Archives: September 2013

Existing Home Sales Show Significant Gains Year-Over-Year

National homes for saleThe National Association of Realtors recently released some data that is sure to be encouraging for anyone thinking about selling a home.

Evidently, existing home sales increased for the second month in a row in May to a level that is significantly higher than last year.

What’s more, median home sales prices saw double-digit year-over-year increases.

All of this suggests that the national housing market is indeed rebounding.

Overview of the Recent Report from the National Association of Realtors

Here are some more highlights from the recent report:

  • Sales of existing homes (which include single-family, town homes, condos and co-ops) increased 4.2 percent to a seasonally adjusted rate of 5.18 million.
  • In April, that figure was 4.97 million.
  • What’s more, sales of existing homes were 12.9 percent higher than the 4.59 million-unit pace that the nation saw in May 2012.
  • Sales of existing homes have reached their highest levels since November 2009.
  • In November 2009,  a lot of buyers were taking advantage of the tax stimulus program. Thus, the market jumped to 5.44 million
  • Existing home sales have shown year-over-year increases for the last 23 months.
  • Meanwhile, the national median price has seen year-over-year increases for the last 15 months.
  • The total housing inventory at the end of May jumped 3.3 percent to 2.22 million existing homes for sale, which represents a 5.1-month supply.
  • A year ago, the total supply of existing homes for sale was 6.5 months.
  • In May, the median home sales price for existing homes was $208,000, up 15.4 percent from May 2012.
  • For the last six months, the median existing home price has seen double-digit increases.
  • Meanwhile, the total number of distressed homes hasn’t changed since April, representing about 18 percent of May sales.
  •  Still, that’s the lowest supply of distressed homes on the market since October 2008.

Analysts say that because of the high demand for homes, buyers across the country can expect a limited supply of available homes for sale for the rest of 2013.

The only likely remedy for the housing shortage is an increase in new home construction by 50 percent, experts say.

Experts also noted that the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased from 3.45 percent to 3.54 percent between April and May.

In May 2012, that rate was 3.8 percent.

National Real Estate Trends that Affect You

The type of housing market environment we’re seeing right now is nearly opposite of what we saw during the housing boom.

Just six years ago, there was plenty of overbuilding going on all across the nation.

Today’s housing market is marked by a great shortage of homes for sale.

Pair that with a lot of pent-up home buyer demand as well as a 29 percent increase in buyer traffic and you have favorable conditions for home sellers across the country.

Real Estate Market Showing Signs of Improvement – New Home Construction is Up

National home constructionMore home builders are committing to projects across the nation, according to a recent Associated Press article.

In May, home builders applied for permits to build single-family homes at the fastest rate in five years.

This is a crucial improvement for the real estate market because it will help increase the available inventory of homes for sale, which has fallen short of the demand for such homes in recent months.

National Real Estate Trends

Here’s what every prospective home buyer and seller should know about the recent trends in home construction:

  • The rate of homes started increased 6.8 percent in May, to a seasonally adjusted annual rate of 914,000.
  • The increase in May helped to offset the 14.8 percent decline in home starts in April.
  • During the month of May, construction increased in the single-family homes sector as well as for apartments and condominiums.
  • The seasonally adjusted annual rate for the number of applications for single-family home building permits increased by 1.3 percent, to 622,000.
  • That figure is the highest it’s been since May 2008.
  • However, when you consider all permits, that figure actually dropped by 3.1 percent, or to a seasonally adjusted rate of 974,000. This was mostly because of the more volatile apartment permit sector.
  • When broken down by specific region, housing starts in the South increased by 17.8 percent in May.
  • Housing starts increased by 5.7 percent in the West.
  • Conversely, housing starts in the Midwest and Northeast actually fell, by 13.7 and 9 percent, respectively.
  • New-home construction has increased 28.6 percent since May 2012.

Experts say that housing is the strongest part of the economy in terms of growth.

They also pointed to an increase in consumer prices as evidence that the housing market is mildly benefiting all sectors of the economy.

For instance, the Labor Department reported that consumer prices increased slightly in May.

The Consumer Price Index increased by a seasonally adjusted 0.1 percent between April and May. Over the last 12 months, prices have increased 1.4 percent.

Your Local Real Estate Experts

Check back here soon for more valuable insight on the current state of the national housing market and how it is affecting other areas of the economy.

You’ll also discover how such trends are likely to affect you as a home buyer or seller.

National Housing Market Becoming Increasingly Balanced

National housing marketThe housing market is on the mend and is not as grossly out of whack as it has been in years past, according to a recent USA Today article.

Evidently, housing markets across the country are reporting that more homes are coming on the market and asking prices are leveling out.

This all means that the housing market is becoming increasingly stable, instead of an extreme buyer’s or seller’s market.

More Trends To Be Aware of on National Housing Market

Here’s an overview of recent real estate activity on the national housing market:

  • Through June 2013, U.S. home values increased by 10 percent, which is the fastest rate it’s been since 1977.
  • Meanwhile, asking prices (which are the top indicator of sales prices) increased to a seasonally adjusted rate of 3.3 percent in May and June.
  • Although this increase is noticeable, it is less than the 4.2 percent jump that happened six months ago.
  • Some of the hottest markets in the country – including Las Vegas, San Francisco and Portland – are reporting that increases in asking prices have slowed even more in recent months.
  • Meanwhile, pending home sales dipped in June, with rising interest rates deterring some buyers.
  • Bidding wars also appear to be leveling off. In July, 63 percent of buyers’ offers on Redfin faced competition in 22 markets. That’s down from 68 percent in June and 76 percent (the peak) in March.
  • Increases in median home values have also slowed. For instance, in Miami, the median home value increased 0.7 percent from April to May, compared with 0.6 percent from May to June.
  • Comparatively, home values have increased at least 1 percent month-over-month during the previous five months.

Experts credit some of the market slowdown to seasonal factors, since a lot of people go on vacation in July.

The fact that there is more inventory on the market may also play a role.

For instance, on a national scale, the for-sale home inventory was down 5.3 percent in July year-over-year. But in January, that inventory was down 16 percent year-over-year.

Moreover, between June and July, the housing inventory increased by 1.4 percent.

This increase in housing inventory is giving home buyers more options when it comes to what kind of home they want.

Experts also contend that the recent slowdown in home price increases is a positive sign. That’s because rapid appreciation encourages house flipping, which causes home prices to skyrocket to unaffordable levels.

If prices keep rising as fast as they have been, it will create a bubble, which is what caused the housing market to crash in the first place.

A slower rising home value environment, on the other hand, will encourage home ownership and lasting investment.

National Housing Market Experts

All of the recent data suggests that home buyers and home sellers are likely to encounter a much more balanced, and less frenzied, housing market.  This is sure to give both groups confidence in the overall health of not only the market, but their home investment.

Check back here soon to see more updates on the state of the national housing market, and what it means for interested home buyers and sellers!

The #1 Reason Why You Should List Your Home Now!

If you’re a current home owner who is wondering whether to enter the market, we’re here to tell you that now is a great time to do so!

Here’s the top reason why home owners should list their home right now: Home prices are on the rise!

NBC News recently reported that home prices have increased 7.7 percent in the year through June.

Home buyers wanting to enter the market before prices climb even higher have only encouraged this upward momentum.

What Else Home Sellers Should Know About the National Market

NBC News revealed even more interesting data about the current state of the national housing market and its submarkets:

  • The Federal Housing Finance Agency reported that June home prices were 17 percent higher than a year earlier in the Pacific area, including California and Washington.
  • In the Mountain region (which includes Nevada and Arizona), home prices increased 11 percent.
  • Meanwhile the Middle Atlantic region (which includes New York, New Jersey and Pennsylvania) saw home prices increase by 2.5 percent.
  • The National Association of Realtors reported that the median price of previously owned homes increased 13.7 percent for the year through July. That figure was $213,500.
  • Sales of previously owned homes increased by 6.5 percent in July to the fastest pace since November 2009.
  • The inventory of homes for sale is around 5.1 months nationally right now.

Experts do caution that higher borrowing costs may end up pricing some buyers out of the market, consequently slowing the pace of home sales.

For instance, mortgage applications for both home purchases and refinancings decreased for a second straight week recently as rates increased, according to the Mortgage Bankers Association.

Still, experts note that home prices are still relatively affordable by historical standards in most local markets, encouraging continued activity.

They added that the continued increase in home sales and home prices will depend heavily on the health of the overall job market. 

National Real Estate Experts

Check back soon for more updates on the current state of the national housing market and how it’s affecting local markets in your community.

Whether you’re a home buyer or home seller, we’re here to provide you with valuable information that will help you navigate the market.

New Albany, Ohio Real Estate Listing of the Week on Yantis Drive

yantis new albanyThere is a magnificent all-brick home that just became available on the New Albany real estate market and it’s sure to attract a lot of attention from home buyers!

Located at 4917 Yantis Drive in New Albany, this home offers prospective home buyers an exceptional location across from New Albany Country Club golf course. It also boasts high quality architectural details and craftsmanship throughout the residence.

If you’re in the market for a Central Ohio home for sale, you may consider checking out this new listing!

Central Ohio Real Estate for Sale

Located in The Crescent, this home sits on 0.426 acres and also features a 3-car garage.

Priced at $860,000, this home is comprised of 5,754 square feet of living space, which includes 5 bedrooms and 5.5 bathrooms.

As soon as one steps inside the home on Yantis Drive, it will be clear just how much care and attention was put into constructing this property.

Buyers will marvel at this Georgian home’s oval-shaped foyer, octagon-shaped monitor skylight, curved walls in the dining room and exposed brick in the great room – not to mention the custom built-ins in the library!

Here are some other features that are sure to catch buyer eyes:

  • Chrome hardware/plumbing fixtures
  • Updated kitchen and light
  • English gardens
  • Paver patio
  • Slate roof
  • Stainless Bosch double ovens in the kitchen
  • Custom chef’s table with stainless top
  • Beautiful white carpet
  • Lovely fireplace
  • Garden tub in master bath

Plus, the current homeowners recently replaced all door, cabinet and bathroom hardware with polished chrome fixtures. They also added two egress windows!

This property is served by the nationally acclaimed New Albany Plain Local School District.

And thanks to its location, this home is just minutes away from such attractions as:

  • Rose Run Park
  • Bevelheymer Park
  • Shopping and dining in Columbus

Your Dedicated New Albany REALTORS®

Yantis New Albany 2If you’re interested in purchasing this lovely home on Yantis Drive, then please contact us, Kate & Tony Thomas, today.

We’ll be happy to assist you by offering you valuable home-buying resources, helping you schedule a showing and answering any questions you may still have.

Until next time,

Kate & Tony