Pending home sales jump 6.4 percent
Seventh straight month of gains is highest since March 2007


updated 12:39 p.m. ET, Thurs., Oct . 1, 2009

WASHINGTON - Aspiring homebuyers rushed to take advantage of a tax credit for first-time owners that expires in November, driving up the number of signed sales contracts for the seventh straight month in August.

Construction spending also rose unexpectedly in August on the biggest jump in housing activity in nearly 16 years, another sign the real estate market is recovering from its four-year slump, data Thursday showed.

Sales and homebuilding are being fueled by a tax-credit of up to $8,000, low mortgage rates and cheap foreclosures. In some of the most hard-hit areas, like Phoenix and Las Vegas, there are bidding wars for deeply discounted properties. And in all but a few cities, home prices are slowly starting to rise, reversing their three-year descent.

To make sure first-time buyers can complete their purchases by the Nov. 30 deadline, real estate agents "have been pushing buyers to sign a contract at least a couple months in advance" according to Abiel Reinhart, an economist with JPMorgan Chase.

More than a dozen bills have been introduced in Congress to extend the credit, but it's unclear if lawmakers want to continue to subsidize the market.

The National Association of Realtors said Thursday its index of sales agreements rose 6.4 percent from July to 103.8, beating forecasts. It was the highest since March 2007 and 12 percent above a year ago. Economists surveyed by Thomson Reuters expected the index would rise to 98.6.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer of future sales. However, new rules for home appraisals and rigid lending standards have scuttled many sales agreements recently. In addition, the index may also double-count some buyers who agree to purchase other homes after the first deal falls through.

These factors have made the index a less reliable gauge for completed sales. Despite a steady increase in the number of signed contracts this summer, for example, completed sales actually took an unexpected 2.7 percent dip in August.

"Perhaps the real question is how many transactions are being delayed in the pipeline, and how many are being canceled," Lawrence Yun, the Realtors' chief economist, said in a statement. "Without historic precedents, it's challenging to assess."

Pending sales were up 16 percent in the West and 8 percent in the Northeast. They were up 3 percent in the Midwest and nearly 1 percent in the South.

Home prices, meanwhile rose 1.2 percent from June to July, according to the Standard & Poor's/Case-Shiller home price index of 20 major cities. On a seasonally adjusted basis, prices rose in all but three metro areas, Las Vegas, Detroit, and Seattle.

Housing experts, however, remain divided on whether the price gains signal a definite bottom to the worst housing downturn in decades or just a brief respite from plummeting prices.

SOURCE: ASSOCIATED PRESS






http://www.msnbc.msn.com/id/33116385/ns/business-real_estate/

Labels: real estate, real estate sales trends

Strong Gain in Existing-Home Sales Maintains Uptrend
Washington, August 21, 2009

For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted annual rate1 of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.99 million-unit pace in July 2008. The last time sales rose for four consecutive months was in June 2004, and the last time sales were higher than a year earlier was November 2005.

Lawrence Yun, NAR chief economist, said he is encouraged. “The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales,” he said.

The monthly sales gain was the largest on record for the total existing-home sales series dating back to 1999.

“Because price-to-income ratios have fallen below historical trends, there are more all-cash offers. In some recovering markets like San Diego, Las Vegas, Phoenix, and Orlando, the demand for foreclosed and lower priced homes has spiked, and a lack of inventory is becoming a common complaint,” Yun said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.22 percent in July from 5.42 percent in June; the rate was 6.43 percent in July 2008.

An NAR practitioner survey showed first-time buyers purchased 30 percent of homes in July, and that distressed homes accounted for 31 percent of transactions.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said the first-time buyer tax credit is working. “In addition to first-time buyers, we’re also seeing increased activity by repeat buyers. While many entry-level buyers are focused on the discounted prices of distressed homes, they’re also freeing some existing owners to sell and make a move,” he said.

“Realtors® are the best resource for consumers in these changing market conditions because the transaction process has become more complex. Since it’s now taking longer to complete a home sale, first-time buyers who want to take advantage of the $8,000 tax credit should try to make contract offers by the end of September,” McMillan said. “Otherwise, they may miss the November 30 closing deadline.”

Total housing inventory at the end of July rose 7.3 percent to 4.09 million existing homes available for sale, which represents a 9.4-month supply2 at the current sales pace, which was unchanged from June because of the strong sales gain. Raw inventory totals are 10.6 percent lower than a year ago when the number of unsold homes was at a record.

The national median existing-home price3 for all housing types was $178,400 in July, which is 15.1 percent lower than July 2008. Distressed properties continue to weigh down the median price because they typically sell for 15 to 20 percent less than traditional homes.

Single-family home sales increased 6.5 percent to a seasonally adjusted annual rate of 4.61 million in July from a pace of 4.33 million in June, and are 5.0 percent higher than the 4.39 million-unit level in July 2008. The median existing single-family home price was $178,300 in July, which is 14.6 percent below a year ago.

Existing condominium and co-op sales jumped 12.5 percent to a seasonally adjusted annual rate of 630,000 units in July from 560,000 in June, and are 5.9 percent above the 595,000-unit level a year ago. The median existing condo price4 was $178,800 in July, down 18.9 percent from July 2008.

Regionally, existing-home sales in the Northeast surged 13.4 percent to an annual pace of 930,000 in July, and are 3.3 percent higher than July 2008. The median price in the Northeast was $236,700, down 15.0 percent from a year ago.

Existing-home sales in the Midwest jumped 10.9 percent in July to a level of 1.22 million and are 8.0 percent above a year ago. The median price in the Midwest was $157,200, which is 5.9 percent less than July 2008.

In the South, existing-home sales rose 7.1 percent to an annual pace of 1.95 million in July and are 5.4 percent higher than July 2008. The median price in the South was $164,500, down 7.1 percent from a year ago.

Existing-home sales in the West slipped 1.7 percent to an annual rate of 1.13 million in July, but are 1.8 percent above a year ago. The median price in the West was $202,300, which is 28.0 percent below July 2008.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

# # #
NOTE: Any references to performance in states or metro areas are from unpublished raw data used to analyze regional trends; please contact your local association of Realtors® for more information.
1The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982.
3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
4Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for August will be released September 24. The next Pending Home Sales Index & Forecast is scheduled for September 1; release times are 10 a.m. EDT.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.

Labels: buy naples real estate, naples fl real estate, naples florida home sales, Naples Real Estate, Naples Real Estate Market, real estate, real estate sales trends

Pending Home Sales Record Fourth Straight Monthly Gain

Washington, July 01, 2009

Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the National Association of Realtors®.

The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004.

Lawrence Yun, NAR chief economist, cautions that there could be delays in the number of contracts that go to closing. “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” he said. “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.”

The Pending Home Sales Index in the Northeast rose 3.1 percent to 80.9 in May and is 6.8 percent above a year ago. In the Midwest the index slipped 1.3 percent to 89.2 but is 11.4 percent above May 2008. The index in the South declined 1.7 percent to 92.6 in May but is 7.9 percent higher than a year ago. In the West the index rose 2.2 percent to 96.9 and is 0.7 percent above May 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said the appraisal issue is complicated. “We see that distressed homes often are selling for 20 percent less than normal homes in the same area, but some appraisals don’t distinguish between traditional homes and distressed property,” he said. “In many cases appraisers from outside the area are being used, but as everyone knows real estate is local and appraisals should be done by an expert with local expertise.”McMillan said sellers shouldn’t hesitate to speak with an appraiser about their home. “Sellers should feel free to tell an appraiser about improvements and renovations to their home, and how it compares with other homes in the neighborhood,” he said.

“Also, if recent sales in the neighborhood were discounted, but not similar to your home in terms of quality or condition, that should be pointed out. It wouldn’t hurt to put all this in writing, especially if an appraiser is not familiar with your area. A Realtor® could offer guidance and information to help you with this process.”

NAR’s Housing Affordability Index2 remains at historic highs. The affordability index fell to 171.6 in May from an upwardly revised 178.8 in April, which was the highest on record dating back to 1970. “Under these conditions the typical family would devote only 14.6 percent of gross income to mortgage principal and interest, which is one of the lowest percentages on record,” Yun said.

The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.A median-income family, earning $60,800, could afford a home costing $296,700 in May with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford. The affordable price was significantly higher than the median existing single-family home price in May, which was $172,900.

The first-time buyer tax credit also is benefiting the market. “Strong activity by entry level buyers is helping to absorb inventory and allow some existing owners to make a trade,” Yun said.Existing-home sales should trend up through the end of the year, with normal local market differences. “The big question is how much the appraisal issue will impact the ability of contracts to go to closing,” Yun said.

“We are currently conducting a study to assess the degree to which new appraisal rules are impacting home sales.”The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

1The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.2The Housing Affordability Index is a relative index where a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced existing single-family home, taking into account the relationship between median home price, average effective interest rate for loans closed on existing homes, and median family income. The higher the index, the better housing affordability is for buyers.The calculation assumes a downpayment of 20 percent and a qualifying ratio of 25 percent of gross income for mortgage principle and interest payments. The index is a general gauge with conditions varying widely around the country. Affordability conditions are lower for first-time buyers with smaller downpayments and less income.Monthly publication of the index began in 1981 with annual data calculated back to 1970.Existing-home sales for June will be released July 23; the next Pending Home Sales Index will be on August 4.

Labels: Florida Real Estate, naples fl real estate, Naples Real Estate Market, real estate, real estate sales trends

April existing home sales rise by 2.9 percent
Buyers are taking advantage of a steep drop in prices

updated 10:37 a.m. ET, Wed., May 27, 2009 WASHINGTON -

Sales of previously occupied homes rose modestly from March to April as buyers who were brave enough to dive into the market took advantage of prices that were 15.4 percent below year-ago levels.

The National Association of Realtors said Wednesday that home sales rose 2.9 percent to an annual rate of 4.68 million last month, from a downwardly revised pace of 4.55 million in March.
The results slightly beat economists' forecasts. Sales had been expected to rise to an annual pace of 4.66 million units, according to Thomson Reuters.

The median sales price plunged to $170,200, down from $201,300 in the same month last year. That was the second-largest price drop on record after January, when prices fell 17.5 percent.
The number of unsold homes on the market at the end of April rose almost 9 percent from a month earlier to nearly 4 million. That's a 10-month supply at the current sales pace.

"We still need a continuing and consistent rise in home sales to get the inventory down," said Lawrence Yun, the group's chief economist. Only then, economists say, will prices stabilize and eventually recover. Another big problem, Yun noted, is the lack of activity at the higher-end of the housing market, among properties priced at $750,000 or higher.

Interest rates are much higher for loans above $730,000 that cannot be purchased by Fannie Mae or Freddie Mac. And that's sapping demand for expensive properties.

"It's just stalled. completely stalled," Yun said. The Realtors group is pushing for the Federal Reserve to start buying up those loans, even if they are not backed by Fannie and Freddie. It also wants the higher loan limits to apply to the whole country, not just expensive areas like California and New York.
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Labels: naples fl foreclosures, naples fl real estate, Real Estate Prices, real estate sales trends

Made-over condos sell in North Naples
By Christina Cepero
News Press

Along Vanderbilt Beach, condominiums have been selling after a proactive
effort by Bonita Springs-based K2 Design Group to spruce up buildings
and residences up and down Gulfshore Drive.

“So many made good use of a market in pause, and we’re now seeing buyers
walking into condominiums that knock their socks off and they’re buying
them,” explained Mari Vesci, owner of Mari Vesci Realtors, Inc. “For
homeowners as well as sellers, the trend is definitely makeovers.”

Vanderbilt Beach, a 1.3 mile stretch of land between a Ritz-Carlton
Hotel and Delnor-Wiggins State Park, has prime beachfront real estate,
much of it in high-rise towers. Upscale dining in the immediate vicinity
include Baleen at La Playa Beach & Golf Resort and the Turtle Club. The
intimate neighborhood even holds vestiges of Old Florida with Buzz’s
Lighthouse Restaurant and Lighthouse Inn on Vanderbilt Lagoon.

The demographic most attracted to Vanderbilt Beach comprises of empty
nesters in the 50-year age range, Vesci said. Whereas the traditional
buyer has been a second-home buyer, high technology and the virtual
office have paved the way for longer stays.

A perfect example of the what is happening in many of Southwest
Florida’s more mature high-rise condominium communities is found at
Vanderbilt Gulfside Condominium, where exterior common areas as well as
residences are sporting sophisticated new looks.

Flexible living space and innovative storage solutions are high on the
priority list for those wanting to turn dated vacation condos into
year-round residences. In one condominium, the successful transformation
of a two-bedroom layout resulted in two additional remodel contracts for
K2 Design Group, a single-source architectural, interior design and
construction management firm.

“The owners wanted better use of their home,” said Jenny Carter,
president and principal designer of K2 Design Group.

As in the case of many homes, one of the bedrooms was rarely used.
Opening that one room changes the dynamic of the entire home with
increased functionality and stylish looks. To accomplish that, K2 Design
Group expanded the air conditioning onto the lanai at one end of a great
room and created an attractive work space, a beautiful setting to catch
up on e-mail. In the same area, sliding acoustical panel doors allow the
space to convert — with finger-tip ease — to a guest suite for the
occasional visitor.

In the kitchen, which was opened to living areas, glass-walled cabinetry
showcases the homeowner’s handcrafted blown glass collection while
concealing electrical and plumbing.

“This is a dramatic change,” Carter said. “By eliminating the wall that
had previously housed the electrical panel, we gained a view. Glass in
the curio cabinets also allows the Gulf view to be seen from the entry.”
Throughout the home, ceilings were opened and ductwork was moved. The
foyer was opened. In addition to a much-improved interior, the facelift
opened the residence and changed the focus from walls to beautiful views.
Several touches incorporate existing features. A wave ceiling treatment
adds interest and creates the illusion of depth without having to raise
the ceiling. Paneling kitchen appliances with wood skins matching
cabinetry lends an integrated look. Recovered living room furniture
blends with the renewed interior.

“High-rise makeovers take a bit of ingenuity, and K2 Design Group has
completed many,” Carter said. “We won new contracts when residents in
the same building saw everything that we did and appreciated that we
could completely open a two-bedroom unit. Clever adjustments enable
condominium residents to enjoy their homes so much more.”

When they were built in the 1980s, these beachfront residences were not
about high ceilings. The entire ceiling was lowered to the depth of the
duct work.

“We have the technology and skills today to open high-rise spaces and
the impression is dramatic,” Carter said. “Homebuyers do not always have
the vision to imagine what’s possible. For sellers, these makeovers
create interest.”

Celebrating a 15-year anniversary, K2 Design Group has completed upscale
residential and commercial projects in Southwest Florida — from Marco
Island to North Fort Myers — and throughout the United States.
Internationally, the company has completed work in the Bahamas, Canada,
England, Germany, Ireland and Panama.

Sitting on 8.8 acres, the 80s-era high-rise property — 72 residences in
each of two towers — is in the midst of an exterior facelift. Parking
structures, entry gate and porte-cochère have been replaced. Lush
landscaping has been enhanced and is receiving increased attention with
a new irrigation system. Attractive pavers replaced asphalt along the
winding driveway and Italian stone was installed around the pool and
walkway. In addition to fresh paint, exterior balconies, railings and
screens are being upgraded.

Along Vanderbilt Beach, many bought their homes more than 20 years ago
for well under $200,000. In addition, many were bought as vacation
homes. While the real estate appreciated considerably, the common
thinking was that there was no need to spend money to fix what was not
broken, especially when cosmetic improvements would be costly.
Perspectives change in a buyers’ market, Vesci said.

“Potential buyers have certain expectations about the amenities,” she
said. “First impressions count. No matter how nice a condominium is, a
buyer considering the purchase of a condominium might not even come to
look if they hear that the building’s common areas are not scheduled for
some kind of improvement.”

At Vanderbilt Gulfside Condominiums, sellers, homeowners and real estate
agents alike are pleased with a fresh exterior and stylish interiors,
said Pat Gibbs, manager.

“Our residents are thrilled that the exterior is brand new and in
keeping with the upscale nature of the neighborhood,” she said. “And
Realtors love it when they can show a property like this following a
makeover. It generates excitement.”

For more information, visit k2design.net.

http://www.news-press.com/apps/pbcs.dll/article?AID=/20090506/NEWS0102/90506062&template=printart

For all of your real estate needs, call Mari Vesci at 239-269-8889 or email mari@vesci.com

Labels: naples fl real estate, Naples Real Estate, Naples Real Estate Market, real estate sales trends, Southwest Florida Real Estate Sales