The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury recently released the September edition of the Obama Administration’s Housing Scorecard (www.hud.gov/scorecard), a comprehensive report on the nation’s housing market. The latest housing figures show continued signs of stabilization in house prices. Although existing and new home sales declined in July, recent data shows housing starts rebounded in August.
“Over the last 17 months, the Obama Administration has taken comprehensive action to keep interest rates at record lows, provide incentives to responsible home buyers, and help millions of families stay in their homes,” said HUD Assistant Secretary Raphael Bostic. “But we’re certainly not going to stop fighting to turn things around. That’s why we are focusing on successfully implementing the programs we have put in place, such as additional assistance on refinancing and helping unemployed homeowners stay in their homes, and will continue to monitor the market closely in case more is needed.”
“We’ve been steadily enhancing our programs to help struggling homeowners avoid foreclosure,” said Treasury Assistant Secretary for Financial Stability Herb Allison. “We understand that the foreclosure crisis can be highly localized and some regions have seen severe home price declines and faced severe unemployment. As a result, we have announced more than $4 billion for states hit hardest by this crisis. Our goal is to help build a sustainable, long-term housing recovery. As part of that effort, we have delivered critical support to struggling homeowners while the market continues to heal.”
The September Housing Scorecard features key data on the health of the housing market including:
-Families continued to benefit from the lowest rates in history on 30-year fixed mortgages. Since April 2009, record low rates have helped more than 7.1 million homeowners to refinance, resulting in more stable home prices and $12.7 billion in total borrower savings.
-Existing and new home sales shifted downward in July, though stabilizing housing prices drove improving expectations in some regions. As expected with the expiration of the Home Buyer Tax Credit, new and existing home sales showed a dip in July. At the same time, home prices have leveled off in the past year after 30 straight months of decline and homeowners added $95 billion in home equity in the second quarter.
-More than twice as many modification arrangements have begun compared to foreclosure completions. More than 3.35 million modification arrangements were started between April 2009 and the end of July 2010. These included more than 1.3 million trial Home Affordable Modification Program (HAMP) modification starts, more than 510,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and nearly 1.6 million proprietary modifications under HOPE Now. The number of agreements offered continued to more than double foreclosure completions for the same period (1.24 million).
-More than 468,000 permanent modifications granted to homeowners; more than 33,000 homeowners received a HAMP permanent modification in August. In addition, servicers continue to work aggressively through their backlog of pending modifications, which is expected to decline in coming months. Homeowners in permanent HAMP modifications have a median monthly payment reduction of 36%, or more than $500 per month. Homeowners in permanent modifications saw their median first-lien housing expenses fall from nearly 45% of their monthly household income to 31%.
For more information, visit www.hud.gov.
Friday, September 24, 2010
Friday, September 17, 2010
Springfield, MO Makes Forbe's Top Ten Best Housing Markets for Investors
It has been a tough few years in the housing market, and the Greater Springfield area hasn't been immune. A frequent question on the minds of many is: "When will recovery begin?" The truly astute are wondering: "Where will the housing recovery take hold first?"
A clue to the answer to that question may have come this week, when Forbes.com released its list of the top ten housing markets in America for investors. The Springfield, MO MSA made the list at number nine.
From the story: “To select the best markets for investing, Local Market Monitor (a North Carolina - based real estate research firm) analyzed the 145 Metropolitan Statistical Areas with populations over 400,000 on a variety of factors, including historic population growth, job growth, housing price changes and the mix of jobs in an area, using data through Sept. 1. The investing sweet spot is a market where strong job growth is predicted over the next three years, the population was expanding rapidly before the recession began and home prices are at or near their bottom.”
The story could foretell good news for home builders, buyers and sellers. But it also represents a strong vote of confidence for the near-term strength of the region from an economic development perspective. Consider these excerpts from the story:
“LMM wasn't looking for markets that had come back--this list identified where they think the housing market will come back, with the greatest chance for price appreciation.”
"These are markets that in the past year have had sharp turndowns but we think they have longer-term potential," says Wizner. "Markets with longer-term prospects in general have had above-average population growth between 2000 and 2005."
As encouraging as it is for many that Springfield is a market expected to come back stronger and sooner than most, not every real estate investment here is necessarily a good one. Experts agree that the future holds a very different and dicier investment picture from what became the norm before the downturn. Investors will have to pay more attention than ever to studying precisely where those market opportunities exist here. They will have to be much more sophisticated about investment decisions in the future than most were in the past. That’s why the Home Builders Association of Greater Springfield made the decision last year to invest in bringing and making available locally an unprecedented level of construction market research and forecasting data. As the local market supplier of MarketGraphics research, the HBA brings invaluable insight to its members, lenders, and the broader real estate industry as an important tool for making careful, wise choices, even in the early stages of recovery.
Still, for many, it will be comfort enough to simply know that there ARE wise choices for real estate investment here. Many in local real estate have become accustomed to the view that, as difficult as it has been in the local housing market, they'd rather do what they do here than anywhere else in the country. Now, it appears, Forbes agrees.
Article by: The Home Builders Association of Greater Springfield
A clue to the answer to that question may have come this week, when Forbes.com released its list of the top ten housing markets in America for investors. The Springfield, MO MSA made the list at number nine.
From the story: “To select the best markets for investing, Local Market Monitor (a North Carolina - based real estate research firm) analyzed the 145 Metropolitan Statistical Areas with populations over 400,000 on a variety of factors, including historic population growth, job growth, housing price changes and the mix of jobs in an area, using data through Sept. 1. The investing sweet spot is a market where strong job growth is predicted over the next three years, the population was expanding rapidly before the recession began and home prices are at or near their bottom.”
The story could foretell good news for home builders, buyers and sellers. But it also represents a strong vote of confidence for the near-term strength of the region from an economic development perspective. Consider these excerpts from the story:
“LMM wasn't looking for markets that had come back--this list identified where they think the housing market will come back, with the greatest chance for price appreciation.”
"These are markets that in the past year have had sharp turndowns but we think they have longer-term potential," says Wizner. "Markets with longer-term prospects in general have had above-average population growth between 2000 and 2005."
As encouraging as it is for many that Springfield is a market expected to come back stronger and sooner than most, not every real estate investment here is necessarily a good one. Experts agree that the future holds a very different and dicier investment picture from what became the norm before the downturn. Investors will have to pay more attention than ever to studying precisely where those market opportunities exist here. They will have to be much more sophisticated about investment decisions in the future than most were in the past. That’s why the Home Builders Association of Greater Springfield made the decision last year to invest in bringing and making available locally an unprecedented level of construction market research and forecasting data. As the local market supplier of MarketGraphics research, the HBA brings invaluable insight to its members, lenders, and the broader real estate industry as an important tool for making careful, wise choices, even in the early stages of recovery.
Still, for many, it will be comfort enough to simply know that there ARE wise choices for real estate investment here. Many in local real estate have become accustomed to the view that, as difficult as it has been in the local housing market, they'd rather do what they do here than anywhere else in the country. Now, it appears, Forbes agrees.
Article by: The Home Builders Association of Greater Springfield
Friday, September 10, 2010
FHA Short Refinance Option Now Available
In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today will begin providing an additional refinancing option for underwater borrowers. Originally announced in March, this enhancement of Federal Housing Administration (FHA) refinance program will offer certain ‘underwater’ non-FHA borrowers who are current on their existing mortgage and whose lien holders agree to write off at least 10% of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.
The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth—also known as being ‘underwater’—because their local markets saw large declines in home values. As announced earlier this year, this change as well as other programs that have been put in place will help the Obama Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3-4 million struggling homeowners through the end of 2012.
Participation in FHA’s short refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements. The property must be the homeowner’s primary residence and the borrower’s existing first lien holder must agree to write off at least 10% of their unpaid principal balance. In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75% and a combined loan-to-value ratio no greater than 115%.
To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.
The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth—also known as being ‘underwater’—because their local markets saw large declines in home values. As announced earlier this year, this change as well as other programs that have been put in place will help the Obama Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3-4 million struggling homeowners through the end of 2012.
Participation in FHA’s short refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements. The property must be the homeowner’s primary residence and the borrower’s existing first lien holder must agree to write off at least 10% of their unpaid principal balance. In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75% and a combined loan-to-value ratio no greater than 115%.
To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.
Saturday, September 4, 2010
Smart Design Creates Energy-Efficient Home
The Lake County, Fla., home Paul Fallman shares with his wife and two daughters has 4,000 square feet of living space. Yet his electric bills have averaged just $180 a month so far this year, despite record-low winter temperatures and close-to-record summer highs.
His natural-gas bill for two tankless water heaters and a fireplace averages $25 a month.
“My focus with this house was energy-efficiency,” says Fallman, owner of Fallman Design & Construction in Clermont, Fla. “It’s so easy to do. It’s a great marketing angle. And it’s the right thing to do.”
The key to the energy-efficiency of the lakefront home, which is certified by the Florida Green Building Coalition, is its south-facing orientation, said Fallman, who has made green-building his specialty.
Before starting construction, he commissioned a solar-path study to track the angle of the sun in winter and summer. He used the information to design a home that would be flooded with sunlight during the cooler months, but shaded by porches, balconies and extra-wide roof overhangs when temperatures soar.
“It’s the single thing a builder can do to make a home more efficient without much more expense,” he says.
The three-garage home on the site of the historic Clermont Yacht Club, which was torn down in the early 1950s, is also angled to maximize views across two-mile-wide Lake Minnehaha. Facing the lake on the first floor are the kitchen, dining room, living room and master suite, which either open onto screened porches or are shaded by wide roof overhangs and high-performance windows—tinted, Low-E4 and argon-filled. Upstairs, covered balconies or roof overhangs shade the windows and walls of the three bedrooms and loft area. An apartment above a second garage has similar features.
To receive certification from the green building coalition, a home must be inspected by a green certifier and an energy rater, Fallman says. The green certifier makes as many as 10 checks of the site and home before and during construction, checking for items such as site drainage and properly sealed plumbing pipes, doors and windows. The energy rater conducts a duct-blast test, blower-door test and thermal-envelope test to determine how airtight the home is.
The Fallman home has a Home Energy Rating System (HERS) score of 62 out of 100. The lower the score, the more energy-efficient the home. For a home to be Energy Star-rated, it must score 85 or lower.
At present, about 70% of the payback for building green is improved energy-efficiency, Fallman says. Spending $3,000-$5,000 on equipment upgrades and an additional $2,000-$3,000 on green construction will pay for itself in 5-10 years, he figures.
Certainly, better air-handling equipment cuts down on dust and indoor humidity; better insulation creates a quieter home; drip irrigation in the yard saves water.
The Fallman home, which is on the market for $1.1 million, also features these energy-efficient elements:
-Fifty-year shingle roof with Icynene spray-foam insulation, which keeps cool air in, heat and dampness out; protects against dust and insects; and improves structural strength.
-Concrete-block walls with rigid insulation on the first floor, and 2×6 frame with R-19 batt insulation on the second floor.
-Semi-air conditioned, 200-square-foot attic, which keeps ducts about 30 degrees cooler in the summer so the air-conditioner doesn’t have to work as hard.
-Low-E4 windows with tinted, high-performance glass and wood frames which don’t conduct heat.
-Non-conductive fiberglass doors with insulated glass.
-Dual-compressor 20 SEER (seasonal energy efficiency ratio) air-conditioner and timeable bathroom fans for humidity control.
-Two tankless gas water heaters.
-Gas fireplace with electric ignition.
-Windows at the top of the stairs to vent rising hot air and ceiling fans in many rooms.
-Energy-Star appliances, which use less energy.
-Compact fluorescent lighting.
(c) 2010, The Orlando Sentinel (Fla.).
Distributed by McClatchy-Tribune Information Services.
His natural-gas bill for two tankless water heaters and a fireplace averages $25 a month.
“My focus with this house was energy-efficiency,” says Fallman, owner of Fallman Design & Construction in Clermont, Fla. “It’s so easy to do. It’s a great marketing angle. And it’s the right thing to do.”
The key to the energy-efficiency of the lakefront home, which is certified by the Florida Green Building Coalition, is its south-facing orientation, said Fallman, who has made green-building his specialty.
Before starting construction, he commissioned a solar-path study to track the angle of the sun in winter and summer. He used the information to design a home that would be flooded with sunlight during the cooler months, but shaded by porches, balconies and extra-wide roof overhangs when temperatures soar.
“It’s the single thing a builder can do to make a home more efficient without much more expense,” he says.
The three-garage home on the site of the historic Clermont Yacht Club, which was torn down in the early 1950s, is also angled to maximize views across two-mile-wide Lake Minnehaha. Facing the lake on the first floor are the kitchen, dining room, living room and master suite, which either open onto screened porches or are shaded by wide roof overhangs and high-performance windows—tinted, Low-E4 and argon-filled. Upstairs, covered balconies or roof overhangs shade the windows and walls of the three bedrooms and loft area. An apartment above a second garage has similar features.
To receive certification from the green building coalition, a home must be inspected by a green certifier and an energy rater, Fallman says. The green certifier makes as many as 10 checks of the site and home before and during construction, checking for items such as site drainage and properly sealed plumbing pipes, doors and windows. The energy rater conducts a duct-blast test, blower-door test and thermal-envelope test to determine how airtight the home is.
The Fallman home has a Home Energy Rating System (HERS) score of 62 out of 100. The lower the score, the more energy-efficient the home. For a home to be Energy Star-rated, it must score 85 or lower.
At present, about 70% of the payback for building green is improved energy-efficiency, Fallman says. Spending $3,000-$5,000 on equipment upgrades and an additional $2,000-$3,000 on green construction will pay for itself in 5-10 years, he figures.
Certainly, better air-handling equipment cuts down on dust and indoor humidity; better insulation creates a quieter home; drip irrigation in the yard saves water.
The Fallman home, which is on the market for $1.1 million, also features these energy-efficient elements:
-Fifty-year shingle roof with Icynene spray-foam insulation, which keeps cool air in, heat and dampness out; protects against dust and insects; and improves structural strength.
-Concrete-block walls with rigid insulation on the first floor, and 2×6 frame with R-19 batt insulation on the second floor.
-Semi-air conditioned, 200-square-foot attic, which keeps ducts about 30 degrees cooler in the summer so the air-conditioner doesn’t have to work as hard.
-Low-E4 windows with tinted, high-performance glass and wood frames which don’t conduct heat.
-Non-conductive fiberglass doors with insulated glass.
-Dual-compressor 20 SEER (seasonal energy efficiency ratio) air-conditioner and timeable bathroom fans for humidity control.
-Two tankless gas water heaters.
-Gas fireplace with electric ignition.
-Windows at the top of the stairs to vent rising hot air and ceiling fans in many rooms.
-Energy-Star appliances, which use less energy.
-Compact fluorescent lighting.
(c) 2010, The Orlando Sentinel (Fla.).
Distributed by McClatchy-Tribune Information Services.
Thursday, September 2, 2010
Pending Home Sales Post Surprise Jump in July
Pending sales of previously owned U.S. homes rose unexpectedly in July, an industry group said on Thursday, suggesting a tax credit-related housing market decline was close to bottoming.
The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in July, increased 5.2 percent to 79.4 from June.
June contracts were revised to show a slightly bigger 2.8 percent decline instead of the previously reported 2.6 percent fall.
Compared to the July last year, pending home sales fell 19.1 percent. Economists polled by Reuters forecast the index, which leads existing home sales by a month or two, falling 1.0 percent in July.
Home sales and building activity have dropped sharply following the end in April of a popular tax credit for home buyers.
"Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery," said Lawrence Yun, NAR chief economist.
The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in July, increased 5.2 percent to 79.4 from June.
June contracts were revised to show a slightly bigger 2.8 percent decline instead of the previously reported 2.6 percent fall.
Compared to the July last year, pending home sales fell 19.1 percent. Economists polled by Reuters forecast the index, which leads existing home sales by a month or two, falling 1.0 percent in July.
Home sales and building activity have dropped sharply following the end in April of a popular tax credit for home buyers.
"Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery," said Lawrence Yun, NAR chief economist.
Tuesday, August 17, 2010
Housing Starts Rise 1.7 Percent in July
Nationwide housing starts inched up 1.7 percent to a seasonally adjusted annual rate of 546,000 units in July from a downwardly revised figure in the previous month, according to U.S. Commerce Department figures released today. The gain occurred entirely on the multifamily side, with single-family housing production falling 4.2 percent to 432,000 units.
“Builders are very reluctant to build more homes in view of the current state of the economy and weak buyer demand,” noted Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich.
“Right now the housing market is essentially in a holding pattern,” acknowledged NAHB Chief Economist David Crowe. “As our latest member surveys have indicated, builders are seeing greater hesitancy among potential home buyers who are uncertain about what’s in store for the economy and jobs going forward. That said, favorable home buying conditions including historically low mortgage rates and low house prices should help spur additional demand as the job market gradually improves later this year.”
The entire 1.7 percent gain in housing production this July was due to a 32.6 percent jump on the more volatile multifamily side, which brought that sector back closer to trend at a 114,000-unit rate following a major dip in the previous month. Meanwhile, single-family housing production declined 4.2 percent to a seasonally adjusted annual rate of 432,000 units, its lowest mark since May of 2009.
Two regions registered improved starts activity in July, with the Northeast and Midwest each posting double-digit gains, of 30.5 percent and 10.7 percent, respectively. The South, which is the country’s largest housing market, posted a 6.3 percent decline in starts this July, while the West posted no change in starts activity.
Permit issuance, which can be an indicator of future building activity, declined 3.1 percent to a seasonally adjusted annual rate of 565,000 units in July. Single-family permits fell 1.2 percent to 416,000 units, while multifamily permits fell 8 percent to 149,000 units. Regionally, permits fell nearly 26 percent in the Northeast, 1.1 percent in the Midwest, and 4.9 percent in the West, but gained 3.9 percent in the South in July.
“Builders are very reluctant to build more homes in view of the current state of the economy and weak buyer demand,” noted Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich.
“Right now the housing market is essentially in a holding pattern,” acknowledged NAHB Chief Economist David Crowe. “As our latest member surveys have indicated, builders are seeing greater hesitancy among potential home buyers who are uncertain about what’s in store for the economy and jobs going forward. That said, favorable home buying conditions including historically low mortgage rates and low house prices should help spur additional demand as the job market gradually improves later this year.”
The entire 1.7 percent gain in housing production this July was due to a 32.6 percent jump on the more volatile multifamily side, which brought that sector back closer to trend at a 114,000-unit rate following a major dip in the previous month. Meanwhile, single-family housing production declined 4.2 percent to a seasonally adjusted annual rate of 432,000 units, its lowest mark since May of 2009.
Two regions registered improved starts activity in July, with the Northeast and Midwest each posting double-digit gains, of 30.5 percent and 10.7 percent, respectively. The South, which is the country’s largest housing market, posted a 6.3 percent decline in starts this July, while the West posted no change in starts activity.
Permit issuance, which can be an indicator of future building activity, declined 3.1 percent to a seasonally adjusted annual rate of 565,000 units in July. Single-family permits fell 1.2 percent to 416,000 units, while multifamily permits fell 8 percent to 149,000 units. Regionally, permits fell nearly 26 percent in the Northeast, 1.1 percent in the Midwest, and 4.9 percent in the West, but gained 3.9 percent in the South in July.
Friday, August 13, 2010
Broad Stabilization in Second Quarter Metro Area Home Prices with Strong Sales
The real estate trend in firming home prices solidified in the second quarter with more metropolitan areas showing increases from a year ago, aided by a surge in home sales driven by the home buyer tax credit, according to the latest survey by the National Association of Realtors. In the second quarter, 100 out of 155 metropolitan statistical areas (MSAs) had higher median existing single-family home prices in comparison with the second quarter of 2009, including 14 with double-digit increases; two were unchanged and 53 metros showed price declines. In the first quarter of this year, 91 areas had higher prices, while only 26 MSAs experienced annual price gains in the second quarter of 2009.
The national median existing single-family price was $176,900 in the second quarter, up 1.5% from $174,200 in the same period of 2009. The median is where half sold for more and half sold for less. Distressed homes accounted for 32% of second quarter sales, down from 36% a year ago.
Lawrence Yun, NAR chief economist, said the correction in home prices appears to have ended in 2009. “All year we’ve been seeing relatively flat national home prices, which appear to be supported by market fundamentals,” he said. “Prices in some areas remain below replacement construction costs, so even with an elevated supply of existing homes on the market, we don’t expect any consequential movement in home prices for the foreseeable future. Very low inventory of newly built homes will also help to support home values.”
Yun urged caution on interpreting price data. “The median price is influenced by the mix of homes that were sold and do not reflect pure appreciation or depreciation,” he said. “The recorded home prices in many markets were significantly depressed last year because of a large percentage of distressed homes sold at discount. Now as more normal, non-distressed home sales are occurring, the median price in many areas is showing higher values.”
Total state existing-home sales, including single-family and condo, rose 9.1% to a seasonally adjusted annual rate of 5.61 million in the second quarter from 5.14 million in the first quarter, and were 17.3% above the 4.78 million-unit pace in the second quarter of 2009.
Sales increased from the first quarter in 44 states and the District of Columbia; 47 states and D.C. had increases over year-ago sales levels.
Regionally, the median existing single-family home price in the Northeast declined 3.2% to $238,000 in the second quarter from a year earlier. Existing-home sales in the Northeast jumped 14.9% in the second quarter to a level of 980,000 and are 23.6% above the second quarter of 2009.
In the Midwest, the median existing single-family home price increased 1.4% to $148,500 in the second quarter from the second quarter of last year. Existing-home sales in the Midwest rose 14.5% in the second quarter to a pace of 1.30 million and are 20.9% above the same period in 2009.
In the South, the median existing single-family home price slipped 2.0% to $155,500 in the second quarter from the second quarter of 2009. Existing-home sales in the South increased 10.9% in the second quarter to an annual rate of 2.10 million and are 18.8% above a year ago.
The median existing single-family home price in the West rose 2.6% to $219,700 in the second quarter from a year ago. Existing-home sales in the West fell 2.6% in the second quarter to an annual rate of 1.23 million but are 7.6% higher than the second quarter of 2009.
The national median existing single-family price was $176,900 in the second quarter, up 1.5% from $174,200 in the same period of 2009. The median is where half sold for more and half sold for less. Distressed homes accounted for 32% of second quarter sales, down from 36% a year ago.
Lawrence Yun, NAR chief economist, said the correction in home prices appears to have ended in 2009. “All year we’ve been seeing relatively flat national home prices, which appear to be supported by market fundamentals,” he said. “Prices in some areas remain below replacement construction costs, so even with an elevated supply of existing homes on the market, we don’t expect any consequential movement in home prices for the foreseeable future. Very low inventory of newly built homes will also help to support home values.”
Yun urged caution on interpreting price data. “The median price is influenced by the mix of homes that were sold and do not reflect pure appreciation or depreciation,” he said. “The recorded home prices in many markets were significantly depressed last year because of a large percentage of distressed homes sold at discount. Now as more normal, non-distressed home sales are occurring, the median price in many areas is showing higher values.”
Total state existing-home sales, including single-family and condo, rose 9.1% to a seasonally adjusted annual rate of 5.61 million in the second quarter from 5.14 million in the first quarter, and were 17.3% above the 4.78 million-unit pace in the second quarter of 2009.
Sales increased from the first quarter in 44 states and the District of Columbia; 47 states and D.C. had increases over year-ago sales levels.
Regionally, the median existing single-family home price in the Northeast declined 3.2% to $238,000 in the second quarter from a year earlier. Existing-home sales in the Northeast jumped 14.9% in the second quarter to a level of 980,000 and are 23.6% above the second quarter of 2009.
In the Midwest, the median existing single-family home price increased 1.4% to $148,500 in the second quarter from the second quarter of last year. Existing-home sales in the Midwest rose 14.5% in the second quarter to a pace of 1.30 million and are 20.9% above the same period in 2009.
In the South, the median existing single-family home price slipped 2.0% to $155,500 in the second quarter from the second quarter of 2009. Existing-home sales in the South increased 10.9% in the second quarter to an annual rate of 2.10 million and are 18.8% above a year ago.
The median existing single-family home price in the West rose 2.6% to $219,700 in the second quarter from a year ago. Existing-home sales in the West fell 2.6% in the second quarter to an annual rate of 1.23 million but are 7.6% higher than the second quarter of 2009.
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