NEW RESIDENTIAL SALES IN APRIL 2011
Sales of new one-family houses in April 2011 were at a
seasonally adjusted annual rate of 323,000, according to estimates released
jointly today by the U.S. Census Bureau and the Department of Housing and Urban
Development.
This is 7.3 percent (±16.6%)* above the revised March
rate of 301,000, but is 23.1 percent (±9.7%) below the April 2010 estimate of
420,000.
The median sales price of new houses sold in April
2011 was $217,900; the average sales price was $268,900. The seasonally
adjusted estimate of new houses for sale at the end of April was 175,000. This
represents a supply of 6.5 months at the current sales rate
Home Sales Forecast to Grow
By Kevin Chiu
Home sales, the bread and butter of the U.S. real estate market are
forecast to grow by 125,000 to 200,000 additional residential units by the end
of 2011 over last year. The increase, projected by Housing Predictor is due to
near record low mortgage rates and the lowest home prices in many regions of
the country in 20 years. 
Despite the decline in home sales in April reported by the
National Association of Realtors, cash purchases make up nearly 1 out of 3
transactions, acting to strengthen a marketplace hampered by high unemployment
and weak consumer sentiment. Home sales are forecast to reach more than 5.12
million units in 2011.
The growth of investors purchasing more residential rentals is
projected to contribute to the majority of additional home sales.
Sales are also projected to rise further in 2012 on lower home
prices in the majority of markets. Investors, concerned about economic
conditions and a lack of oversight by government regulators in U.S. financial
markets are pulling their money out of stocks, bonds and other Wall Street
investments to purchase real estate.
The government backed home buyer tax credit expired last
summer, ending a temporary sugar high for the market that failed to provide any
long term sustainable gains. Weak economic growth, unemployment that tops the
national rate of 9% in many areas of the country and underemployment accounts
for about 18 million Americans out of work or not bringing home enough income,
according to government estimates.
However, the spring and summer seasons are usually the most
active time of the year for home sales as the weather in the U.S. warms and
schools let children out for summer vacation. Most families try to select a new
home and move before the next school season begins in the fall.
Overall growth in home sales is dependent on two factors, employment
and improving consumer confidence in the housing market. Declining home prices
are caused by the record volume of foreclosures, which are projected to last
several more years. The continuing fall in values weakens consumer confidence
and stops many people from making new purchases since most buyers have to first
sell their homes before purchasing another.
A major change is developing in the U.S. housing market as many
homeowners being foreclosed move into rental homes, triggering an increase in
needed rentals and rents in many markets to rise. Major (REITs) Real Estate
Investment Trusts publicly owned by investors and companies managing large
apartment buildings have been building more units in preparation for the shift
with about half of all renters living in apartments across the nation.
Published May 23, 2011
Source: http://www.housingpredictor.com/2011/home-sales.html
Home Sales Heat Up as Spring Buying Season Melts Away Frigid Winter Market
CHESTER, Pa., March 17, 2011 /PRNewswire/ -- Spring is traditionally
the hottest season for home sales as families look to move between school
terms, people have received their tax refunds, and the warmer weather makes
moving easier. Sales tend to peak in April staying strong through June and July
with over half of America's
moves taking place in the summer.
Source: http://finance.yahoo.com/news/Home-Sales-Heat-Up-as-Spring-prnews-3031162099.html?x=0&.v=1
It's
real estate season -- or is it?
By Steve McLinden • Bankrate.comMany buyers apply their income tax refunds toward down
payments, adding to the spring push.
While the buying frenzy stays steady through most of the summer, it falls in
early fall, Harris says. It usually drags for a month or so, then escalates
briefly again around October. Some of that second spike is attributed to
sellers who were overly optimistic pricers in the spring, but who have grudgingly
decided to make concessions in the fall, he added.
Buyers and sellers should also note that an estimated 60
percent of all moves in America
take place in summer, so book as early as possible, especially if you have a
clear closing date. Many movers advise that home buyers/sellers call for an
estimate at least 60 days in advance of a move.
Knowing the motivation of the seller can be very important
in the sales process, says Realtor Susan Marthens of Windermere Services Co. in
Portland, Ore.
"If they're transferring, they'll want to get it out on the market
quickly," she says. "That's something people can't always control.
Sometimes they'll have to negotiate accordingly."
She adds: "But if a particular time of year isn't important to the seller
... then I always tell them, 'Right around spring.'"
Source: http://www.bankrate.com/brm/news/real-estate/buying-season.asp
This Spring and Summer is going to
be a “Hot” buyer market!
“If You Snooze You Lose”
See what the Wall Street Journal Said.
Buyers ready to
snatch bargains this spring
WASHINGTON – March 23, 2011 – Bargain prices on housing combined with
low interest rates below 5 percent may bring the real estate market its busiest
spring season in years, economists say.
Distressed sales continue to put downward pressure
on home prices, which may lure more buyers off the fence and ready to snag a
deal during the typical prime-time buying season.
Some builders are ramping up discounts on new
homes as well as boosting commissions to brokers to try to spark more
transactions.
Sellers of existing-homes also are getting more
competitive in pricing their homes.
“After three years of the housing downturn, people
are becoming much more realistic in terms of valuing their homes,” says
Lawrence Yun, chief economist at the National Association of Realtors®.
An improved job market with better income
potential may also motivate more people to buy, says David Berson of the PMI
Group. “Household formations are also very important,” Berson says. “Kids may
have moved back in with their parents, or two people may have moved in together
because of job concerns. Now they can move into their own place.”
While interest rates are sitting comfortably below
5 percent for now (30-year fixed rates averaged 4.76 percent last week),
economists warn the attractive low rates won’t last long.
“Few think mortgage rates are going lower,” says
Mark Zandi, Moody’s Analytics chief economist. “It’s more likely they will be 6
percent than 4 percent next spring. This lights a fire under buyers.”
Source: “Discounts expected in spring housing
market,” The Wall Street Journal (March 22, 2011)
The Best Time to Buy Almost Everything
Thursday, 7th January 2010 (by April
Dykman)
My mom has a sixth sense when it comes to bargain hunting. Where I’m
thrilled to get 25 percent off and free shipping, she’s finding deals of 70
percent off and getting inside scoop from the salespeople, who probably have
her on speed dial should a ginormous everything-must-go-or-we-torch-it
clearance sale come along.
Okay, so I’m exaggerating, but not by much. The point, however, is that the
key to finding bargains is timing—off-season, end-of-season, new models
bringing down prices on the old models. There’s a pattern and a perfect time to
buy just about anything.
When possible, plan your purchases by using the following list to score the
best deals and to keep more of your money in your high
interest savings account:
House and home
- Real estate—March
through August are active months for buying and selling, so a buyer
looking for a deal will have better luck negotiating on an offer in autumn
and winter.
For rest of article, see this issue of in
focus.