied, single-family houses plunged 27 percent from a year earlier and the median price took a double-digit tumble, too.[26]
Yale University economist Robert Shiller, who created the widely watched Standard & Poor's/Case-Shiller home price index and is credited with predicting the real estate bubble, said housing prices nationwide are likely to continue falling. Prices have dropped 15 percent since their peak in 2006, he said, and before the slump is over they could fall more than 30 percent. The real estate market hasn't taken such a pummeling since the Great Depression in the 1930s. ''I think there is a scenario that they could be down substantially more,'' Shiller told The Associated Press. The monthly real estate reports measure the number of homes being sold by real estate companies, but they overlook the estimated 12 percent of owners who strike out on their own. Miami property owner Rafael Fortuny is among them. He has spent the last year trying to unload six town homes at 501 SW 25th Ave. After slashing prices by $30,000, he has managed to sell four of them -- the last one in October. Fortuny says he hands out about 5,000 fliers a month hoping to stumble on a buyer willing to put down $270,000 for a three-bedroom, two-bathroom house. ''This last weekend we had maybe 10 families look at the property,'' he said.[15] Robert Shiller, an influential economist at Yale University, on Tuesday said it is likely housing prices nationwide will fall further than the 30 percent drop during the Great Depression. Home prices nationally already have dropped 15 percent since their peak in 2006, he said. Some Realtors here worry this region will also see value declines if the number of homes sold continues to drop. For some, it's a mystery that prices haven't already fallen.[38]
The median price of a home sold last month was $200,700, a decline of 7.7 percent from the median price a year ago. That was the second biggest year-over-year price decline after a record 8.4 percent drop in February.[28] The median home price of a home in Louisville fell to $130,000 last month, a drop of 7.1 percent from a year ago, according to the Greater Louisville Association of Realtors.[39] Prices have fallen even more precipitously in the Twin Cities; Patrick Ruble, government affairs director for the St. Paul Association of Realtors, said the median price of homes in the Twin Cities has dropped nearly 10 percent from a year ago.[9]
In the year 2000, the NAR pegged the index at 129.2, which means the typical family had 129 percent of the income necessary to pay for the typical used house. That figure dropped to 104.9 in June 2007, even though the 2000 median family income of $50,732 rose to $59,157 during the same period. That's because the median price of a home in 2000 was $139,000, but by June 2007 prices peaked at a whopping $229,200. In those seven years, the median price of homes had risen 64.8 percent, while median incomes had only risen 16.6 percent.NAR estimates in January 2008 indicate affordability may finally be moving in the right direction, but it still has a long way to go.[22] The median new-home price has dropped 10.2 percent to $276,292. Existing home closings were down 62.8 percent in March to 980 and their median price dropped 13.9 percent to $247,000.[1] The national median existing home price in March dropped 7.7% from a year earlier, to $200,700.[40] In Lubbock, the median price of an existing home was $101,000 - unchanged from March a year ago.[41]
The median existing single-family home price was 198,200 dollars in March, down 8.3 percent from a year ago.[30] The median price for just single-family homes was down 8.7 percent from a year ago, the biggest decline in four decades.[12]
The median sales price for single-family homes and condominiums dropped 8.2% in February from a year earlier, settling at $195,900.[2] Median sale prices on single-family homes in the Capital Region rose during the first three months of the year, defying expectations and national trends.[38]
During that period, the nation'''s single-family median sale price tumbled 8.3 percent to $198,200, according to statistics also released Tuesday by the National Association of Realtors.[37] Locally, Greater Cincinnati saw the greatest decline in median sale price, with a 4 percent drop to $129,650 in March, according to the Cincinnati Area Board of Realtors.[29] Year-to-date through the end of March, the median sale price in Greater Cincinnati fell 6.8 percent to $123,500.[29]
In the Santa Clarita Valley the median house price fell 19 percent to $470,000 and sales fell 42 percent from a year ago to 151 transactions.[42] The national median house price in the U.S. in March for all property types was $200,700, down 7.7% from a year ago, figures from the National Association of Realtors (NAR) have revealed.[43] The national median existing-home price for all housing types was $200,700 in March, down 7.7 percent from a year ago when it was $217,400.[44]
The median national home price declined 7.7 percent from a year ago to $200,700.[31]
The median price on a condo fell to $130,800 in March 2008, a 20 percent drop from the $163,500 reported in the same month a year ago.[21] The median price of a single family home fell 16 percent to $311,400 compared to March 2007 but was still up 1 percent vs. February.[15] The median price for existing condos was $176,600 in March, down 20 percent from March 2007's $221,200. The Florida Association of Realtors provides programs, services, continuing education, research and legislative representation to its 125,000 members in 67 boards/associations throughout the state.[21] In Miami-Dade, the median condo price dipped 11 percent from March 2007 to $263,900, but sales were down 47 percent for the same period.[15] Miami Dade saw a sales drop of about 47-percent compared to March 2007 with the median price of a condo in the neighborhood of $264-thousand.[27] SalesTraq President Larry Murphy tallies foreclosure sales separately from existing sales. He showed a record 2,468 foreclosure sales in March, nearly five times more than March 2007. Their median price was only $225,165.[1]
In Saratoga County, the median price of $254,300 was 2 percent higher than last year, while the number of closed sales dropped by 25 percent.[38] Compared to February, condo sales were up 42 percent as median prices dropped from $293,300.[15]
Year-to-date through the end of March, home sales were down 17.1 percent and the average price dropped 4.7 percent to $165,281, compared with the same period of 2007.[29] The region's average sale price for a home also dipped in March, dropping 3.3 percent to $164,541.[29]
For single-family homes, March had 501 closed sales with an average price of $212,500, while February reports show 445 sales at an average price of $211,900 and March 2007 had 635 sales at $268,200.[45] Single-family home sales fell 2.7 percent for the month are 18.4 percent below pace in March 2007, the report showed.[30]
The National Association of Realtors reported that nationwide, single-family home sales were down 18.4 percent in March.[46] Total Illinois home sales in March fell 29.5 percent from last year at this time, according to the latest figures by the Illinois Association of Realtors.[8] A report from the Realtors group, which covers a smaller area than the CSUN report, showed home sales totaled 416 in March, up 16 percent from February, but down 46 percent from a year ago. That is the highest sales total since August, when the credit crisis erupted.[42] Sales of new and existing homes in the Richmond area fell 31 percent in the first quarter of 2008 compared with the same period a year ago.[47] Nationally, existing home sales -- including single-family, town homes, condominiums and co-ops -- were down 19 percent from a year ago as 4.93 million units changed hands.[15] Sales of existing homes fell by nearly 13 percent in 2007 to 5.65 million, the biggest decline in 25 years.[12]
In another sign of the troubles for housing, inventory rose 1.0 percent at the end of March percent to 4.06 million existing homes. That represents a 9.9-month supply at the current sales pace, up from a 9.6-month supply in February.[30] In a further hit to the embattled U.S. housing market, sales of existing homes are down 2% in March from February, and remain nearly 20% below the figure of a year ago.[43] Sales of existing homes and condominiums in Florida picked up in March from February. They were still down sharply from a year ago, as the nationwide housing slump continued.[3]
Renay Montague, owner and broker of Re/Max Sundance Realty II, said existing homes and condo sales are down drastically from a year ago and down from February. '''In March of last year, we had 19 closed sales,''' she said. '''In the month of March this year, we had 11 closed sales.''' She too has noticed an increase in the number of people looking at homes for sale.[45]
New residential sales statistics indicate that the housing market is still heading south. Fresh numbers show that nearly 1.2 million fewer homes were sold this March than in the same month a year ago.[9]
The group's members sold 1,042 homes last month, a decline of 19.5 percent compared to last year and the worst sales rate since March 2003.[39] Existing condo sales statewide rose 13.7 percent month-to-month, with 3,145 units sold last month compared with 2,765 condos in February. Condo sales were down 24 percent in March of this year when compared with the 4,153 sold in March 2007.[21] Local existing single family home sales were down another 37 percent in March compared to March 2007, but up 20 percent from February.[16]
Existing home sales dipped by 37 percent to 3,704 in Maryland in March, according to the Maryland Association of Realtors.[18] Orlando-area existing home sales fell by 28 percent last month, while condo sales plummeted by 60 percent, according to the latest report from the Florida Association of Realtors.[21] WASHINGTON -- An industry group's report due Tuesday is expected to show that existing home sales fell slightly in March, a turn for the worse after February's unexpected increase.[12] NEW YORK (CNNMoney.com) -- Sales of existing homes fell in March, after registering a modest increase the month before, according to a report by an industry group released Tuesday.[48]
Yale economist Robert Shiller, who is famous for accurately predicting the dot-com bust, said on Tuesday that housing prices could tumble beyond the 30% decline recorded during the Great Depression. Home prices have fallen 15% since they peaked in 2006. Economists also will be closely studying new home data, which will be released on Thursday by the Commerce Dept. New homes sales are considered a leading indicator because they are recorded when a contract is signed. Prices of new homes could bottom out before those of existing homes because builders are less sentimental about their properties and are willing to slash prices to move inventory.[40] The association said existing home sales have been uneven with the steepest declines in high-cost areas, providing "a downward pull to the national median" price.[30]
A separate government report on national home prices showed home values up about 0.6 percent in February from the prior month but down 2.4 percent from last February. Analysts were unmoved by the data that largely met their low expectations for the listless housing market. "It declined basically in line with what we were looking for -- we think sales still have a couple more months of declines left," said Adam York, an analyst with Wachovia Securities in Charlotte, North Carolina.[31] The report showed a monthly drop of two percent and 19.3-percent plunge year-over-year in existing home sales, the largest segment of the housing market.[30] WASHINGTON (AFP) — Sales of existing U.S. homes slid further in March, an industry group reported Tuesday, in a report underscoring the extended slump in the housing market.[30]
Housing starts and completions for March were also well below a year ago. ''The wider access to affordable credit should increase sales activity notably this summer as pent-up demand begins to be met," Yun said. Business bankruptcy filings in federal courts in Maryland also rose by 14 percent last year to 380 from 2006, but that was lower than the national increase, the Administrative Office of the U.S. Courts reported this week.[18] Prices were down in all other regions of the country, dropping 14.7 percent in the West, 7.1 percent in the South and 5.3 percent in the Midwest. Lawrence Yun, chief economist for the Realtors, said he expected sales would begin to show improvements in the second half of this year, helped by an improved availability of mortgage-backed insurance from the Federal Housing Administration and higher limits for jumbo mortgages, loans that are critically important in high-priced areas of the country, such as California. Shiller, who admitted he has a reputation for being bearish, said real estate cycles typically take years to correct.[10] The median price of a home was down compared with a year ago, and some economists predicted home prices could keep falling for many more months given all the troubles weighing on housing, from a severe credit crunch to a rising tide of foreclosures.[23] As far as the condo market went Broward sales were down only about 8-percent compared to a year ago with the median price around $137-thousand.[27] The median sales prices declined 13 percent to $190,000, compared with the $217,900 posted a year earlier.[26] In Miami, condo sales fell 47 percent, to 333 from 624, as the median sales price fell 11 percent, to $263,900 from $295,100.[4] In West Palm Beach-Boca Raton, sales fell 9 percent, to 592 from 650, as the median sales price fell 30 percent, to $148,600 from $211,800.[4]
Condo sales fell 24 percent across the state while the median price was down 20 percent to $176,600.[16]
Together, the two years of decline made for eye-popping paper losses for local homeowners: The median price of a previously occupied local house was down 23 percent last month from the $225,700 median in March 2006.[26] The monthly average commitment rate for a 30-year, fixed-rate mortgage for the Midwest was 6.01 percent in March, up a slight.02 points from the 5.99 average rate in February, according to the Federal Home Loan Mortgage Corp. Last March it averaged 6.19 percent. "While Illinois median prices are likely to continue to increase over the next three months, the levels forecast will still be about 1 (percent) to 2 percent below those observed in the same months in 2007," said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois.[8] Home values did not necessarily increase or decrease that much across the board. "The median price is between the lowest and highest end that people spend," she said Tuesday. "It's just a snapshot of where we are, and it's still early in the year," Wirth said. Median prices in Illinois likely will continue to increase during the next three months, said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at University of Illinois, though they still will be about 1 percent to 2 percent below a year earlier.[25]
The median price of a U.S. home sold last month dropped 7.7 percent to $200,700.[36] The median price of a home sold during the month fell 7.7% to $200,700 from $217,400 a year earlier.[48]
The median price of a existing single-family home was $198,200 in March vs. $193,600 in February.[35] Measuring the change in the median price of an existing single-family home from the peak to the trough (see table 2) shows that the loss in the median price of an existing single-family from the peak in June 2007 to March 2008 is the largest on record (-13.5%).[35]
On a year-to-year basis, the median price of a single-family existing home has dropped 8.33%, which is close to the 8.85% record decline posted in February 2008.[35] It wasn't too surprising that median prices for U.S. used homes dropped again in March--the seventh straight month of declines, the National Association of Realtors reported on Apr. 22.[40] WASHINGTON (Thomson Financial) - The U.S. housing sector continued to show weakness, as sales of previously owned homes in the U.S. fell again last month after rising slightly in February,the National Association of Realtors (NAR) said today.[49] The National Association of Realtors (NAR) reported that sales by homeowners fell 2% in March to an annual pace of 4.93 million, down from the February reading of 5.03 million.[48] Sales totaled a seasonally adjusted annual rate of 4.93 million in March, compared with 5.03 million in February, the National Association of Realtors said Tuesday.[17] Existing-home sales fell 2% last month to a seasonally adjusted annual rate of 4.93 million, the National Association of Realtors said.[50]
Sales of new single-family houses in February were at a seasonally adjusted annual rate of 590,000, some 30 percent below the level a year earlier, according to federal estimates by the U.S. Census Bureau and the Department of Housing and Urban Development.[18] Don't expect to see a meaningful pickup in sales until prices stop falling. Few buyers are going to leap into a new house if they fear its price will drop. Declining prices are a primary reason why economists at Global Insight don't expect existing-home sales to reach bottom until the third quarter, hitting an annual rate of 4.35 million, a 13% decline from February.[51] Sales are expected to drop 1.6 percent to a seasonally adjusted annual rate of 4.95 million units, down from 5.03 million in February, according to the consensus forecast of Wall Street economists surveyed by Thomson/IFR.[12] The sales figure is 19.3 percent below the annual rate of 6.11 million units a year ago, the report said.[20]
Existing home sales declined to an annually adjusted rate of 4.93 million units from February's annual rate of 5.03 million.[20] Purchases of all existing homes ''' condos and single-family--edged down 2.0% to an annual rate of 4.93 million units.[35]
WHAT THE FUTURE HOLDS Mike Larson, a real-estate analyst at Weiss Research in South Florida, said tighter lending standards, sales of foreclosed properties and high inventory levels continue to weigh down existing home sales nationwide. All of those factors "should keep the pressure on home prices for the balance of this year at least," he said. [3] "We are seeing an increase in the number of buyers out there," Dance said. "But the prices just haven't hit home with them yet." She said that in years past one could expect sales to pick up after a presidential election. "But, this is not a typical year," she added. Sales volume and prices both rose last month from February for both previously occupied houses and condominiums, the Realtors group said.[26] Dahl and others say the number of homes for sale has shrunk as sellers wait for a stronger market, tightening supply as demand falls. Other observers say lower-income buyers are having trouble getting credit in the wake of the subprime mortgage crisis. That means inexpensive homes aren't selling, elevating the median price.[38]
The inventory of unsold homes rose 1 percent in March to 4.06 million homes, representing a 9.9 month supply at the current sales pace, as rising foreclosures dump more homes on the market. For March, sales were down 6.5 percent in the Midwest and 3.5 percent in the South, but they increased by 2.2 percent in both the Northeast and the West. While the Federal Reserve is expected to cut interest rates further at its meeting next week in an effort to jump-start the economy, Yun cautioned that further rate cuts might actually drive mortgage rates higher as financial markets begin to worry more about inflation.[23] Sales at furniture and home improvement stores nationally decreased by 10.2 percent, while revenue at building material, garden equipment and supplies stores declined by 9.6 percent last month from March 2007. Some categories saw increases, such as health and personal care stores sales rising 2.8 percent. Sales are down so far this year at Furniture America in Rockville, but the store is not hurt as much as some others because it recently changed its focus to youth furniture, said David Deignan, general manager. ''Children go from cribs to small beds to larger beds," said Deignan, whose store is in its 22nd year.[18] All told, 2,072 homes were sold last month in Southwest Ohio, Northern Kentucky and Southeast Indiana - a decline of 19.6 percent over March 2007 sales activity.[29] The state as a whole saw a 24.2 percent decline in home sales in March, compared with the same month in 2007 and a 21.5 percent decline in sales during the first quarter.[44] Home sales took another deep dive across the region in March - falling nearly 20 percent compared with the same month in 2007, according to data from local boards of Realtors.[29] The region saw 564 single-family home sale closings last month, compared with 764 in March 2007, according to statistics released Tuesday by the Greater Capital Association of Realtors.[37] As for sales volume, 486 previously occupied single-family homes changed hands in sales that involved at least one real estate agent last month. That compared with a revised 662 sales reported for March 2007, according to the Realtors group.[26]
Since January, real estate agents have sold 691 homes with a total valuation of $87.3 million, compared to 756 homes sold with a valuation of $97.8 million through March 31, 2007. Greg Garrett, president of the Lubbock Association of Realtors, said he remained optimistic about the year. "Our numbers are comparable to what we saw at this time in 2006, and that turned out to be a very good year," he said.[41] The Indian River County Realtors Association's housing report showed that 124 existing single-family homes sold in March, down from 132 during the same period a year earlier.[36] Florida's Realtors sold 9,142 single-family homes in March -- a 26 percent decrease from last year.[15]
In Florida, 9,142 existing single-family homes were sold in March -- up 10 percent from February and down 26 percent from March 2007.[4] A total of 9,142 existing single-family homes in Florida changed hands in March, a 10 percent increase over the previous month when 8,310 homes sold.[45]
The peak in sales of existing single-family homes was in September 2005 (6.34 million units). Sales of existing single-family homes during March fell 31.4% from this peak reading.[35] Sales of existing single-family homes fell 21.8% from a year ago on a seasonally unadjusted basis.[35]
Existing home sales were 1,312 in March, compared to 1,822 in the same period a year ago.[21] New-home sales increased for the third straight month to 1,146 in March, though the first-quarter total of 2,296 is down 44.1 percent from the same period a year ago, Dennis Smith of Home Builders Research reported.[1] In Chicago, there were 2,045 total home sales in March, off 11.5 percent from last year at the same time.[8] Homes sales in Maine continued to fall in March, down 28 percent from a year earlier, according to the Maine Real Estate Information System.[46]
Existing-home sales in Orange, Seminole, Osceola and Lake counties were still down 28 percent from a year earlier, according to figures compiled by the Florida Association of Realtors, but seven other metro areas had sharper downturns -- led by Miami, where home sales plunged 56 percent to 276 units.[3] There were 1,107 sales in March, an 11 percent decline from the same month last year, according to data released Tuesday from the Florida Association of Realtors.[28] Kay Wirth, managing broker of Re/Max Unlimited Northwest in Crystal Lake and president of the 60,000-member association, said sales fell 27.1 percent compared with March 2007. For the year so far, they are down a combined 21.7 percent.[25] Condo sales fell 30 percent, to 71 agent-involved transactions in March compared with 101 in March 2007.[26]
CAPITAL REGION - The housing market in March continued to search for its bottom, as sales in the greater Capital Region fell by 26 percent, even as sale prices posted a small increase.[37] One bright spot is that the median sales price rose 1.1 percent in Kane County, Wirth said, in line with a 1.2 percent increase in the median sales price for the Chicagoland area, which includes nine suburban counties including Kane and McHenry counties.[25] The median sale price for the first three months rose 3 percent to $190,000.[37] The median sales price in March even rose a bit from February's $178,900.[28] The median sales price of $200,700 in March was up from a February median of $195,600. Analysts said this was statistically meaningless because the monthly price changes are not adjusted for seasonal variations and prices always rise in March at the start of the spring sales season.[23]
Nationwide, March was the seventh consecutive year-over-year drop in prices, although the March sales prices were up slightly from a February median price of $195,600.[28]
Locally, the Illinois median price in March was $194,500, off 1.3 percent from last year.[8] The number of condominiums sold decreased 43 percent March over March from 176 to 101 and median condo prices fell 3 percent during the same period to $152,700.[16] While the median home price slipped 12 percent year-over-year, the $337,900 price tag was still 10 percent better than the previous month, a statistical inconsistency possibly related to the small number of homes sold overall.[15]
The study also found that retail salespeople and food preparation workers couldn't afford the rent on a two-bedroom apartment in any of the 210 markets studied. The CHP study based affordability on the metrics that a family or person should not spend more than 30 percent of their household income on rent and utilities while homeowners should not spend more than 28 percent of their income on the mortgage, taxes and insurance.The most recent NAR report projected a January 2008 median home price of $198,700 and median family income of $59,858.[22] During the same period, the median home price dropped 7.7 percent, from $217,400 to $200,700.[9] The median U.S. home price rose to $200,700 last month from a revised $195,600 in February, the Realtors' report said.[50] The median price decreased to $145,000, down slightly from the $150,000. "It is important to put the median home price in proper context," said Maria Fulchini, president of the Realtors Association of Indian River County.[36] The median price fell to $150,000 from $232,000 in March 2007. "I believe we have reached a point where buyers can't afford to sit on the sidelines any longer watching these fantastic deals pass them by," said Dave Derrenbacker, broker-owner of Water Pointe Realty Group in Stuart and president of the Realtor Association of Martin County.[36]
March 2007 had 26 sales at $518,800. '''Personally, we'''ve had two of our listings go under contract and have had two buyers who have purchased and they are all condos,''' said Jan Boeglin, a Realtor with Coldwell Banker in Bonita Springs. '''They are still being sold at very good, lower prices.''' The company does most of its single-family business in the Spanish Wells area. '''It has been steady,''' she said of the sales in that area.[45] The March average sales price was $176,600, compared to $175,600 in February and $221,200 in March 2007.[45]
Sales were down 19.3 percent compared with a year ago, reflecting the depth of the housing bust, which is coming after sales set records for five consecutive years. Compared with February, sales in March were down 6.5 percent in the Midwest and 3.5 percent in the South, but increased 2.2 percent in both the Northeast and the West.[10] The median existing-home price for all housing types was 200,700 dollars in March, down 7.7 percent from a year ago.[30] National median existing-home prices fell 7.7 percent from a year ago, while total housing inventory increased to a nearly 10-month supply. That growing supply figure is particularly troubling.[52]
The market's median existing condo price was $182,500, down 10 percent from a year ago.[36] The median house price was $200,700 in March, down 7.7% from a year ago when the median was $217,400, the NAR said.[7] The median home price plunged almost $100,000 to $225,500 in March during the same period last year.[36]
Pricing is still holding up better than volume of sales, with the price of a median home down 7.7% from a year ago nationwide.[34] While sales were down and active inventory was up from a year ago, median sales prices were fairly stable, said Debbie Hager, a spokeswoman for the Realtors group.[18]
Although sales have dropped here by -21% for '07 and continue to do so now, last month Oahu reported a gain of +42% increase in sales of Single Family Homes over Feb.'08 and the Median Sold Price for 2007 actually increased by +1%.[52] A house on Brookline Avenue was assessed at $319,400 but sold for $399,000, according to the Albany County clerk's office. Government assessors generally base their appraisals on market values and the sale prices of nearby homes.[38] Home prices in the West fell 14.7% to $285,100, which helped spur a 2.2% increase in home sales in that region.[48]
Statewide, homes sales fell 26 percent in the first quarter from the same period a year ago.[47] For the first three months of the year, existing home sales are off 34.4 percent at 4,916.[1] "Basically we're in uncharted territory. It seems we have developed a speculative culture about housing that never existed on a national basis before." While sales of both new and existing homes in Las Vegas trail last year's numbers, they're picking up momentum, a local housing analyst said Tuesday.[1] Maryland's housing slump shows few signs of improving, as home foreclosure filings increased and existing home sales declined last month from a year earlier.[18]
Sales of existing homes fell nearly 13.0% in 2007, to 5.65 million, the biggest decline in 25 years.[2] WASHINGTON -- Sales of existing homes fell in March as a severe slump in housing showed no signs of abating.[53] Home sales decrease 2% in March Boston Globe WASHINGTON - Sales of existing homes fell in March, the seventh drop in eight months, as the spring sales season got off to a rocky start.[54]
Washington, DC (AHN) - While there was a two percent decrease in existing home sales in March, the downtrend was felt more in the upper-end market.[55] Regionally, existing home sales in the Northeast rose 2.2 percent while sales in the West also gained 2.2 percent last month.[19] Single-family homes were up 10 percent from the previous month, and existing condo sales statewide rose 13.7 percent.[3] On a cyclical basis, the drop in sales of existing single-family homes in the current cycle ranks as the third largest (see table 1) and are above the median decline in sales (24.8%) from peak to trough of previous business cycles.[35]
"Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure," said National Association of Realtors Chief Economist Lawrence Yun.[16] The tightening credit market is a national issue, said Lawrence Yun, the chief economist of the National Association of Realtors. ''Though mortgage rates are at historically low levels, some borrowers are facing restrictive lending practices,'' he said in a statement Tuesday. Banks are raising their down-payment requirements and more cautious in lending. ''At the same time, many buyers continue to bide their time with a large number of homes to choose from, while other potential buyers remain on the sidelines,'' Yun said.[15] Lawrence Yun, NAR chief economist, said the problems in the banking sector are also having an effect on the market. "Though mortgage rates are at historically low levels, some borrowers are facing restrictive lending practices in declining markets," he said. "At the same time, many buyers continue to bide their time with a large number of homes to choose from, while other potential buyers remain on the sidelines."[30]
Of the homes for sale, 18 percent have negative equity and so are either in foreclosure proceedings or headed for a'short sale' that will see the lender write off some of the original loan amount. "This has been a frustration of our members," said NAR chief economist Lawrence Yun. "Lenders have been dragging their feet (in approving short sales)." [6]
Economists prefer to compare the prices on a year-over-year basis because, unlike sales, the monthly prices are not adjusted for normal seasonal variations. An influential economist who long predicted the burst of the housing bubble cautioned yesterday the slump in the housing market could cause prices to fall more than they did in the Great Depression, and bailouts will be needed so millions don't lose their homes.[10] "The labor market is weakening, credit markets are very tight and home prices are dropping at an accelerating rate," Global Insight economist Patrick Newport says. "Put those three together, and it doesn't look like a good time for sales to bottom out."[51]
The languid sales pace has pushed inventories of unsold homes to a 9.9 months' supply at current sales rates. That large overhang has put downward pressure on prices for months, especially in areas hit hardest by the housing crisis.[50] Prices have moderated, interest rates are approaching 40-year lows and the number of homes for sale is greater than it has been in 15 years."[36]
U.S. sales of previously owned homes declined in March as the housing-market slump continued, but two gauges of home prices provided a glimmer of hope that the downturn might be easing a bit.[50] South Florida home sales saw a much needed bump in March, but prices and volume were still a far cry from year-ago levels.[15]
McHenry County home sales fell again in March, according to the latest report from the Illinois Association of Realtors.[25] March year-over-year home sales are down across South Florida and the state, but statewide sales did show slight improvement over February, a Florida Association of Realtors report shows.[4]
The good news: Sales of existing homes increased in the Northeast and West last month, according to a National Association of Realtors report released today (although sales declined in the Midwest and South).[52] For the second month in a row, existing home sales increased in Martin County, a separate report from the Realtor Association of Martin County showed Tuesday.[36]
Much for February's "surprising" 2.9 percent month-on-month rise in existing home sales.[5] Sales will eventually benefit from improved affordability, but the near-term picture remains clouded by ongoing job losses and more discriminating lenders." Robert Brusca at FAO Economics said the true picture is hard to determine because some homeowners may be waiting for a recovery to put their properties up for sale. "So the housing mess drags on, but remember that with existing homes it's hard to gauge where we stand since not all these sellers are likely to be committed sellers," he said.[30] Regionally, sales of existing homes rose in Northeast (+2.2%) and West (+2.2%) and fell in the Midwest (-6.5%) and South (-3.5%).[35] Single-family home sales fell 2.7%, while sales of condominiums and co-ops rose 3.6%, for a second consecutive increase.[50]
Sean Snaith, who holds Ph.D. in economics and is director of the Institute for Economic Competitiveness at the University of Central Florida, says affordability evaporated in some areas that saw rapid price increases over the past five years. In many parts of the country, home prices have risen to such levels that many middle-class residents have no choice but to move farther outside the city radius and expand their commutes. He points to Washington, D.C.' s expansion into Virginia and Maryland and Los Angeles' constant expansion inland as prime examples. "If you want that single-family home, swing set and the American dream, the reality is that in major metro areas, most of us will have to commute in order to enjoy that," says Snaith.Celeste Ward, a resident of Martinez, Calif., says she and her husband sold their condo in 2005 when they thought the market was topping out. Now that they have a daughter, they're trying to get into a three-bedroom property but find they can't get back into the market after the price decreases. They have considered moving farther inland but are planning to rent and wait until the market falls even further."[22] Single-family statistics show 32 homes were sold at an average price of $523,800 in March compared to 27 in February at an average of $510,000.[45]
The number of homes available rose and prices declined in March, according to the National Association of Realtors.[45] Tuesday's National Association of Realtors' report on existing-home sales in March will test investor thirst for good news.[51] The National Association of Realtors said the annualized sales pace was 4.93 million, weaker than the 4.95 million expected by Wall Street economists. Sales resumed their decline after a slight uptick in February. This reflects a meltdown in the property market after years of sizzling growth and a speculative bubble.[30] The National Association of Realtors said sales dropped by 2 percent last month.[33] Nationwide, existing-home sales edged down in March, according to the National Association of Realtors.[44]
"During March, home sales remained mired in slow growth activity due to low consumer confidence, tighter financing factors and a weakening economy," said Kay Wirth, president of the Illinois Association of Realtors.[8] While the number of unsold homes continues to rise, the pace of growth in properties listed for sale is slowing -- and has virtually flattened for Broward County's condo market, according to figures released Tuesday by the Florida Association of Realtors.[15]
Link thinks maybe the sales slide has bottomed out, but prices are expected to continue falling for some time as foreclosures continue to batter the market. CSUN's research center report showed that foreclosure activity moderated last month as 511 families lost their homes, down from 550 in February.[42] The big news is the price decline, said Debi Averett, founder of Housingdoom.com blog site. Prices are still falling like a rock, but the drop in home sales isn't as steep as the market shifts from "plummeting" to "stagnating," she said.[1] Yale University economist Robert Shiller, pioneer of the widely watched Standard & Poor's/Case-Shiller home price index, said there's a good chance housing prices will fall further than the 30 percent drop in the historic depression of the 1930s. Home prices nationwide have already dropped 15 percent since their peak in 2006, he said. "I think there is a scenario that they could be down substantially more," Shiller said during a speech in New Haven, Conn.[10] The Dow Jones industrial average fell 104.79 points to close at 12,720.23. Yale economist Robert Shiller, who developed one of the widely followed gauges of home prices, said in a speech Tuesday that home prices, which have already fallen about 15 percent from their peak in 2006, may fall further than the 30 percent drop experienced during the Great Depression of the 1930s, so far the biggest decline in home prices in the country.[23]
Nationally, U.S. home prices rose about 0.6 percent from January to February while prices fell 2.4 percent during the 12-month period ended in February, a federal housing regulator said on Tuesday. The Office of Federal Housing Enterprise Oversight said its index of home prices is down 3.1 percent since a peak in April 2007.[8] Home prices rose about 85 percent from 1997 to 2006, adjusted for inflation, the biggest national housing boom in U.S. history, Shiller said.[10] "Basically we are in uncharted territory," Shiller said, noting that the 85 percent rise in home prices from 1997 to 2006 after adjusting for inflation had represented the biggest housing boom in U.S. history, so the fall in prices could be just as historic.[23]
Purchasing activity has been diminished by the expectation of further price declines, tight credit markets and the snail like pace of banks who are very reluctant to implement higher conforming loan limits as authorized by the Federal government. Taken together, the need of the banks to protect their own capital base and the real probability that the median price of homes will continue to fall for the remainder of the year does put the onus on those that have prematurely called an end to the sli de in the housing sector.[52] Greater Greenville, which includes Greenville, Pickens and Laurens counties, experienced a monthly and quarterly decline in units sold, an increase in the median price and a slight increase in the average number of days on the market, according to Multiple Listing Service statistics. "We're faring better than the state in these categories," said Brad Halter, president of Coldwell Banker Caine. "The number of units is off, but it's not alarming because our homes are appreciating.[44] The statistics also showed a monthly increase in the median price of a house sold in the region of 2 percent to $151,000 and a quarterly increase of 6.1 percent, also to $151,000.[44] The median price here, with half the houses selling for more and half for less, rose 2 percent to $225,000.[47]
The median house price fell an annual 19.4 percent to $500,000 - while foreclosures in the Valley soared nearly 200 percent from 2007.[42]
Prices continued to spiral down. They dropped 29 percent to a median $169,700 from $239,700 in March 2007. That's the lowest figure since March 2004.[36] The median price in Metro Orlando was down 11 percent from March 2007 -- four percentage points less than the statewide decline and the best showing of any major metro area other than Jacksonville, where the median was down 6 percent.[3] Median prices the point at which half of the sale prices are higher and half are lower edged upward from February to March in some of the area's largest counties.[14] In February, there were 414 condo sales, and the median price was $153,100.[28]
In Albany County, for example, the median price of $199,600 in the first quarter was 5 percent higher than last year.[38] The Northeast was the country's only region to experience a rise in median prices, which were up 4.6 percent compared with a year ago.[28] In the first three months of the year, the median price was 132,000 for the area, a drop of 2.2 percent from the first three months in 2007.[39] The median price continued to drop as well, off more than 3 percent, to $187,250.[46]
More troubling, the median home price hit $195,000, down 8.2% from the previous year, the biggest drop on record.[51] Broward's average home price dropped to about $311,400 down about 16-percent from a year ago.[27] In the South the median price was $167,200, down 7.1% from a year ago.[40]
The median price is the point at which half of existing homes are sold for more and half sold for less.[19] Even with homes more affordable, the median price is still out of reach for a median-income family in many markets, according to "Paycheck to Paycheck: Wages and the Cost of Housing in America," a study by the Center for Housing Policy, or CHP, in Washington, D.C.Comparing housing costs in more than 200 metropolitan areas with the wages earned by workers in 60 occupations, the study found that homeownership is unaffor- dable for all of the five-fastest growing occupations -- registered nurses, retail salespeople, customer service representatives, food preparation workers and office clerks.[22]
Three regions across the nation saw a median home price decline, according to NAR data, while the Northeast saw a gain of 4.6 percent.[31] Although it consists of a small sales sample, Montgomery County posted a 32 percent monthly sales decline to 15. It also saw a 50 percent price spike to $129,800. The slump wreaked havoc in Rensselaer and Schoharie counties, which both saw monthly losses in sales and values.[37] There were 107 sales in March in the Bay metro area, a 30 percent decline from the same month last year.[28] Nationally, unadjusted retail sales -- excluding vehicles, gasoline and food at restaurants -- dipped about 1 percent in March from a year ago, according to the National Retail Federation.[18] Nationwide, March sales were down 19.3 percent compared with a year earlier.[36] A combination of recession jitters, high energy costs and bad weather for months have affected the area'''s housing market. Sales so far this year are down 23 percent to 1,531, compared with the same period of 2007.[37]
The NAR cited the 19 percent rise in home sales at Cumberland, Maryland, 18 percent increase in Yakima, Washington and also 18 percent growth in Lansing, Michigan and Sacramento, California. Other areas with substantial hikes in sales were in Amarillo, Texas with an 11 percent improvement and Oklahoma City with 8.2 percent.[55] While Triangle home prices were essentially flat in March, according to the Triangle Multiple Listing Service, Durham County outpaced the area with 1.3 percent yearly growth. Other areas with growth includes Des Moines, Iowa, and Austin, Texas.[11]
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 6.01 percent in March 2008, according to the Federal Home Loan Mortgage Corp. Last year in March it averaged 6.19 percent. Wirth said it was too early draw any conclusion about whether the situation would improve this summer.[25] A benchmark is just that and should be taken with a grain of salt. If a single person spends 27 percent of their income on housing, they might be doing great, but if you're a family with five kids, certainly the amount you're able to comfortably spend without cutting into your budget will vary," says Cohen.Consequences of unaffordable housingRecent mortgage innovations and Americans' appetite for debt has created an illusion that homes are affordable and within reach of any income. Just because someone purchases a house doesn't mean they can afford it, and those that maximize their lending capacity will often have to make other budget cuts that can affect their financial futures.Mo Barakat, a senior financial adviser at Ameriprise Financial in Los Angeles, uses more conservative formulas. He says a person should spend no more than 20 percent of income on mortgage payments, 5 percent on property taxes and insurance and 5 percent on all other debt including car loans, credit cards and student loans. That means a person or family with a $100,000 income should spend no more than $2,083 per month on principal, interest, property taxes and insurance.[22] "We're in a slowdown. there's no question we are in a slowdown." Democrats used the latest weak housing report to argue that Congress must pass legislation being considered this week in a House committee that would authorize the Federal Housing Administration to take on $300 billion in new loans for as many as 1 million distressed homeowners. The legislation is aimed at helping homeowners whose mortgages are now larger than the value of their homes negotiate into lower, more affordable mortgages rather than face the prospect of defaulting on their current mortgage.[23]
The housing inventory in March increased 1%, to 4.06 million homes available for sale. That represented a 9.9-month supply at the current sales pace (up from 9.6 months in February), the report said.[40] The bad news (and the report is mostly bad news) : Existing-home sales fell 2 percent from February to March to remain at about 19 percent below year-ago levels.[52] The March sales decline reported by the Realtors group, which was in line with expectations, followed a 2.9 percent increase in sales in February.[10] In March, 708 houses were sold in Greater Greenville compared with 825 in the same month last year, a decline of 14.2 percent, according to the Realtors association.[44] Only six houses sold in Schoharie County in March, down 67 percent from 18 a year ago.[37]
House sales in most St. Louis area counties continue to nose-dive, falling by as much as 41 percent in one county from March 2007 to March 2008.[14] Condo sales were up 13.6 percent from February and down 24 percent from March 2007, with 3,145 condos sold.[4] In Broward, sales dipped 23 percent compared to March 2007 but rose 29 percent vs. February.[15]
Despite sluggishness in March sales, Albany and Schenectady counties showed strong gains in prices ''' 5 percent and 9 percent, respectively.[37]
33 percent more condos changed hands in March than February as condo prices fell from $139,700.[15] "From March '07 to March '08, we're down almost 9.7 percent," Ruble said of local median housing prices.[9] In St. Charles County, the median house price moved up to $184,000 in March, from $174,500 in February.[14] In Northern Kentucky, the median price remained relatively unchanged in March at $137,000.[29]
In the West, which is strongly influenced by the slumping California market, median home prices fell 14.7% to $285,100.[40] In February, the median home price fell 8.2%, which was the largest year-over-year price drop on record.[48]
Nationally, resales of existing homes fell by 2 percent to a seasonally adjusted rate of 4.93 million from 5.03 million. [45] The inventory of unsold homes rose 1.0 percent at the end of March to 4.06 million units.[19] The state jump was actually the lowest in almost a year, since a 145 percent rise last April, according to RealtyTrac. Nationally, bank repossessions increased in March much faster than auction notices, indicating that more homeowners are walking away from their homes, said James J. Saccacio, CEO of RealtyTrac. This month, Gov. Martin O'Malley (D) signed some emergency bills that supporters hope will help stem the foreclosure tide.[18] Home foreclosures in Montgomery and Frederick counties increased in March by more than 530 percent from a year earlier -- more than the state leap.[18]
Everyone wants to say month after month that we don't have enough data yet to show we are in a recession. Now they are quick to say we are recovering week after week. That fact is it is true that there are still a lot of homeowners out there in trouble not paying mortgages, taxes, HOA fees and more. Or better yet burn them down and let's get the insurance companies dragged into this mess. all joking aside I think we have at least 2 different groups of people living here expressing opinions. 1) people who bought houses many years ago.saw the value shoot thru the roof and have now given back some equity. it stinks but at least you are still ahead 2) people who bought homes here 2005-2007 and now are seeing red as they either lost all their down payment or have a home worth significantly less than what they owe. You can talk all you want about demand, sales increasing etc. but coming from the same newspaper who said LV is gold and immune to the problems of this country it don't mean much to me. [1] "Local buyers have a threefold window of opportunity: an ample supply of homes for sales, attractive home prices and low mortgage rates," Schlosser said.[29] Don't know when but homes will rise in value. RealtorNot wrote on April 23, 2008 09:09 AM : Apparetnly, these housing shills dont read both the Case Shiller Housing Index for Las Vegas nor the UNLV own projections for housing sales. Both point to another 20% downward correction is resale prices for SFR before the historic trend line for appreciation meets prices.[1] Realtors' group says sales by homeowners declined 2%, while home prices tumbled another 7.7%.[48] The large inventory of unsold homes suggests that additional declines in prices should not be surprising. With regard to sales, the fundamentals supporting purchases of homes, such as income and employment, have to improve significantly to bring about a meaningful pickup.[35] Orawin Velz of the Mortgage Bankers Association attributed the general decline in home sales to tight credit. "That's the core of why we haven't seen an increase in home sales.[55] "We know of instances where short sales are taking months to get responses from the selling banks. Are they holding offers while waiting for higher offers? Are they understaffed? Whatever the reason, they need to speed up the process." David Vaughn of Las Vegas said he made an offer for the full amount of $229,900 on a foreclosure home advertised in the Review-Journal by Countrywide Home Mortgage. That was 12 weeks ago. "I called Countrywide," he said.[1] The borrower's credit rating is hurt but for less time than in a foreclosure. Such sales have been touted by banks as a way out for homeowners unable to pay their mortgages. Realtors complain many lenders harm their own interests by refusing to accept bids below internal targets, even though that may eventually force lenders to sell homes in foreclosure, where bids are usually far lower.[24]
"While it remains too early to definitively call a bottom, we continue to argue that home sales will stabilize by midyear," said Stephen Stanley, chief economist at RBS Greenwich Capital, in a note to clients. Existing-home sales dropped 6.5% in the Midwest last month and 3.5% in the South; they rose 2.2% in the West and Northeast.[50] The data show some good signs, depending on what side of the housing market you fall on, said Chris Lafakis, an economist who covers Florida for Moody's Economy.com. "It looks like we're getting closer to a bottom in sales, but prices need to fall farther to move the inventory."[28] Economist Sal Guatieri at BMO Capital Markets agreed. "There is still little evidence of stabilization in U.S. housing markets, though the recent pace of decline in sales has slowed," he said.[30]
Kelsey figures there is pent-up demand, which could help the housing market in coming months. He also offered a caveat: "If there is a further erosion of consumer confidence, a recovery could be pushed back." Yale economist Robert Shiller, whose 2000 book "Irrational Exuberance" correctly forecast a stock market correction, said in a speech Tuesday that U.S. housing prices could fall more than they did during the Great Depression.[14]
LIVONIA, Michigan (Reuters) - Realtors in many U.S. states say lenders are demanding excessively high prices before allowing distressed borrowers to offload their homes in "short sales," making the housing crisis worse.[24] The price jump came despite a dramatic fall in the number of homes sold in the quarter, according to numbers released Tuesday by the Greater Capital Association of Realtors Inc.[38] Some 822 homes sold in March, compared to 687 sold in February and 1,314 in March 2007, according to the Florida Association of Realtors.[16] The association reported 156 single-family homes sold in Martin County last month, up from 132 during March 2007.[36]
In March, the Federal Housing Administration approved new lending guidelines - raising the maximum FHA lending amount for a single-family home to $337,500 from $256,500.[29]
Banks have continued to set aside billions for losses linked to the slumping housing market. Bank of America Corp. said Monday its profit fell 77 percent in the first quarter as the Charlotte, N.C. company set aside $3.3 billion, particularly for anticipated losses on home equity and construction loans.[12] The number of Alt-A borrowers (2.4 million) is two-thirds the size of subprime borrowers. 28 percent of Alt-A homes are not owner-occupied. They're owned by speculators. Compare that to the 9% of subprime homes that are owned by speculators.73 percent of all Alt-A loans were made with no or low documentation. 38.2 percent have cashed out their equity.89.9 percent used 100 percent mortgages with no money down.[1] For the first time since the Great Depression, Americans have a negative savings rate of 4 percent. It's been captured or stolen by high mortgage payments," says Barakat.While new homeowners may be happy to have a home, even if that means they're financially overextending themselves, Barakat says a person's standard of living will actually fall when they buy an unaffordable home. Saving less, putting away less for retirement, cutting back on outings and vacations isn't just decreasing the fun on life, it's increasing financial risk.[22] The average going rate for a 30-year, fixed mortgage in March was 5.92 percent, compared with 6.16 percent a year earlier, according to congressionally chartered mortgage giant Freddie Mac.[37] Sales declined 2.0 pct in March to an annual rate of 4.93 mln units, from the 5.03 mln unit pace in February. That pace is 19.3 pct below the sales pace of a year earlier.[49] Sales were down 2% from the previous month, to a seasonally adjusted annual rate of 4.93 million units.[40] Sales rose to a 5.04 million annual rate, a surprising 2.9% increase from January, the first uptick since July.[51]
At the end of March there were 4.06 million homes for sale in the United States. [15] Home sales were down 19.3% from the 6.11-million-unit pace recorded in March 2007.[50] First the good news: Home sales in the San Fernando Valley increased for the third consecutive month in March, according to reports released Tuesday.[42] At the March sales pace, it would take 9.9 months to eliminate the overhang of unsold homes, up from9.6 months in February.[19]
South Florida's real estate market is still in the double-digit doldrums compared to a year ago -- but analysts said March sales figures, which show the first monthly uptick of the year, offer a glimmer of hope.[15] Real estate agents closed on 299 properties with a total valuation of $37.7 million, compared to 327 sold valued at $43.8 million for the same March period a year earlier, according to Multiple Listing Service - a listing of all properties in a geographical area.[41] The Fort Myers/Cape Coral area saw 234 condos sold in March at an average price of $196,400, up from 181 in February at an average price of $199,200.[45]
The majority of homes in Albany are selling at prices above the reassessed value. A Dartmouth Street house, for example, sold in February for $167,000, while its assessed value was $145,400.[38] Potential sellers remain focused on the sluggish sales pace. Tom and Barbara Niemann put their six-bedroom Frontenac house on the market last September for $800,000. They later reduced the price by $50,000.[14] A short sale is when a homeowner sells a house for less than the purchase price to avoid foreclosure. Such sales are spiking, Jacobs said.[14]
Plunging home prices and slowing sales aren't a good recipe for building products.[2] In January 2008, Realty Trac reported default notices, auction sales notices or bank repossessions on 233,000 homes, 57 percent more homes than in January 2007.[22] UPDATE: Whoops, I misinterpreted Ritholtz's analysis. He was confining himself to predicting that the raw, non-seasonally adjusted numbers of existing home sales would rise, which they did, marginally.[5] Nationally, existing single-family home and condominium sales are down slightly, but Florida'''s market is picking back up.[45] "Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic or inflationary pressure," Yun said.[8]
At the current rate of sales, it would take about 10 months to churn through the existing inventory, the National Association of Realtors said. Fortuny hopes he doesn't have to wait that long to shed his two properties. ''This has been a nightmare,'' he said.[15] We're outperforming the state." "we've got one of the lowest foreclosure rates in the nation," he said. C. Dan Joyner, founder of Prudential C. Dan Joyner, said he expects to see the market pick up by the end of the second quarter, citing Lawrence Yun, chief economist with the National Association of Realtors.[44] National Association of Realtors chief economist Lawrence Yun sounded an optimistic note.[8]
The National Association of Realtors, or NAR, which calculates the index, considers that the typical family makes enough money to buy the typical used home, as long as the family can make a 20-percent down payment.[22]
Nancy Dance, president of the Daytona Beach Area Association of Realtors, said buyers were still waiting, thinking that home prices will go even lower.[26] Durham is among a list of areas showing "healthy price gains" in existing homes amid a nationwide slump, a national organization says.[11] Inventories of all existing homes rose to a 9.9-month supply in March, after a high of 10.5-month supply in October 2007 and a 9.6-month supply in February 2008.[35] Inventories of single-family existing homes moved up to a 9.5-month supply compared with a 9.2-month supply in February and a high of a 10.2-month supply in October 2007.[35]
The median price is the halfway point -- with half the homes selling for less than the number and half selling for more. [38] The median decline of home prices between 1968 and 2001 was 3.9% measured from peak to trough.[35] Home price declines are the single best predictor of mortgage delinquencies and foreclosures.[34] The February rise, which followed six straight monthly declines, had raised hopes the steep housing correction could be hitting bottom. Many private analysts said they do not expect a rebound soon, given the problems weighing on housing, from a severe glut of unsold homes to tighter credit standards for prospective buyers and a rising tide of mortgage foreclosures.[10]
Jacobs has seen the greatest slowdown in the $250,000 to $350,000 price range, which is a traditional second- or third-house market. First-time home buyers also are being more cautious, she said.[14] Although the region bucked the national trend of declining home prices, GCAR officials said buyers hold the cards when it comes to home transactions.[37]
The Cleveland-based maker of Dutch Boy and Krylon paints is due to report second-quarter earnings Tuesday. It warned March 24 that the results wouldn't be pretty. Remodeling, the biggest driver of house-paint demand, has slowed as home prices have cratered, drying up the equity homeowners usually tap for such projects. This activity should stay sluggish as long as credit stays tight.[51] In March last year, before the credit crunch gripped the nation, the market had 7.5 months of inventory. "Given both that the inventory overhang increased a bit and that recessionary job losses could lead to more foreclosures, the outlook is not good at all," said Anirvan Banerji, director of research for the Economic Cycle Research Institute. "It's likely that we'll see many more months of price declines."[40] DataQuick's March foreclosure report suggests the problem will worsen before it gets better. In the Valley, notices of default, the first step in the foreclosure process, have been steadily increasing this year. Last month, 1,553 property owners received default notices indicating that they were seriously behind in their mortgage payments, a 142-percent increase from 642 a year ago.[42] Las Vegas-based SalesTraq reported 1,076 new-home closings in March, a 40.3 percent decline from the same month a year ago.[1] From Glendale to Calabasas during March, 642 properties changed owners, up 17 percent from February but down 52 percent from a year ago, according to the San Fernando Valley Economic Research Center at California State Northridge.[42]
Pending transactions, an indicator of future sales, also were down sharply in March from a year ago.[39]
Total sales were down down 16 percent in the first quarter compared to a year earlier.[39] The results for February were up 2.9 percent from a month earlier in the first sales increase since last July, but were still down nearly 24 percent from a year earlier.[12]
Compare that with February: Sales were down 29 percent and prices were down 14 percent.[28] Condominium sales fell an annual 53 percent to 151 transactions, but increased 38.5 percent from February.[42] Sales in the South, however, fell 3.5 percent and the Midwest saw sales drop 6.5 percent.[19]
Last month foreclosures accounted for 26 percent of sales in the county, the highest level since the late 1990s.[42] "Prices have come down so far that it is not uncommon to see sale prices that mirror 2002 levels. buyers get a do-over and I think the smart ones are realizing that."[36] '''Prices are down, but we'''re making more sales than we did last year. Sellers are meeting buyers more where they want to be met.'''[45]
Every month for more than a year, the news has been the same: Sales of existing houses have fallen.[14] At the existing sales pace, it would take 9.9 months to clear out the supply, up from 9.6 months in February and 7.5 months a year ago.[34]
Sixty-nine existing condos sold in that region last month, down 21 percent from the 87 sold a year ago.[36] Foreclosures rose by 343 percent from a year ago to 4,275, significantly higher than the national rise of 57 percent, according to data company RealtyTrac.[18] Nationally, business bankruptcy filings rose by 44 percent last year to 28,322. That was down from 39,201 in 2005. This report originally appeared in the Business Gazette.[18]
First-quarter statistics show a decline of 13.4 percent to 1,798 units sold, down from 2,077 in the first quarter of last year.[44]
The median is a typical market price in which half the homes sold for more, half sold for less.[8] Overall, the median home price has now tumbled 12.8% since the record high reached in July 2006.[48]
Home prices continue to drop amid a glut of inventory and tight credit and mortgage markets.[32] The majority of homes in Albany are selling at prices above the values set during last year's reassessment.[38] While the fallout of financial illiteracy is going to affect many homeowners, it will also create new opportunities for new generations." Many younger people have told me that they have been priced out of the market and that it was not financially healthy (to buy a house). With these current prices, it is now creating an opportunity for future generations to actually afford a home.[22] "House prices should keep falling until the massive glut of unsold homes is absorbed by rising demand.[30]
Single-family homes were the popular choice out here. What kind of house? Are buyers looking for smaller floor plans to economize on rising heating and lighting costs? And what about amenities? Maria Burrafato is attempting to rent her two-bedroom house in McHenry after an unproductive attempt to sell it for 159,900. "Nobody called us at all," she said. "I don't know if they could not afford it or if there were too many houses.[25] Buyers on the sidelines. That's having a domino affect on house sales, said Tari Jacobs, a broker and owner of Concept Real Estate, based in Columbia, Ill. "Some people that want to move simply can't because they can't sell their house," Marx said.[14] Denny wrote on April 23, 2008 07:27 AM : I have seen so many incredible short sales recently. several, there were almost $300K owed on a property, and the short sale was going for $165,000. That being said, Countrywide sucks. They will foreclose on anything and not even TALK to the homeowner who is trying to save their house. It's unreal.[1]
The statewide average cost for a closed sale was $205,600 in March, up from $198,900 in February.[45] Economists surveyed by Dow Jones forecast that March sales will drop 2% from the previous month.[51] With a +42% increase in sales in March '08 I think it safe to assume the majority are 'well qualified buyers' or cash buyers.[52]
Builders, by cutting back on construction, have managed to reduce the number of new homes for sale, though sales transactions are slowing.[40] The inventory of homes for sale swelled by 40,000 to 4.06 million homes, or a 9.9 months' supply at the current sales pace from 9.6 months in February.[31] The tightening of mortgage underwriting standards is playing a role in holding back sales of homes.[35] Why should you. Helen Weils wrote on April 23, 2008 07:09 AM : Anyone who doesn't believe that this crisis was created entirely by the lenders should read this article. Not responding to short sales offers? Not lending? I'm a Republican-Libertarian but I agree that the Bankruptcy court should be empowered to renegotiate mortgages, just like they do for second homes in bk.[1]
A row of real estate signs advertise homes for sale down a street in Sausalito, Calif., this week.[8]
Much of slowdown in sales and the decline in prices have been seen in coastal areas of the state.[44] You have to have better demand." Resale prices are being dragged down by foreclosures and short sales, he said.[1] Now the bad: Sales and prices remain in a free-fall and foreclosure woes show no signs of easing anytime soon.[42]
Between 88 percent and 93 percent of all sales are part of the Multiple Listing Service. [44] Prices were down in all other regions of the country, dropping by 14.7 percent in the West, 7.1 percent in the South and 5.3 percent in the Midwest. Information from the Associated Press was used in this report.[28]
NEW YORK -- Gas and oil prices moved further into record high territory Tuesday, with retail gas reaching a national average of $3.51 for the first time and crude nearing $120 as the dollar fell to a new low against the euro.[53] At the pump, the national average price of a gallon of regular gas rose 0.8 cent Tuesday to $3.511.[53]
Marco Island had 37 condominiums sell at an average price of $470,000 in March compared to 39 at $410,000 in February.[45]
Lubbock Realtors reported 1,539 homes sitting in city/county inventory, compared to 1,636 for the same year-ago period, a decrease of nearly 6 percent.[41] Analysts say falling home prices and the weakening U.S. dollar are adding up to make South Florida homes and condos attractive to foreign investors.[27] Twenty of the 24 jurisdictions in Maryland saw median prices decline, as only Baltimore City and Kent, Worcester and Garrett counties bucked the trend with increases.[18] The worst hit is the West, where median prices are down 14.7%, followed by a 7.1% decline in the South and a 5.3% decline in the Midwest.[34]
"The price decline followed several years of very strong price appreciation during the housing boom years.[36] The average price for a house is down 7.9% in the South and 7.1% in the Midwest. I would strenuously argue that we still have a long way for housing prices to decline since housing prices are still historically very high relative to both rents and incomes. At best, this process is half over, and that is a very optimistic outlook.[34] The median and average price rose on a monthly basis, but remain deep in negative territory in a Y/Y comparison (-7.7% and -6.6% respectively). OFHEO house prices rose by 0.6% M/M in February, but were down 2.4% Y/Y. It was the first rise in at least 6 months.[56] "House prices are dropping in more places and dropping at an accelerating rate," said Global Insight economist Patrick Newport.[40] NAR Chief Economist Lawrence Yun blamed March'''s slowdown on tighter credit markets, which are preventing some homeowners from taking advantage of historically low mortgage rates.[37] In a news release announcing the new national statistics, the NAR's chief economist, Lawrence Yun, said the housing market is "performing unevenly."[9] Marie-Pierre Ripert, economist at Ixis Corporate and Investment Bank, said the glut of homes on the market "suggests that the downward correction in the housing market is not over."[30]
The Ofheo index tracks homes purchased with government-backed mortgages, which excludes homes purchased with substandard loans more susceptible to the housing market's swoon.[50] Homeowners are becomin renters themselves and some renters can't qualify for home loans because of stricter rules. Other renters are waiting for the housing market to bottom out before buying homes. This material may not be published, broadcast, rewritten, or redistributed.[33]
Many homes are still overpriced and there are so many out there. We're waiting to maybe get a bank-owned property or something where the seller is really desperate," says Ward.Barakat agrees people should buy homes when their "personal economies" are ready, not necessarily when the housing market is ready.[22]
The results come as the area heads into the crucial spring and summer season, typically the busiest time for real estate deals. Officials with the Realtors' group predict that the local housing market won't pick up until the third quarter of this year.[39] The housing market downturn experienced by much of the rest of the nation began showing up in the Greenville area during the first quarter of this year, according to the South Carolina Association of Realtors.[44]
People need to feel good to go out and buy," said Shawn Kelsey, general manager of Kelsey Real Estate Group, based in Chesterfield. "The information they receive on a daily basis is generally negative right now." With the Federal Reserve lowering certain interest rates, and the federal government taking other steps to stabilize the economy, a market turnaround could happen in the second half of this year, said Albert Suguitan, president and chief executive of Greater Gateway Association of Realtors in Glen Carbon.[14] ''Low interest rates make it attractive for buyers," Hager said. ''It's certainly become a buyer's market." The housing slump is dragging down the economy, affecting almost every sector, as many consumers and business executives have become more cautious in their spending, economists say. That's particularly of concern to retailers, said Thomas Saquella, president of the Maryland Retailers Association.[18]
Economists polled by Reuters were expecting home resales to fall to a 4.92 million-unit pace, off from the February rate of 5.03 million that was left unchanged.[6]
We are still below the October peak in terms of months of Supply of 10.5 months, and the July peak in absolute numbers of homes of 4.561 million houses.[34] There are now 4.058 million existing houses on the market, up 1.0% from a month ago and 6.6% from a year ago.[34] Assuming $3,600 per year for insurance and property taxes brings the total monthly payment to $1,273.59 -- barely within the $1,396 maximum threshold, without factoring in any closing costs. Lenders have often used formulas such as this to gauge a person's lending capacity, but property taxes and insurance can vary drastically by region. Cohen says these affordability metrics can also show different stories based on the number of dependents in the house."[22]
An analysis of recent property sales in the city of Albany, where officials last year completed a reassessment of property values, helps show the continued rise in housing costs.[38] Investors looked past some unsettling data in the February report. While sales were up slightly from January, they were still 24% below a year earlier.[51]
The realtor's association noted that sales in the condo market were up 42-percent over February's numbers.[27] We're witnessing a slow, steady increase in activity that seems likely to gain momentum," Jim Link, executive vice president of the Southland Regional Association of Realtors, said of the sales gain.[42] ''We think the market is bumping along, and we are starting to look at our pending sales and our pending sales are up,'' said Richard Barkett, chief executive of the Realtors Association of Greater Fort Lauderdale.[15]
It'''s a mixed bag though in the Fort Myers/Cape Coral area. One Realtor says sales are up over last month, another says they are down. Monetarily speaking, the numbers are down, both Realtors said.[45] "The system is broken," said Ron Rosen, a Realtor in Lighthouse Point, Florida. "The only question banks should ask is can they make more in a short sale than in foreclosure." "The answer is that in nine out of 10 cases they will lose more money in a foreclosure," Rosen aid.[24]
Regionally, sales rose in the Northeast and West but fell in the Midwest and South.[3] Pulte Homes PHM fell 2.5% to $14.22, while Ryland RYL rose 0.8% to $34.18.[17]
METRO ORLANDO 1,312 homes sold in Metro Orlando in March, 1 in 10 of all resales statewide The four-county Metro Orlando market had by far the best showing in Florida in March.[3] Across Maine, 650 homes changed hands during March, down from 908 homes sold in March of 2007.[46]
104 existing condos sold last month, a far cry from the 259 that sold in March 2007.[21]
The high inventory levels remain bad news for homebuilders, which are wrestling with an ongoing supply/demand imbalance in the U.S. housing market. "Inventories continue to plague the housing market on both the new and existing side," said Wachovia economic analyst Adam York in a report to clients. [17] Housing market analysts welcomed the news but said it would be months before it was clear whether the March figures represent the beginning of a turnaround or are simply a seasonal blip.[15]
Indian River's condominiums fared better, with Realtors selling 56 units in March, up from 37 a year earlier. [36] "Inventories had been showing some progress late last year, but seem to have stalled around the four million unit level.[17] In addition to falling sales, inventories rose about 1 pct to 4.06 mln unit, a level that would take about 9.9 months to deplete at the current sales pace.[49]
The total includes 188 high-rise condo units, led by 102 closings at Palms Place at an average price of $668,130.[1] Scott Wingfield, president of the Realtors Association of St. Lucie and general manager of Coldwell Banker Thomas White Realty Inc., called the steep decline in prices a market over-correction.[36] Prices continue to decline,the Florida Association of Realtors reported Tuesday.[36]
The affordable housing segment has been registering gains, according to the National Association of Realtors.[55]
When one adds in the growing inventory of homes on the market, that will only increase as foreclosures hit the market, we urge our clients to tread gingerly when approaching the purchase of housing sector assets. [52] "If you're thinking about buying a home, it should be a long-term investment" and a primary shelter, Evans said. It should not be a short-term effort to make money. Greenville's market remains resilient, he said, because people continue to move into the area. General Electric and Fluor are major drivers in the marketplace, and expansions of their work forces continue to drive housing.[44]
"Remember when things ran up the market and things went nuts? Now we're seeing an overreaction in the other direction with prices," Wingfield said. "No question, it's a bad time for people that want to sell a home, have to sell a home or need to sell a home. For those that buy today, I'll bet the farm that in four, five or six years from now, they will have hit home runs."[36] If measured by average (mean) prices, the story is much the same, down 6.6% nationwide year over year, with the Northeast (+3.1%) actually up while the West (-10.7%) has seen the biggest declines.[34] Sherwin-Williams, already has raised prices. Contractors make up the majority of its customers, and they are more willing than do-it-yourselfers to accept price increases. It could take a full year for the company's profit margins to recover, Goldman analysts estimate.[51] Even with the housing downturn, the drop in prices still just isn't enough for many workers in traditional backbone occupations to afford houses," says Rebecca Cohen, a CHP research associate.In many parts of the country, the housing increases have outpaced wage growth for almost a decade.[22] If the cure for America's housing crisis is a big enough drop in prices to stimulate demand, the market got a big dose of medicine on Tuesday.[2]
City officials said the reassessment for taxation purposes was necessary because housing prices had climbed. It brought complaints from homeowners who said the city made the move at the height of a real estate bubble and therefore overestimated values.[38] The Office of Federal Housing Enterprise Oversight's home-price index showed prices rising a seasonally adjusted 0.6% in February from January, the first monthly gain since June. Both gauges have their limitations.[50]
While the market is still sluggish, analysts said owners are being rewarded for cutting prices. ''We are encouraged to see that our sellers have been adjusting their prices to a level that is attractive to our buyers -- who have been on the sidelines for the last 18 months,'' said Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors. That was especially true in the condominium market.[15] "Sadly, lower prices means more foreclosures and more foreclosures means lower prices," Averett said. "Even this isn't bad news for everyone.[1] For all of 2007, more than 1 percent of all U.S. households faced foreclosure -- almost double the rate of 2006.[22] The Jan 22 issue of "Mortgage Strategist" (put out by USB) estimated that 80 percent of Option ARM borrowers make only the minimum payment. What Dennis left out is this: 37 percent of all Alt-A mortgages are delinquent, but few are over 60 days delinquent.[1] With a 20 percent down payment, a 30-year mortgage at 6.2 percent would mean $973.59 monthly for principal and interest.[22]
One reason for optimism is that 853 escrows were pending at month's end, up 12.4 percent from February but down 4.6 percent from a year ago.[42]
In the past, many people were jumping into homes with exotic mortgage products and adjustable rate mortgages that are now starting to reset. Barakat says that in most cases, people chose adjustable rate mortgages because they couldn't afford the home in the first place. [22] The drop in home values nationwide has pushed many borrowers toward foreclosure and upset lending standards in many markets.[31]
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3. Slumping sales still hit home in March -- OrlandoSentinel.com
4. FAR: South Florida single-family, condo sales down - South Florida Business Journal:
5. Housing market refuses to stabilize - How the World Works - Salon.com
6. U.S. existing home sales fell 2.0 pct in March | Reuters
7. BBC NEWS | Business | US house prices continue to fall
8. Daily Herald | March home sales drop, but prices rise in Chicago
9. Finance and Commerce
10. Home sales, prices keep sliding - NJ.com
11. Durham bucks national housing trend - Triangle Business Journal:
12. Ahead of the Bell: Existing Home Sales | Chron.com - Houston Chronicle
13. The Columbus Dispatch : Existing-home sales slide again
14. STLtoday - Another monthly decline in existing house sales and prices
15. Some hope: S. Florida home sales go up a bit - 04/23/2008 - MiamiHerald.com
16. Home sales fall 37%, median prices down 6% - Jacksonville Business Journal:
17. Existing Home Sales Weak Again | Real Estate | PHM RYL - TheStreet.com
18. State's foreclosures climb again as home sales fall
19. U.S. existing home sales drop 2% in March_English_Xinhua
20. Home sales declined in March - UPI.com
21. March home sales drop 28%; condos down 60% - Orlando Business Journal:
22. IndiaPost.com - Homes still too high for 'average' family
23. The Associated Press: Existing home sales fall in March
24. Realtors complain short-sale process is failing | Special Coverage | Reuters
25. Kane County Chronicle - Local News and Video for Kane County, Illinois - Home sales continue slump
26. Business - newsjournalonline.com
27. cbs4.com - March Home Sales Show Slight Improvement
28. Housing Market Perks Up Slightly
29. The Enquirer - Home-sales slide continues
30. AFP: Monthly sales report shows housing still mired in slump
31. Existing home sales fall 2 percent | Reuters
32. On the Watch: Analysts predict decline in March home sales
33. Realtors Association: Home sales still dropping | NBC12 | Virginia News
34. Zacks.com - Zacks Commentary: Zacks Analyst Interviews
35. Sales of Existing Homes ''' Bottom Lies Ahead?
36. Treasure Coast home sales rise for 2nd month in row, prices fall : Treasure Coast : TCPalm
37. Area's March home sales continued skid
38. Housing market bucks the trend -- Page 1 -- Times Union - Albany NY
39. Louisville home prices, sales down in March | courier-journal | The Courier-Journal
40. Existing Home Sales Drop for Seventh Straight Month
41. Home sales fall in Lubbock, nation | Lubbock Avalanche-Journal
42. Home sales still on shaky ground - Whittier Daily News
43. Mortgage Solutions - House prices in US continue to slide
44. Home sales down in first quarter | GreenvilleOnline.com | The Greenville News
45. Slowly but surely: Real estate market shows small signs of improvement : Lee County : Naples Daily News
46. MaineToday.com | News Update: Home sales drop 28% from March '07
47. Home sales in Richmond area fall 31 percent - News - inRich.com
48. Existing home sales decline 2% in March - Apr. 22, 2008
49. US March existing home sales down 2.0 pct to 4.93 mln vs 4.95 mln seen UPDATE - Forbes.com
50. Home Sales Fall, but Signs of Stability Emerge - WSJ.com
51. Ahead of the Tape - WSJ.com
52. Existing-Home Sales Fall. Again - The Home Front (usnews.com)
53. Nation briefs
54. Home sales decrease 2% in March - The Boston Globe
55. Affordable Housing Market Segment Bucks Trend, Registers Sales Hike | April 23, 2008 | AHN
56. US: Existing Home Sales drop 2% in March
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