New-Home Sales Surge to Post-Recession High

New-Home Sales Surge to Post-Recession High

Sales of new single-family homes climbed 16.6 percent in April, reaching the highest sales pace since January 2008, the Commerce Department reported this week. Newly built, single-family homes rose to a seasonally adjusted annual rate of 619,000 units in April.

“Builders remain optimistic about the housing market, and this month’s jump in new home sales is a positive sign that growing demand will keep the housing sector on an upward trajectory through the spring buying season,” says Ed Brady, chairman of the National Association of Home Builders.

The median sales price of new homes sold in April was $321,100. New-home sales saw the biggest jump last month in the Northeast, where sales of new homes surged 52.8 percent month-over-month. New-home sales jumped 18.8 percent in the West and by 15.8 percent in the South. The Midwest was the only major region to post a decrease in new-home sales in April, with sales falling 4.8 percent compared to the month prior.

Housing analysts expect new home sales to continue to climb in 2016. “Rising home sales combined with tight inventory will translate into increased housing production as we move onward in 2016, especially as job creation continues and mortgage rates remain low,” says NAHB Chief Economist Robert Dietz.

Source: National Association of Home Builders

Staging Tips to Up Your Listing’s Appeal

Staging Tips to Up Your Listing’s Appeal

The house has been cleaned from corner to corner, but now it may just need a few more finishing touches. Here are a few less-obvious, inexpensive ideas for staging your listing:

1. Repaint the walls. Of course painting isn’t anything new when it comes to staging, but focusing on repainting to match the wall and drapery colors can give the illusion of more space, especially if you repaint in a neutral hue. This gives the space an unbroken appearance an can make the decor look more smooth.

2. Re-imagine awkward spaces. An empty spot under the stairs? Stage it with a table to show a small nook for organization. Take advantage of odd, small nooks in the home and turn them into reading corners, a small office space, or use built-in shelves to offer up more organization.

3. Swap out the bathroom towels. Buy deluxe, fluffy towels in white. It’ll help give the restrooms more of a spa treatment.

4. Use mirrors strategically. In a cramped space, hang a mirror so that it reflects the light and gives the feeling of a more spacious area. In a dark room, hang a mirror to lighten up a space too.

Source: “7 Unique Staging Tips to Sell Your Home Fast,” ClarkHoward.com (April 26, 2016)

What Has Home Sellers Spooked?

What Has Home Sellers Spooked?

Inventory continues to be tight in many markets. So what has potential home sellers pulling back when buyer demand is reportedly so high? A recent article at CNBC suggests seller anxiety may be at the root.

“Trade-up buyers seem to be losing their mojo heading into the heart of the spring selling season,” Redfin Chief Economist Nela Richardson told CNBC. “Repeat buyers tend to list early because they are most often also looking for another home to buy in the near future. A slowdown in new listings reflects a lack of confidence on the part of the home owner that they can find a desirable home to purchase.”

The tight supply has, meanwhile, been pushing home prices higher. The median existing-home price for all housing types in April was $232,500, a 6.3 percent increase from a year ago ($218,700), the National Association of REALTORS® reports.

“Low mortgage rates, job growth and other drivers have stoked [buyer] demand, but the supply of homes for sale — especially in the low-to-middle price ranges — hasn’t kept pace, leaving many would-be buyers struggling with a thin and increasingly expensive inventory,” says Andrew LePage, research analyst with CoreLogic.

The tight conditions are causing more competition among buyers for the limited number of homes that are for sale. Nearly 78 percent of offers written by Redfin real estate professionals in Seattle involved a bidding war, the agency reports. In Denver and Portland, the bidding war share rose to 67 and 69 percent respectively.

Source: “Why homesellers Are Pulling Back in This Busy Season,” CNBC (May 19, 2016)

Average Time to Close: 44 Days

Average Time to Close: 44 Days

For the second consecutive month, the average time to close all loans stayed at 44 days, suggesting that new mortgage rules that took effect this fall are having less of an impact on delaying loans, according to Ellie Mae’s latest Origination Insight Report.

Here’s a breakdown of averages from the report:

• The average time to close a purchase remained at 45 days in April.
• The average time to refinance rose to 44 days in April (up from 41 days in March).
• The average time to close FHA loans rose to 45 days (up from 44 days in March).
• The average time to close VA loans stayed steady at 48 days.

The closing rates for all loans dropped to 69 percent in April, retreating from the high of 71 percent in March, according to Ellie Mae’s report. More specifically, purchase closing rates dropped to 73 percent in April, down from 75 percent in March.

Credit scores remain high among applicants. Sixty-eight percent of purchases and 69 percent of refinances had FICO credit scores of 700 or above. Thirty-one percent of purchases had a FICO score between 600 to 699.

Additional highlights from the report:

• The average 30-year rate for all loans dropped from 4.12 in March to 4.10 in April.
• Debt-to-Income remained steady at 25/38 and Loan-to-Value stayed at 80.

Source: Ellie Mae

Real Estate is Trending Younger

Real Estate is Trending Younger

Top Motivations for Selling

Top Motivations for Selling

Inventories of homes are tight nationwide. So what’s going to get home owners to finally sell? In a recent survey, realtor.com® researchers found some of the top motivations to sell:

1. Want to be in a different neighborhood (40%)

2. Need a home with different features (28%)

3. Need a bigger home (22%)

4. Want location with better weather, views, or lifestyle (19%)

5. Need to lower cost of living (17%)

Different motivators are more pressing to various age groups. Realtor.com® research found that households between the ages of 35 and 44 tend to be driven by the desire to be in a different neighborhood and have a bigger home. On the other hand, households of those 65 and older are more motivated by retirement and tend to be looking for a home with different features or trying to improve their weather, views, or lifestyle.

However, “the biggest factors standing in the way of today’s sellers are time, making necessary improvements in their existing home in order to sell, and finding a replacement home to purchase,” says Jonathan Smoke, realtor.com®’s chief economist.

Source: “It’s a Great Time to Sell a Home – and to Buy Again,” realtor.com® (May 18, 2016)