A promising climb in home sales throughout the country amidst insufficient supply caused home prices to steadily rise in most metro areas during the second quarter, according to the latest quarterly report by the National Association of Realtors®.
The median existing single-family home price increased in 93 percent of measured markets1, with 163 out of 176 metropolitan statistical areas2 (MSAs) showing gains based on closings in the second quarter compared with the second quarter of 2014. Thirteen areas (7 percent) recorded lower median prices from a year earlier.
The number of rising markets in the second quarter increased compared to the first quarter, when price gains were recorded in 85 percent of metro areas. Thirty-four metro areas in the second quarter (19 percent) experienced double-digit increases, a decline from the 51 metro areas in the first quarter. Nineteen metro areas (11 percent) experienced double-digit increases in the second quarter of 2014.
Lawrence Yun, NAR chief economist, says the housing market has shifted into a higher gear in recent months. “Steady rent increases, the slow rise in mortgage rates and stronger local job markets fueled demand throughout most of the country this spring,” he said. “While this led to a boost in sales paces not seen since before the downturn, overall supply failed to keep up and pushed prices higher in a majority of metro areas.”
Adds Yun, “With home prices and rents continuing to rise and wages showing only modest growth, declining affordability remains a hurdle for renters considering homeownership – especially in higher-priced markets.”
The national median existing single-family home price in the second quarter was $229,400, up 8.2 percent from the second quarter of 2014 ($212,000). The median price during the first quarter of this year increased 7.1 percent from a year earlier.
The five most expensive housing markets in the second quarter were the San Jose, Calif., metro area, where the median existing single-family price was $980,000; San Francisco, $841,600; Anaheim–Santa Ana, Calif., $685,700; Honolulu, $698,600; and San Diego, $547,800.
The five lowest-cost metro areas in the second quarter were Cumberland, Md., where the median single-family home price was $82,400; Youngstown–Warren–Boardman, Ohio, $85,000; Rockford, Ill., $94,700; Decatur, Ill., $96,000; and Elmira, N.Y., $98,300.
Total existing-home sales3, including single family and condo, increased 6.6 percent to a seasonally adjusted annual rate of 5.30 million in the second quarter from 4.97 million in the first quarter, and are 8.5 percent higher than the 4.89 million pace during the second quarter of 2014.
“The ongoing rise in home values in recent years has greatly benefited homeowners by increasing their household wealth,” says Yun. “In the meantime, inequality is growing in America because the downward trend in the homeownership rate means these equity gains are going to fewer households.”
At the end of the second quarter, there were 2.30 million existing homes available for sale4, slightly above the 2.29 million homes for sale at the end of the second quarter in 2014. The average supply during the second quarter was 5.1 months – down from 5.5 months a year ago.
Metro area condominium and cooperative prices – covering changes in 61 metro areas – showed the national median existing-condo price was $217,400 in the second quarter, up 3.1 percent from the second quarter of 2014 ($210,800). Fifty metro areas (82 percent) showed gains in their median condo price from a year ago; 11 areas had declines.
Rising home prices weighed on affordability in the second quarter compared to the second quarter of last year despite an uptick in the national family median income ($66,637)5. To purchase a single-family home at the national median price, a buyer making a 5 percent downpayment would need an income of $49,195, a 10 percent downpayment would require an income of $46,605, and $41,427 would be needed for a 20 percent downpayment.
NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark., says Realtors® are reporting strong competition and limited days on market for available homes – especially at the entry-level price range. “Buyers should work with their Realtor® to deploy a negotiation strategy that helps their offer stand out,” he said. “If a bidding war occurs, it’s important for the buyer to stay patient and only counteroffer up to what he or she can comfortably afford. It’s better to walk away and wait for the right home instead of being in a situation where one has purchased a home above their means.”
Total existing-home sales in the Northeast increased 10.3 percent in the second quarter and are 8.6 percent above the second quarter of 2014. The median existing single-family home price in the Northeast was $269,300 in the second quarter, up 5.2 percent from a year ago.
In the Midwest, existing-home sales jumped 13.4 percent in the second quarter and are 12.7 percent higher than a year ago. The median existing single-family home price in the Midwest increased 8.7 percent to $182,000 in the second quarter from the same quarter a year ago.
Existing-home sales in the South fell rose 1.1 percent in the second quarter and are 6.3 percent above the second quarter of 2014. The median existing single-family home price in the South was $202,900 in the second quarter, 8.7 percent above a year earlier.
In the West, existing-home sales climbed 8.1 percent in the second quarter and are 8.1 percent above a year ago. The median existing single-family home price in the West increased 9.6 percent to $325,200 in the second quarter from the second quarter of 2014.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
NOTE: NAR releases quarterly median single-family price data for approximately 170 Metropolitan Statistical Areas (MSAs). In some cases the MSA prices may not coincide with data released by state and local Realtor® associations. Any discrepancy may be due to differences in geographic coverage, product mix, and timing. In the event of discrepancies, Realtors® are advised that for business purposes, local data from their association may be more relevant.
Data tables for MSA home prices (single family and condo) are posted at http://www.realtor.org/topics/metropolitan-median-area-prices-and-affordability/data. If insufficient data is reported for a MSA in particular quarter, it is listed as N/A. For areas not covered in the tables, please contact the local association of Realtors®.
1The Ann Arbor, MI MSA and Harrisburg-Carlisle, PA MSA will now be included in the single-family price report.
2Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. NAR adheres to the OMB definitions, although in some areas an exact match is not possible from the available data. A list of counties included in MSA definitions is available at: http://www.census.gov/population/estimates/metro-city/List4.txt.
Regional median home prices are from a separate sampling that includes rural areas and portions of some smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns.
Median price measurement reflects the types of homes that are selling during the quarter and can be skewed at times by changes in the sales mix. For example, changes in the level of distressed sales, which are heavily discounted, can vary notably in given markets and may affect percentage comparisons. Annual price measures generally smooth out any quarterly swings.
NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series dates back to 1989.
Because there is a concentration of condos in high-cost metro areas, the national median condo price often is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. As the reporting sample expands in the future, additional areas will be included in the condo price report.
3The seasonally adjusted annual rate for a particular quarter represents what the total number of actual sales for a year would be if the relative sales pace for that quarter was maintained for four consecutive quarters. Total home sales include single family, townhomes, condominiums and co-operative housing.
Seasonally adjusted rates are used in reporting quarterly data to factor out seasonal variations in resale activity. For example, sales volume normally is higher in the summer and relatively light in winter, primarily because of differences in the weather and household buying patterns.
4Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90 percent of transactions and condos were measured only on a quarterly basis).
5Income figures are rounded to the nearest hundred, based on NAR modeling of Census data. Qualifying income requirements are determined using several scenarios on downpayment percentages and assume 25 percent of gross income devoted to mortgage principal and interest at a mortgage interest rate of 4.0%.
NOTE: Existing-Home Sales for July will be released August 20, and the Pending Home Sales Index for July will be released August 27; release times are 10:00 a.m. EDT.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the “News, Blogs and Videos” tab on the website. Statistical data in this release, as well as other tables and surveys, are posted in the “Research and Statistics” tab.
CONTACT: Adam DeSanctis, 202/383-1178, firstname.lastname@example.org
Real Estate Archives
The latest statistics from Corelogic shows that completed foreclosures continue dropping and are at their lowest numbers since 2007. The numbers for mortgages in default over 90 days have also declined from a year ago.
CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, today released its June 2015 National Foreclosure Report which shows that the foreclosure inventory declined by 28.9 percent and completed foreclosures declined by 14.8 percent since June 2014. The number of foreclosures nationwide decreased year over year from 50,000 in June 2014 to 43,000 in June 2015, representing a decrease of 63.3 percent from the peak of 117,119 completed foreclosures in September 2010, according to CoreLogic data.
Experience the interactive Multimedia News Release here: http://www.multivu.com/players/English/71280543-corelogic-june-2015-foreclosures/
Completed foreclosures are an indication of the total number of homes actually lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 5.8 million completed foreclosures across the country, and since home ownership rates peaked in the second quarter of 2004, there have been approximately 7.8 million homes lost to foreclosure.
As of June 2015, the national foreclosure inventory included approximately 472,000, or 1.2 percent, of all homes with a mortgage compared with 664,000 homes, or 1.7 percent, in June 2014. The June 2015 foreclosure rate is the lowest since December 2007.
CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO) declined by 23.3 percent from June 2014 to June 2015, with 1.3 million mortgages, or 3.5 percent, falling into this category. This is the lowest serious delinquency rate since January 2008. On a month-over-month basis, the number of seriously delinquent mortgages declined by 3.4 percent.
“The foreclosure rate for the U.S. has dropped to its lowest level since 2007, supported by a continuing decline in loans made before 2009, gains in employment, and higher housing prices,” said Frank Nothaft, chief economist for CoreLogic. “The decline has not been uniform geographically, as the foreclosure rate varies across metropolitan areas. In the Denver and San Francisco areas, the foreclosure rate has fallen to 0.3 percent, whereas in the Tampa market the rate is 3.5 percent and in Nassau and Suffolk counties it is an elevated 4.8 percent.”
“Serious delinquency is at the lowest level in seven and a half years reflecting the benefits of slow but steady improvements in the economy and rising home prices,” said Anand Nallathambi, president and CEO of CoreLogic. “We are also seeing the positive impact of more stringent underwriting criteria for loans originated since 2009 which has helped to lower the national seriously delinquent rate.”
Additional highlights as of June 2015:
- On a month-over-month basis, completed foreclosures increased by 4.8 percent from the 41,000* reported in May 2015*. As a basis of comparison, before the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006.
- The five states with the highest number of completed foreclosures for the 12 months ending in June 2015 were: Florida (102,000), Michigan (46,000), Texas (33,000), California (29,000) and Ohio (27,000). These five states accounted for almost half of all completed foreclosures nationally.
- Four states and the District of Columbia had the lowest number of completed foreclosures for the 12 months ending in June 2015: South Dakota (32), the District of Columbia (107), North Dakota (313), Wyoming (499) and West Virginia (566).
- Four states and the District of Columbia had the highest foreclosure inventory as a percentage of all mortgaged homes: New Jersey (4.7 percent), New York (3.7 percent), Florida (2.7 percent), Hawaii (2.5 percent) and the District of Columbia (2.4 percent).
- The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Alaska (0.3 percent), Minnesota (0.4 percent), Montana (0.4 percent) Nebraska (0.4 percent) and North Dakota (0.4 percent).
*May 2015 data was revised. Revisions are standard, and to ensure accuracy CoreLogic incorporates newly released data to provide updated results.
For ongoing housing trends and data, visit the CoreLogic Insights Blog: http://www.corelogic.com/blog.
The data in this report represents foreclosure activity reported through June 2015.
This report separates state data into judicial versus non-judicial foreclosure state categories. In judicial foreclosure states, lenders must provide evidence to the courts of delinquency in order to move a borrower into foreclosure. In non-judicial foreclosure states, lenders can issue notices of default directly to the borrower without court intervention. This is an important distinction since judicial states, as a rule, have longer foreclosure timelines, thus affecting foreclosure statistics.
A completed foreclosure occurs when a property is auctioned and results in the purchase of the home at auction by either a third party, such as an investor, or by the lender. If the home is purchased by the lender, it is moved into the lender’s real estate-owned (REO) inventory. In “foreclosure by advertisement” states, a redemption period begins after the auction and runs for a statutory period, e.g., six months. During that period, the borrower may regain the foreclosed home by paying all amounts due as calculated under the statute. For purposes of this Foreclosure Report, because so few homes are actually redeemed following an auction, it is assumed that the foreclosure process ends in “foreclosure by advertisement” states at the completion of the auction.
The foreclosure inventory represents the number and share of mortgaged homes that have been placed into the process of foreclosure by the mortgage servicer. Mortgage servicers start the foreclosure process when the mortgage reaches a specific level of serious delinquency as dictated by the investor for the mortgage loan. Once a foreclosure is “started,” and absent the borrower paying all amounts necessary to halt the foreclosure, the home remains in foreclosure until the completed foreclosure results in the sale to a third party at auction or the home enters the lender’s REO inventory. The data in this report accounts for only first liens against a property and does not include secondary liens. The foreclosure inventory is measured only against homes that have an outstanding mortgage. Generally, homes with no mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 85 percent coverage of U.S. foreclosure data.
The data provided is for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact Lori Guyton at email@example.com or Bill Campbell at firstname.lastname@example.org. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.
CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled services provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries.
CONTACT: For real estate industry and trade media: Bill Campbell, email@example.com, 212-995-8057; For general news media: Lori Guyton, firstname.lastname@example.org, 901-277-6066
RELATED LINKS http://www.corelogic.com
The housing market has it’s ups and downs for all of us, even the ultra rich. With the high end market being flat about a year and a half ago, it’s now on the uptrend and has been for over a year. The super rich are now buying up these mega mansions for investment purposes and for other reasons as well.
A growing number of ultra high net worth (UHNW) individuals view homes as ‘opportunity gateways’, driving buying decisions that are based on potential opportunities from owning these luxury residential properties, according to the latest study by Wealth-X and the Sotheby’s International Realty® brand released today.
The UHNW Luxury Real Estate Report: Homes As Opportunity Gateways reveals two trends that are fueling the rise in the number of ultra wealthy individuals who are buying luxury homes:
(1) International home-buying by UHNW individuals (defined as those with at least US$30 million in assets) from emerging nations seeking a safe investment diversification.
(2) Home-buying as part of a program to gain citizenship or residency status in foreign nations.
The report provides insight into the UHNW residential real estate opportunities in Sydney and Vancouver for buyers seeking safe investment diversification; and Malta, the Bahamas and Sao Paulo, which may appeal to ultra wealthy buyers who are seeking citizenship or residency through property investment.
The UHNW Residential Real Estate index, tracked by Wealth-X, rose to 115.2 in Q2 2015, an 8.3% rise year-on-year, and the sixth consecutive quarter in which the index has risen. The continued rise in the index reflects the confidence of UHNW individuals to invest in luxury residential real estate.
The index takes into account the full range of luxury residential properties that are owned by the world’s wealthiest individuals. Wealth-X data shows there are 211,275 UHNW individuals globally, who collectively hold nearly US$3 trillion in real estate assets, equal to 10% of their net worth.
Below are other key findings from the report:
- 12% of second homes purchased by UHNW individuals in emerging countries (those who reside in BRICS nations) are located outside their country of residence.
- Recent market fluctuations in emerging nations are leading a new generation of UHNW investors to consider investing in luxury residential real estate in Western markets.
- Chinese UHNW individuals make up the third largest share of foreign UHNW homeowners in the United States, behind only Canada and the United Kingdom.
- Twenty nations in Europe and the Americas now offer citizenship or residency programs to individuals willing to invest in domestic residential real estate.
- Many residential real estate markets with such programs – including Sao Paulo, Malta, and the Bahamas – offer good long-term investment opportunities.
Wealth-X President David Friedman commented: “Wealth-X is pleased to partner with the Sotheby’s International Realty brand for this third luxury real estate report for 2015. This new joint study explores the trends and home-buying motivations of a distinct group of ultra wealthy individuals in the emerging markets. As their wealth grows, so will their investment fueled by various motivations, be it to diversify their portfolio or to gain citizenship or residency in a foreign country.”
According to Philip White, president and chief executive officer, Sotheby’s International Realty Affiliates LLC, this joint report was designed to provide an understanding of the trends driving buying decisions of ultra high net worth individuals around the world. “The research reveals trends that go beyond traditional motivations and help guide real estate investments that contribute to long-term wealth,” he said. “It underscores the important role real estate plays in a larger strategy to build a valuable asset portfolio.”
Download the report here.
Wealth-X is the global authority on wealth intelligence, providing sales, marketing, strategy and compliance solutions to clients in the financial services, luxury, not-for-profit and education sectors. Its award-winning research and thought leadership are regularly cited by the world’s media such as CNBC, Financial Times, Thomson Reuters and BBC. Wealth-X has more than 250 staff in 10 locations, including Singapore, London and New York. (www.wealthx.com)
About Sotheby’s International Realty Affiliates LLC
The Sotheby’s International Realty network currently has approximately 17,000 sales associates located in approximately 800 offices in 61 countries and territories worldwide. Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. Sotheby’s International Realty Affiliates LLC is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services. In February 2004, Realogy entered into a long-term strategic alliance with Sotheby’s, the operator of the auction house. The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a full franchise system. Affiliations in the system are granted only to brokerages and individuals meeting strict qualifications. Sotheby’s International Realty Affiliates LLC supports its affiliates with a host of operational, marketing, recruiting, educational and business development resources. Each Office is Independently Owned and Operated. Franchise affiliates also benefit from an association with the venerable Sotheby’s auction house, established in 1744.
CONTACT: Wealth-X media contact: Fauzi Ahmad, +65 8653 6514, email@example.com; Sotheby’s International Realty Affiliates LLC media contact: Lindsey Scharf, +1 (973) 407-5596, firstname.lastname@example.org
RELATED LINKS http://www.wealthx.com
The report is in for the month of June and the results for home sales in California are showing positive once again according to the CALIFORNIA ASSOCIATION OF REALTORS®. Pending home sales were up again over 12 percent as compared to June 2014, marking the seventh straight month of year-to-year gains and the fifth straight month of double-digit advances. A breakdown of distressed sales by County is in the chart below.
LOS ANGELES, July 23, 2015 /PRNewswire-USNewswire/ — California pending home sales continued to gain steam in June, registering seven months of continued annual increases and the fifth consecutive month of double-digit increases, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.
In a separate report, California REALTORS® responding to C.A.R.’s June Market Pulse Survey saw a reduction in floor calls, listing appointments, and open house traffic, compared with May. The Market Pulse Survey is a monthly online survey of more than 300 California REALTORS®, which measures data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.
Pending home sales data:
- California pending home sales were up 12.5 percent on an annual basis from the revised 107 index recorded in June 2014, marking the seventh straight month of year-to-year gains and the fifth straight month of double-digit advances.
- Statewide pending home sales fell in June on a month-to-month basis, with the Pending Home Sales Index (PHSI)* decreasing 2.6 percent from a revised 123.6 in May to 120.4, based on signed contracts. The month-to-month decrease was slightly below the average May-June loss of 1.9 percent observed in the last seven years.
- A shortage of available homes in the San Francisco Bay Area stifled pending sales in June, pushing the PHSI to 127.9, down 5.3 percent from 135.1 in May and down 0.9 percent from the 129.1 index recorded in June 2014.
- Pending home sales in Southern California continued last month’s increase by rising 4 percent in June to reach an index of 109.6, up 14.2 percent from the June 2014 index of 96.
- Central Valley pending sales fell in June, dropping 8.2 percent from May to reach an index of 99.5 in June but up 14.2 percent from the 87.2 index of June 2014.
Equity and distressed housing market data:
- The share of equity sales – or non-distressed property sales – declined slightly in June to make up 92.4 percent of all home sales, remaining near the highest level since late 2007. Equity sales made up 92.6 percent of all home sales in May and 89.9 percent in June 2014. The share of equity sales has been at or near 90 percent since mid-2014.
- Conversely, the combined share of all distressed property sales (REOs and short sales) rose slightly in June, up to 7.6 percent from 7.4 percent in May. Distressed sales made up 10.1 percent of total sales a year ago. Ten of the 43 counties that C.A.R. reported showed month-to-month decreases in their distressed sales shares, with Alameda and Santa Clara having the smallest share of distressed sales at 1 percent, followed by San Mateo (2 percent), Contra Costa (3 percent), and San Francisco (3 percent). Glenn had the highest share of distressed sales at 27 percent, followed by Merced and Siskiyou (both at 23 percent).
June REALTOR® Market Pulse Survey**:
- Reversing last month’s decrease, the share of sales closing below asking price increased to 43 percent in June, up from 40 percent in May, but down from the highest point of 55 percent in January 2015. More than a third of homes (33 percent) closed over asking price, and 24 percent closed at asking price.
- For the one in three homes that sold over asking price, the premium paid over asking price increased in June, suggesting increased market competition among home buyers in some local markets. In June, homes that sold above asking price sold for an average of 11 percent above asking price, up from 8 percent in May and 7.3 percent in June 2014.
- The 43 percent of homes that sold below asking price sold for an average of 11 percent below asking price in June, up from 7 percent in May.
- The share of properties receiving multiple offers was unchanged at 65 percent in June but down slightly from 66 percent in June 2014.
- The average number of offers per property increased slightly to 2.9 from 2.8 in May and 2.7 in June 2014.
- REALTOR® respondents reported that floor calls, listing appointments, and open house traffic all declined in June, compared with the previous month.
- While the majority of REALTORS® (83 percent) expect better or similar market conditions over the next year, the percentage of REALTORS® who are optimistic about conditions over the coming year has been on the decline for the past six months from 62 percent in January to 44 percent in June.
Share of Distressed Sales to Total Sales
Type of Sale
Total Distressed Sales
Other Distressed Sales (Not Specified)
Single-family Distressed Home Sales by Select Counties
(Percent of total sales)
San Luis Obispo
*Note: C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state. Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property. The majority of pending home sales usually becomes closed sales transactions one to two months later. The year 2008 was used as the benchmark for the Pending Homes Sales Index. An index of 100 is equal to the average level of contract activity during 2008.
**C.A.R.’s Market Pulse Survey is a monthly online survey of more than 300 California REALTORS® to measure data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.
Leading the way…® in California real estate for 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
SOURCE CALIFORNIA ASSOCIATION OF REALTORS
CONTACT: Mary Belongia, (213) 739-8363, email@example.com
Florida’s housing market wrapped up 2014 with more closed sales, more new listings and higher median prices compared to the year before, according to the latest housing data released by Florida Realtors®.
“In December and throughout 2014, we’ve seen positive signs that Florida’s housing sector is on a steady, sustainable path,” said 2015 Florida Realtors President Andrew Barbar, a broker with Keller Williams Realty Services in Boca Raton. “Sales are moving at a steady, moderate pace and home prices are stabilizing. Florida’s economy continues to grow, more jobs are being created and mortgage interest rates remain at historically low levels, which will help drive the state’s housing market forward in 2015.”
Statewide closed sales of existing single-family homes totaled 22,414 in December, up 15.8 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.
New listings of single-family homes for sale last month reached 24,840, up 2.9 percent year-to-year. Meanwhile, the statewide median sales price for existing single-family homes in December was $185,000, up 6.9 percent from the previous year. December marked the 37th month in a row that statewide median sales prices for both single-family homes and townhome-condo properties rose year-over-year.
According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in November 2014 was $206,200, up 5.6 percent from the same month a year ago. In California, the statewide median sales price for single-family existing homes in November was $445,280; in Massachusetts, it was $330,000; in Maryland, it was $250,424; and in New York, it was $227,500. The median is the midpoint; half the homes sold for more, half for less.
Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 9,466 units sold statewide last month, up 11.3 percent compared to December 2013. Meanwhile, new listings of townhome-condos reached 12,438 last month, up 3.4 percent year-to-year. The statewide median for townhouse-condo properties was $149,000, up 8.4 percent over the previous year. NAR reported that the national median existing condo price in November 2014 was $199,000.
“The December numbers are strongly positive for both the single-family and condo markets,” said Florida Realtors Chief Economist Dr. John Tuccillo. “We are seeing the steady and sustainable growth that has characterized the market the entire year continuing as the year ends. Of particular note is the inventory levels in the balanced market range: We’re keeping a close eye on the lack of inventory in the lower price ranges, but by and large, the market is in very good shape.”
Statewide closed sales of existing single-family homes totaled 244,543 in 2014, up 8.1 percent compared to the 2013 figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations.
New listings for existing single-family homes rose 7.4 percent in 2014 compared to 2013. The statewide median sales price for single-family existing homes in 2014 was $178,000, up 5.3 percent from the previous year.
Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 108,354 units sold statewide in 2014, down slightly (-1.2 percent) from 2013. The closed sales data reflected fewer short sales in 2014 compared to the previous year: Short sales for condo-townhouse properties declined 58.2 percent while short sales for single-family homes dropped 50.7 percent.
New listings for townhouse-condos for the year increased 2.2 percent compared to a year ago. The statewide median for townhouse-condo properties in 2014 was $140,000, up 9.8 percent over the previous year.
At the end of 2014 and also for December 2014, inventory for single-family homes stood at a 5.2-months’ supply, while inventory for townhouse-condo properties was at a 5.9-months’ supply, according to Florida Realtors.
Florida Realtors Chief Economist Dr. John Tuccillo said, “We close the books on 2014 on a very positive note. The year marks the transition of the Florida real estate market from a rapid recovery to a path of steady growth. Virtually all the metrics for the market are moving in the right direction at levels that can be sustained.”
The interest rate for a 30-year fixed-rate mortgage averaged 4.17 percent for 2014, up from the previous year’s average of 3.98 percent, according to Freddie Mac.
To see the full statewide housing activity reports, go to Florida Realtors Media Center at http://media.floridarealtors.org/ and look under Latest Releases, or download the December 2014 and the Year End 2014 data report PDFs under Market Data at: http://media.floridarealtors.org/market-data
Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 140,000 members in 58 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.
SOURCE Florida Realtors
CONTACT: Marla Martin, Media Relations and Communications Manager, orJeff Zipper, Vice President of Communications; 407/438-1400, ext. 2326 or 2314
Potential home sellers in many Western metro areas, including the Bay Area, Las Vegas and Phoenix, are well-positioned to take advantage of locally strong demand and are likely to have the upper hand in negotiations when selling their homes, according to the latest Zillow® ranking of national buyers’ and sellers’ markets.
For those looking to buy a home, Midwestern and Mid-Atlantic metros including Chicago, Cleveland and Philadelphia offer the most favorable conditions, with price discounts exceeding 5 percent in some areas and listings remaining active in some cases for 100 days or more.
Zillow analyzed data on actual sales prices compared to asking prices, the number of days listings spent on Zillow and the percentage of homes on the market with a price cut, and ranked the 30 largest metro areas in the country to determine whether buyers or sellers have more negotiating power in a given market. In this analysis, a sellers’ market is not necessarily one where home values are rising, but rather one in which homes are on the market for a shorter time, price cuts occur less frequently and homes are sold at prices very close to (or greater than) their last listing price. In buyers’ markets, homes for sale stay on the market longer, price cuts occur more frequently and homes are sold for less relative to their listing price, giving buyers more negotiating power.
“As most housing markets continue to improve nationwide, the relative position of buyers and sellers continues to vary considerably by geography,” said Zillow Chief Economist Stan Humphries. “In some markets, buyers are finding themselves in strong bargaining positions relative to sellers, confidently offering less than the asking price on a home they had months to consider. In other areas, it’s sellers that are squarely in the driver’s seat with their homes selling within days of listing, often after bidding wars that increase the sale price above the asking price.”
“Many of the strongest sellers’ markets are in areas that were hardest hit by the housing bust, places like California, Nevada and Arizona, which may seem counter-intuitive. But much of that strength is driven by investor interest, as many distressed and non-distressed homes are purchased and transformed into rentals. This investor activity is contributing to very low inventory levels, which increases demand and helps drive up prices, particularly for less expensive homes in these markets.”
|Top 10 Sellers’ Markets||Top 10 Buyers’ Markets|
|1.||San Jose, Calif.||1.||Chicago, Ill.|
|2.||San Francisco, Calif.||2.||Cleveland, Ohio|
|3.||Sacramento, Calif.||3.||Philadelphia, Pa.|
|4.||Las Vegas, Nev.||4.||Cincinnati, Ohio|
|5.||Phoenix, Ariz.||5.||New York, N.Y.|
|6.||Riverside, Calif.||6.||Pittsburgh, Pa.|
|7.||Los Angeles, Calif.||7.||Baltimore, Md.|
|8.||San Diego, Calif.||8.||St. Louis, Mo.|
|9.||Seattle, Wash.||9.||Columbus, Ohio|
|10.||Washington, DC||10.||Charlotte, N.C.|
For a full ranking of metro areas, of the cities within a particular metro or for the data that went into the buyer/seller rankings, please see the full research brief or contact firstname.lastname@example.org.
Zillow (NASDAQ: Z) is the leading real estate information marketplace, providing vital information about homes, real estate listings and mortgages through its website and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals best suited to meet their needs. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. Zillow, Inc. operates Zillow.com®, Zillow Mortgage Marketplace, Zillow Rentals, Zillow Mobile, Postlets®, Diverse Solutions®, Buyfolio™ and Mortech™. The company is headquartered in Seattle.
Zillow.com, Zillow, Postlets and Diverse solutions are registered trademarks of Zillow, Inc. Buyfolio and Mortech are trademarks of Zillow, Inc.
CONTACT: Cory Hopkins, Zillow, +1-206-757-2701 or email@example.com
Web Site: http://www.zillow.com
Flintridge Partners is pleased to announce that construction of its new senior living community Crestavilla is slated to begin in early 2013. Unparalleled amongst senior living communities in the area, the resort-style community brings together a stunning location, beautiful architectural designs and the highest standards in services and amenities. It’s a place where enriching the health and well-being of seniors is apparent from literally the ground up and is scheduled to open in 2014.
Crestavilla represents a new brand of retirement living community, comparable to a five-star resort. Living at Crestavilla will provide residents with “inspired coastal living,” from the warmth and authenticity of its Spanish Colonial architecture reminiscent of the early days of California to the programs and activities fostering a healthy physical and emotional well-being.
“Crestavilla has been designed with seniors in mind, and to take advantage of the scenic vistas of its location, not to mention the unmet need for a retirement community of this caliber,” said Marlon Fenton of Flintridge Partners.
Crestavilla will offer independent living, assisted living as well as memory care for residents in one location. Situated on 11.5 lushly landscaped acres in Laguna Niguel, Crestavilla features timeless architecture, functional floor plans and elegant design, not to mention five-star amenities and services to complete the resort style living including restaurants, a spa, theaters and a spiritual resource center. Crestavilla is located near major transportation corridors, shopping centers, medical, cultural, and recreational venues.
At the heart of Crestavilla is over 80,000 square feet of indoor amenities. Spacious residences feature a custom selection of fine interior finishes to match the elegance of the entire community and will be available in studio, one, and two bedrooms ranging up to 1,190 square feet. Crestavilla is located near the intersection of Niguel Road and Crown Valley Parkway in Laguna Niguel, California.
About Flintridge Partners
Flintridge Partners, LLC, is a real estate development company focusing on a number of specialty markets. Irvine, California based Flintridge Partners is led by an experienced group of professionals who together combine their diverse and complementary skills to manage every aspect of the company’s real estate development projects. For more information visit http://www.flintridge.us.
CONTACT: Stacia Kirby, +1-206-363-1492, firstname.lastname@example.org
Web Site: http://www.flintridge.us
Investment conditions have improved modestly across all property sectors, while property values remain flat and transaction volumes have decreased. These results were released today by CCIM Institute (www.ccim.com), one of the largest commercial real estate networks in the world, following a national third-quarter survey of CCIM members conducted by Real Estate Research Corp. (RERC).
Slow economic growth, high unemployment and anticipated federal tax increases are factors that continue to negatively impact the commercial investment environment, based on the report. The climate remains challenging for commercial real estate investors, who struggle to find viable opportunities in a slow-growth environment. A small silver lining – commercial real estate remains a reasonable and sturdy investment choice for investors seeking realistic returns and minimal volatility, according to CCIM members.
“Returns on investment income from commercial real estate can still be achieved over time for those with patience. There are plenty of investors seeking to avoid the volatility of the stock market, and who require higher yields than those offered by bonds and cash investments,” said Kenneth P. Riggs Jr., CCIM, CRE, MAI, chief real estate economist for the CCIM Institute and chairman and president of Real Estate Research Corp. “Commercial real estate is a good alternative for such investors, particularly those who are looking for income in a slow economy.”
Investment Conditions Improve
Investment condition ratings for all property types – office, industrial, retail, apartments and hotel – improved during third-quarter 2012, with the apartment sector receiving the highest score, at 7.6 on a scale of 1 to 10, with 10 being highest. The hotel and industrial sectors’ ratings rose to 5.9 and 5.6, respectively, followed by the 5.4 rating for the retail sector. The office sector investment rating rose to 4.8.
CCIM members said that the best investment strategies in this environment include buying low, keeping cash on hand for future opportunities and investing in foreclosed or distressed properties. Members also suggest looking long term and advise patience when investing.
Return vs. Risk and Value vs. Price Ratings Rise
CCIM members raised the return-versus-risk ratings and value-versus-price ratings for all property types and for commercial real estate overall during third-quarter 2012.
Specifically, the overall return-versus-risk rating for commercial real estate increased to 5.5 during third-quarter 2012, according to CCIM members. Likewise, the return-versus-risk ratings for all of the property types increased. At 7.2, the apartment sector earned the highest rating. The industrial sector rating, at 5.7, pulled away from the hotel sector rating of 5.6. The rating for the retail sector increased to 5.3, while the office sector rating remained the lowest, at 4.9, during third quarter.
CCIM members noted that the value-versus-price for commercial real estate increased during third-quarter 2012, with the overall value-versus-price rating increasing to 5.6. Although the overall value of commercial real estate improved only slightly, the value-versus-price ratings also increased for every property sector. The industrial sector rating increased to 5.6, and retained the highest rating among the property sectors. Similarly, while the retail sector’s rating rose to 5.3, the ratings for the office and apartment sectors each increased to 5.2. At 5.1, the hotel sector rating also increased, although the rating remained the lowest compared to the other property types.
Property Values Remain Flat
While commercial real estate seems to be holding its own with respect to income performance, property values remain flat and transaction volume declined in third-quarter 2012.
On a 12-month basis, transaction volume for all property types decreased with the exception of the industrial sector volume, which increased slightly. More specifically:
- Hotel sector volume fell 25 percent.
- Office and retail sectors volume declined approximately 15 percent and 10 percent, respectively.
- Apartment sector volume decreased about 5 percent from the previous quarter.
“Get used to it, as this is the ‘new normal’ for the economy and we should expect this investment environment for the foreseeable future. The low-hanging fruit has been picked, and investors are adapting to the challenges we face. Risk-adjusted returns for commercial real estate are down from what we have seen, but fundamentals are steady and even improving slightly,” added Riggs. “With volume and prices for commercial properties flat or down on average (except for apartments) during third quarter, plus assurance from Bernanke that interest rates will be low until mid-2015, opportunities with reasonable prices may be found in increasing numbers of secondary and tertiary locations.”
Property Sector Highlights
Continuing a positive trend, the national vacancy rate for all property types continued to decline during third quarter 2012. Only the retail sector vacancy rate remained unchanged.
Other property sector highlights gleaned from the survey of CCIM members include:
- The apartment sector remained the safest and best investment compared to the other property types during third-quarter 2012.
- Compared to other property types, distressed and foreclosed office properties sold the best during third-quarter 2012.
- Industrial properties are currently underpriced. Members suggest that investors should buy low, lease at market value and hold. There is not much demand for industrial properties in the East region due to oversupply.
The complete survey findings can be found at http://www.ccim.com/resources/itq-fourth-quarter-2012-rercccim-investment-trends-quarterly
About the Survey Methodology
The analysis provided in the RERC/CCIM Investment Trends Quarterly is conducted by Real Estate Research Corp. (RERC). The information is gathered in raw form from surveys sent to CCIM designees and candidates, and from sales transactions collected from various sources, including CCIM members, various key commercial information exchange organizations (CIEs), the media, assessors’ offices, RERC contacts in the marketplace, and other reliable public and private resources. All sales transactions are aggregated, analyzed, and reported on by RERC. The RERC/CCIM Investment Trends Quarterly report provides timely insight into transaction volume, pricing, and capitalization rates for the core income-producing properties.
About the CCIM Institute
Since 1969, the Chicago-based CCIM Institute has conferred the Certified Commercial Investment Member (CCIM) designation to commercial real estate and allied professionals through an extensive curriculum of 200 classroom hours and professional experiential requirements. The core curriculum addresses financial analysis, market analysis, user decision analysis, investment analysis, and negotiation—the cornerstones of commercial investment real estate.
An affiliate of the National Association of Realtors®, the CCIM Institute also offers powerful technology tools such as the Site To Do Business, an online site analysis and demographics resource, and CCIMREDEX, a single-entry listing and data exchange. Currently, there are nearly 10,000 CCIMs in 1,000 markets in the U.S. and 31 additional countries, with another 6,000 practitioners pursuing the designation, making the institute the governing body of one of the largest commercial real estate networks in the world. Visit www.ccim.com, www.stdbonline.com, and www.ccimredex.com for more information.
CONTACT: Amie DeLuca, +1-630-315-2962, email@example.com
TDI announced today that it has purchased 6.65 acres of prime real estate in Las Colinas for a $50 million residential development. The new development will have 386 apartments in multi-story buildings and will be the closest in walking distance to the recently opened DART Orange line station just across Northwest Highway from the Irving Convention Center. Construction is expected to begin in March 2013.
“This high profile location, which will include a landmark 6 story tower at Northwest Highway and Las Colinas Boulevard, is the ideal setting to create the next generation of multi-family product,” said Brad Taylor, Executive Vice President and Investment Partner for TDI. “These homes will have extraordinary highway access as well as the available DART light rail system that provides easy access to Plano, Richardson and Downtown Dallas, and will reach D/FW airport by 2014.”
The design will feature urban connectivity between the streetscape and community. The clubhouse spills out onto a retail-style urban patio area that interacts with the streets. Brownstone walkup style apartments at street level will interconnect the streets with the community in a seamless manner.
“This design created a community,” said Taylor. “Offering residents access to five serene landscaped courtyards as well as an active courtyard with a resort style pool. The interiors of the apartment homes will include 10 foot ceilings, separate showers in select units and islands in every kitchen.”
“The Las Colinas residential submarket has a 96 percent occupancy rate,” said Taylor. “We will be offering the newest and one of the most unique products in that submarket. More than 100,000 people work in Las Colinas, which is home to the global corporate headquarters of five Fortune 500 companies and regional headquarters for 100 other corporations.”
TDI currently has 1,406 units under construction in Texas, California and Arizona and has asset management responsibilities over 4,900 units nationwide. In addition, TDI has plans to develop an additional 2,320 units over the next 12 months that are in various stages of planning and predevelopment and is currently raising capital to complement their venture platforms in order to fund their expansion and business plan.
The firm offers investment management, pre-development, underwriting, marketing and asset management services as well as construction, financial and administrative services.
CONTACT: David Margulies, +1-214-368-0909