Monday, July 31, 2006

Condo sellers feeling the market change

Supplies are up, prices are down, more units expected to hit the market over the next two years.

From Kiplingers.com: Goodbye Condo Mania

Thursday, July 27, 2006

Wednesday, July 19, 2006

National Association of Realtors expects home sales to stabilize

The National Association of Realtors is forecasting "Existing-home sales are expected to decline 6.7 percent to 6.60 million in 2006 from 7.08 million last year...The national median existing-home price for all housing types is expected to rise 5.3 percent to $231,300 in 2006. With more construction in lower cost regions as well as price incentives that are helping to clear unsold inventory, the median new-home price should increase 1.0 percent this year to $243,300."

Homes sales expected to stabilize

Monday, July 17, 2006

Pending Home Sales Indicate Stabilizing Market

The National Association of Realtors® (NAR) reports that "The index of pending home sales, a leading gauge for the housing sector, rose slightly in May ... up 1.3 percent to a level of 113.4 from an index of 111.9 in April, but was 10.1 percent lower than May 2005."

The Pending Home Sales Index,* based on contracts signed in May, was
To read more: Pending Home Sales

Friday, July 14, 2006

Mortgage Applications UP!

The Mortgage Bankers Association (MBA) reports that for the week ending July 7, "The Market Composite Index, a measure of mortgage loan application volume, was 566.8, an increase of 1.0 percent on a seasonally adjusted basis from 561.0 one week earlier. On an unadjusted basis, the Index decreased 29.1 percent compared with the previous week and was down 36.3 percent compared with the same week one year earlier."

Of the mortgage activity, refinances and adjustable rate mortgage activity were down slightly.

To read more: July 12, 2006 Mortgage Survey

Tuesday, July 11, 2006

Second Home Owner Survey

A survey prepared by the National Association of REALTORS® (NAR) shows some interesting statistics:

* 21% of vacation-home owners report that they own two or more vacation homes. In addition, 34% of vacation-home owners report they own two or more investment properties.
* Minorities account for 11% of vacation home purchases between 2003 and 2005 (note these buyers were 6% of purchases in 2002 or earlier)
* 53% of investment property owners own two or more investment homes and 12% own two or more vacation homes.

For more details of this survey, go here: Vacation home owner survey

Sunday, July 09, 2006

Mortgage Applications Increase

The Mortgage Bankers Association reports that for the week ending June 30, "The Market Composite Index, a measure of mortgage loan application volume, was 561.0, an increase of 5.9 percent on a seasonally adjusted basis from 529.6 one week earlier. On an unadjusted basis, the Index increased 5.9 percent compared with the previous week but was down 33.3 percent compared with the same week one year earlier."

To read more: June 30, 2006 Mortgage Bankers Association report

Friday, July 07, 2006

Mortgage rates down!

Bankrate.com reports that for the first time in a month, "The benchmark 30-year fixed-rate mortgage fell 2 basis points to 6.91 percent...One year ago, the mortgage index was 5.7 percent. Four weeks ago, it was 6.69 percent."

Why? Bankrate.com gives us this explanation:
"Long-term mortgage rates tend to move up and down in the same direction as yields on 10-year Treasury notes because, from an investor's standpoint, they have similar time horizons. After the Federal Reserve's June 29 rate increase, yields on 10-year Treasuries fell the next couple of workdays.

"Why in the world did Treasury yields fall after a Fed rate hike? Investors read the Fed's explanation and interpreted it to mean that the central bank believes that inflation is under control. Low inflation bestows low long-term bond yields. Some investors read the statement wishfully and concluded that the Fed was hinting that it won't raise rates at its next meeting, in August. That helped to push down long-term rates, too."

To read more: July 6, 2006 interest rate report

Wednesday, July 05, 2006

Housing Starts on Target for a strong 2006

The California Building Industry Association reports that "Housing starts continued to inch upwards in May compared to earlier this year, suggesting that production is firming up and that 2006 remains on track to see the fourth-highest number of housing starts in the past 17 years." May building permits increased nearly 4% over April.

More information about new home starts can be found here: California Building Industry Association

Monday, July 03, 2006

May Home Sale statistics released

The National Association of Realtors® (NAR) reports that "Total existing-home sales – including single-family, townhomes, condominiums and co-ops – eased 1.2 percent to a seasonally adjusted annual rate1 of 6.67 million units in May from a pace of 6.75 million in April, and were 6.6 percent below the 7.14 million-unit level in May 2005."

Further stats released are:
* National median existing-home price for all housing types was $230,000 in May, up 6.0% from May 2005 when the median was $217,000.
* Total housing inventory levels rose 5.5% at the end of May to 3.60 million existing homes available for sale, which represents a 6.5-month supply at the current sales pace.
* Existing condominium and cooperative housing sales rose 1.9% to a seasonally adjusted annual rate of 852,000 units in May from a pace of 836,000 in April, but were 6.6% below the 912,000-unit pace in May 2005.
* The median existing condo price was $229,300 in May, up 1.9% from a year earlier.
* Single-family home sales slipped 1.5% to a seasonally adjusted annual rate of 5.82 million in May from 5.91 million in April, and were 6.6% below the 6.23 million-unit level in May 2005.
* The median existing single-family home price was $229,700 in May, up 6.4% from 2005.

To read more, including regional statistics, go here: May 2006 NAR report on home sales

Saturday, July 01, 2006

Mortgage Rates Follow Suit

Bankrate.com reports that for the week ending June 28, "The benchmark 30-year fixed-rate mortgage rose 10 basis points to 6.93 percent ... One year ago, the mortgage index was 5.61 percent; four weeks ago, it was 6.72 percent. The last time the mortgage index was higher was April 18, 2002, when it was 6.96 percent."

To read more: Bankrate.com June 28 mortgage rate survey