Boston Realtor Mike Mahoney
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Posts Tagged ‘existing home sales’

Emerging Buyer’s Market Lifts Home Sales in May

June 24th, 2019 by Michael Mahoney

Emerging Buyer’s Market Lifts Home Sales in May

May Home Sales Up According to National Association of Realtors

For the first time in two months, existing-home sales rose in May as consumers rushed to take advantage of lower mortgage rates and greater inventory. Total existing-home sales—completed transactions including single-family homes, townhomes, condos, and co-ops—jumped 2.5% month over month in May, reaching a seasonally adjusted annual rate of 5.34 million, the National Association of REALTORS® reported Friday. All four major regions of the U.S. saw an increase in sales last month, led by the Northeast.

“The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding,” says NAR Chief Economist Lawrence Yun. However, total sales are still down 1.1% compared to a year ago. Read the full article on Realtor Magazine

 

 

Lawrence Yun NAR Chief Economist on March 2019

April 30th, 2019 by Michael Mahoney

National Association of Realtors Existing Home Sales Report

Click the Image Above to See Full Size

Existing-Home Sales Slide 4.9% in March

The content below is furnished by the National Association of Realtors

Lawrence Yun, NAR’s chief economist, anticipated waning in the numbers for March. “It is not surprising to see a retreat after a powerful surge in sales in the prior month. Still, current sales activity is underperforming in relation to the strength in the jobs markets. The impact of lower mortgage rates has not yet been fully realized.”

The median existing-home price2 for all housing types in March was $259,400, up 3.8% from March 2018 ($249,800). March’s price increase marks the 85th straight month of year-over-year gains.

Total housing inventory3 at the end of March increased to 1.68 million, up from 1.63 million existing homes available for sale in February and a 2.4% increase from 1.64 million a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, up from 3.6 months in February and up from 3.6 months in March 2018.

“Further increases in inventory are highly desirable to keep home prices in check,” says Yun. “The sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth.”

Properties remained on the market for an average of 36 days in March, down from 44 days in February but up from 30 days a year ago. Forty-seven percent of homes sold in March were on the market for less than a month.

Yun says tax policy changes will likely add further complications to the housing sector. “The lower-end market is hot while the upper-end market is not. The expensive home market will experience challenges due to the curtailment of tax deductions of mortgage interest payments and property taxes.”

You can listen to the interview with NAR’s chief economist

NAR - Existing Home Sales Report MARCH 2019

NAR Home Sales March Report Click Here to Play

Existing-Home Sales Slide 4.9% in March

April 23rd, 2019 by Michael Mahoney

Existing-Home Sales Slide 4.9% in March

Existing-home sales fell 4.9 percent in March, with all four major regions of the U.S. seeing a decline, the National Association of REALTORS® reported Monday. The drop follows a surge in sales the previous month. “It is not surprising to see a retreat after a powerful surge in sales in the prior month,” says NAR Chief Economist Lawrence Yun. “Still, current sales activity is under performing in relation to the strength in the job markets. The impact of lower mortgage rates has not yet been fully realized.

 

Total existing-home sales—completed transactions for single-family homes, townhomes, condos, and co-ops—dropped 4.9 percent from February to a seasonally adjusted annual rate of 5.21 million in March. Sales are down 5.4 percent from a year ago, NAR’s data shows.

exiting home sales report march 2019

Yun notes that sluggish housing inventories and tax policy changes may also impact housing. “The lower-end market is hot while the upper-end market is not,” Yun says. “The expensive home market will experience challenges due to the curtailment of tax deductions of mortgage interest payments and property taxes.”

Here’s a closer look at some key indicators from March home sales, according to NAR’s latest housing report.

  • Home prices: The median existing-home price was $259,400 in March, up 3.8 percent from a year ago.
  • Days on the market: Forty-seven percent of homes sold in March were on the market for less than a month. Properties remained on the market an average of 36 days in March, up from 30 days a year ago.
  • Housing inventories: At the end of March, inventories rose to 1.68 million, a 2.4 percent increase from a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace. “Further increases in inventory are highly desirable to keep home prices in check,” says Yun. “The sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth.”
  • Cash sales: Deals in which the buyer paid cash comprised 21 percent of all transactions in March, up from 20 percent a year ago. Individual investors tend to account for the bulk of cash sales. They purchased 18 percent of homes in March, up from 16 percent a year ago.
  • Distressed sales: Foreclosures and short sales represented 3 percent of sales in March, down from 4 percent a year ago. One percent of sales last month were short sales.

Dr. Yun makes a comment above about low mortgage rates. He is absolutely correct about rates. See these two articles below:

Mortgage Rates Rise Again, But Remain Below Yearly Lows

New Mortgage Purchases Highest in 9 Years

Original Article from National Association of Realtors

2018 is Out the Window: Here’s the Recap

January 24th, 2019 by Michael Mahoney

Greater Boston Real Estate Report by Realtor Michael Mahoney - click display images to see the full report

2018 is Out the Window: Here’s the Recap

The Massachusetts Association of Realtors announced the year end closed sales data for 2018.

The MAR released their year end closed data on January 23, 2019 for 2018. Here is a quick summary:

Closed sales for both single-family homes and condominiums dropped year-over-year from last DecemberThere was a small drop in median price for single-family homes and condominiums compared to this time last year and the month also saw the lowest number of single-family homes for sale in the month of December since MAR began reporting the data in 2004.

Year-end data for 2018 shows that total closed sales have had a two percent decrease for both single-family homes and condominiums. The year also saw an increase in average median prices for both single-family homes and condominiums compared to 2017.  Without an increase in inventory in 2019, closed sale decreases and median price increases are trends that will likely continue.

“Whether it was December or all of 2018, the phrase that best describes this real estate market, was ‘lack of homes for sale’,” said 2019 MAR President Anne Meczywor, broker/associate at Roberts & Associates Realty Inc. in Lenox. “It’s not too much of a stretch to imagine we’ll be using the same phrase to describe 2019 if we can’t do something to increase production and encourage more homeowners who are on the fence about selling to put their homes on the market.” Massachusetts Association of Realtors President, Anne Meczywor

In the report, the MAR president said the following about mortgage interest rates.

“Interest rates are a wild card. If they rise, it could make homes less affordable and cut demand for the upper-end but may fuel increased demand in the more affordable range, which is already facing short supply.” said Meczywor.

In all of my previous blog posts, all indicators show that interest rates will remain low. The did spike up at the end of 2018 and were blamed for some of the sales. You can read the blog post titled “Existing-Home Sales Plunge 6.4%, Mortgage Rates Blamed” here

Regarding rates and the market, Fannie Mae indicates that there will probably only be one interest rate increases in 2019. Here is the article titled “Fannie Mae: Housing market will stabilize in 2019

 

 

National Association of Realtors – Existing Home Sales Slip 2.3%

May 30th, 2017 by Michael Mahoney

Home Sales Fall According to NAR

National Association of Realtors – Existing Home Sales Slip 2.3%

WASHINGTON (May 24, 2017) — Stubbornly low supply levels held down existing-home sales in April and also pushed the median number of days a home was on the market to a new low of 29 days, according to the National Association of Realtors®.

“Realtors® continue to voice the frustration their clients are experiencing because of the insufficient number of homes for sale,” added Yun. “Homes in the lower- and mid-market price range are hard to find in most markets, and when one is listed for sale, interest is immediate and multiple offers are nudging the eventual sales prices higher.” See the available inventory here in Norfolk and Suffolk County

In Boston, the shortage of homes has had an impact as well. As you will see the chart below, the inventory is down but also that absorption rate is up which leads to less available inventory for consumers looking to purchase. If you are considering a move, now would be a great time. Get the value of your home now.

 

Regional Breakdown of the Northeast

April existing-home sales in the Northeast dipped 2.7 percent to an annual rate of 730,000, and are now 2.7 percent below a year ago. The median price in the Northeast was $267,700, which is 1.6 percent above April 2016.
Properties typically stayed on the market for 29 days in April, which is down from 34 days in March and 39 days a year ago, and surpasses last May (32 days) as the shortest time frame since NAR began tracking in May 2011. Short sales were on the market the longest at a median of 88 days in April, while foreclosures sold in 46 days and non-distressed homes took 28 days. Fifty-two percent of homes sold in April were on the market for less than a month (a new high). Read the whole article from The National Association of Realtors here.

Video by The National Association of Realtors

NOTE: NAR’s Pending Home Sales Index for April is scheduled for release on May 31, and Existing-Home Sales for May will be released June 21; release times are 10:00 a.m. ET. You can access these reports when released at www.Realtor.org

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