Boston Realtor Mike Mahoney
Michael Mahoney
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Posts Tagged ‘lawrence yun’

Sales Fall in April Despite Mortgage Rate Drops

May 21st, 2019 by Michael Mahoney

Key Points from National Association of Realtors

  • A sizable drop in mortgage interest rates didn’t do much to help home sales in April, as high prices and tight supply at the low end of the market continued to sideline buyers.
  • Sales of existing U.S. homes fell 0.4% in April compared with March to a seasonally adjusted annualized rate of 5.19 million units, according to the National Association of Realtors. Sales were 4.4% lower compared with April 2018.
  • That was the 14th  straight month of annual declines.

 

One of the major reasons for the sales being down slightly is that buyers are priced out at the bottom of the market.  The inventory is always really short in the first time home buyer territory.

I have been mentoring agents who cannot seem to get their buyers into houses at the lower price points where first time buyers purchase due to the fact that the competition for these homes is very high.

I keep telling the agents they need to call the people who had their houses on the market a few years ago and reference their buyer by name and see if the seller has changed their mind on selling from where they were a couple of years ago.

If you are thinking of selling you cannot overprice your home today. 

“We see that the inventory totals have steadily improved, and will provide more choices for those looking to buy a home,” Yun said, adding that sellers have to realize that price growth has moderated. “When placing their home on the market, home sellers need to be very realistic and aware of the current conditions.” Lawrence Yun – NAR Chief Economist

You can see the full report from Diana Olick  who is the MSNBC real estate correspondent

Looking for a Boston Foreclosure - KW can help

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

Realtor Chief Economist Forecast: No Bubble

November 6th, 2018 by Michael Mahoney

Realtor Chief Economist Forecast: No Bubble

Lawrence Yun - Chief Economist for the National Association of Realtor

The economy remains strong, and housing will continue to see stable growth, Lawrence Yun, chief economist for the National Association of REALTORS®, predicted Friday at the REALTORS® Conference & Expo in Boston.

NAR Chief Economist Lawrence Yun
© REALTOR® Magazine

NAR Chief Economist Lawrence Yun told attendees at the REALTORS® Conference & Expo in Boston that another recession is unlikely in the short-term future because economic fundamentals are healthy.

Yun forecasted about 6 million new- and existing-home sales by the end of 2018 and slightly more than that each year for the next two years. Home prices will also see modest growth—about 4.7 percent this year, 3.1 percent in 2019, and 2.7 percent in 2020.

Yun said he sees no signs of a housing bubble, even though home prices have been outpacing income for many years. That’s because the economy remains fundamentally sound, mortgage quality is high, and with inventory shortages persisting in some markets, there’s none of the overbuilding that characterized the run-up to the Great Recession.

If you want to know what is happening in Boston Real Estate get the latest report here

U.S. Housing Supply and Affordability Are at Odds was the Headline at Realtor.org Today

April 19th, 2018 by Michael Mahoney

U.S. Housing Supply and Affordability Are at Odds was the Headline at Realtor.org Today

Michael Mahoney a Boston Realtor on home affordability by Realtor.orgLawrence Yun, NAR chief economist found a notable imbalance between what potential home buyers can afford and what is listed for sale. “The survey confirms that the lack of entry-level supply is putting affordability pressures on too many buyers – especially those at the lower end of the market, where demand is the strongest. This is why first-time buyers continue to struggle finding affordable properties to buy and are making up less than a third of home sales so far this year,” said Yun.

You can read the full article on Realtor.org here

The bottomline for homeowners here in Greater Boston is that if you have a home that would be of interest to a first time home buyer, you could probably sell it quickly and with very little hassle.  Get the value of your home now

 

 

 

 

 

 

The inventory has been tight for a long time.  Here was a past post low inventory

Existing-Home Sales Fade in December; 2017 Sales Up 1.1 Percent

January 25th, 2018 by Michael Mahoney

Michael Mahoney  a Boston Realtor sells homes in winterWASHINGTON (January 24, 2018) — Existing-home sales subsided in most of the country in December, but 2017 as a whole edged up 1.1 percent and ended up being the best year for sales in 11 years, according to the National Association of Realtors®.

Total existing-home sales1, https://www.nar.realtor/existing-home-sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 1.1 percent in 2017 to a 5.51 million sales pace and surpassed 2016 (5.45 million) as the highest since 2006 (6.48 million).

In December, existing-home sales slipped 3.6 percent to a seasonally adjusted annual rate of 5.57 million from a downwardly revised 5.78 million in November. After last month’s decline, sales are still 1.1 percent above a year ago.

Lawrence Yun, NAR chief economist, says the housing market performed remarkably well for the U.S. economy in 2017, with substantial wealth gains for homeowners and historically low distressed property sales. “Existing sales concluded the year on a softer note, but they were guided higher these last 12 months by a multi-year streak of exceptional job growth, which ignited buyer demand,” said Yun. “At the same time, market conditions were far from perfect. New listings struggled to keep up with what was sold very quickly, and buying became less affordable in a large swath of the country. These two factors ultimately muted what should have been a stronger sales pace.”

The bottom line right now in Boston real estate market is that the inventory is still really low and we could use some of the baby boomers homes to sell in the open market since there are a lot of buyers looking to settle down into those homes and create their American Dream.

Curious What Your Home is Worth

Full Press Release from The National Association of Realtors Here

Pending Home Sales Scale Back 1.3 Percent in April

May 31st, 2017 by Michael Mahoney

National Association of Realtors Pending Home Sales Index

WASHINGTON (May 31, 2017) — Pending home sales in April slumped for the second consecutive month and were down year-over-year nationally and in all four major regions, according to the National Association of Realtors®. Only the West saw an increase in contract signings last month. See what the National Association of Realtors released today.

Here is what Chief National Association Economist Lawrence Yun had to say:

Lawrence Yun, NAR chief economist, says contract activity is fading this spring because significantly weak supply levels are spurring deteriorating affordability conditions. “Much of the country for the second straight month saw a pullback in pending sales as the rate of new listings continues to lag the quicker pace of homes coming off the market,” he said. “Realtors® are indicating that foot traffic is higher than a year ago1, but it’s obviously not translating to more sales.”

Added Yun, “Prospective buyers are feeling the double whammy this spring of inventory that’s down 9.0 percent from a year ago2 and price appreciation that’s much faster than any rise they’ve likely seen in their income.”

Unfortunately, Yun believes there is little evidence these astoundingly low supply levels are going away soon. Home building activity has not picked up enough this year and too few homeowners are listing their home for sale.

It’s my opinion that if you are close to your horizon for current property, then you should consider selling it now…You could walk away with an unbelievable that may not become available for awhile should there be a downturn in the economy in the next few years. Remember what goes up, must come down.  Want to find out how much money is tied up in your property? Check out www.YourEquityFinder.com

The next Existing-Home Sales report for May will be reported June 21, and the next Pending Home Sales Index will be June 28; all release times are 10:00 a.m. ET.

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