Tag Archives: South Salem Real Estate for Sale

National Home Prices Re-accelerated | South Salem Real Estate

S&P Dow Jones Indices released the Case-Shiller (CS) National Home Price Index for July. The index rose at a seasonally adjusted annual growth rate of 5.0%, faster than the 2.1% in June. House prices have decelerated since the beginning of 2016 due to the sharp decline in existing home sales at the end of 2015. But, home prices started to accelerate in May and home price appreciation increased to 5.0% in July.

The Home Price Index from the Federal Housing Finance Agency (FHFA) rose at a seasonally adjusted annual rate of 5.8% in July, following 3.4% in June, confirming the reacceleration in home prices.


However, local housing markets varied greatly. Figure 2 shows home price appreciation for 20 major U.S. metropolitan areas in July.

Twelve out of the 20 metro areas had positive home price appreciation. The highest one in the list was Portland, OR with an annual rate of 8.2%, followed by Denver with an annual rate of 6.6%. Phoenix placed third with an annual rate of 5.9%.

Home price appreciation in the remaining eight metro areas was negative. They are San Francisco, Washington, DC, Atlanta, Chicago, Boston, Detroit, Minneapolis, and New York. Home price appreciation in Chicago was -5.9%, the lowest among 20 metro areas.



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Mortgage rates at 3.47% | South Salem Real Estate

Oct 13, 2016) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates following Treasury yields and moving higher.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.47 percent with an average 0.6 point for the week ending October 13, 2016, up from last week when they averaged 3.42 percent. A year ago at this time, the 30-year FRM averaged 3.82 percent.
  • 15-year FRM this week averaged 2.76 percent with an average 0.6 point, up from last week when they averaged 2.72 percent. A year ago at this time, the 15-year FRM averaged 3.03 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week with an average 0.4 point, up from last week when it averaged 2.80 percent. A year ago, the 5-year ARM averaged 2.88 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Attributed to Sean Becketti, chief economist, Freddie Mac.

“This week the 10-year Treasury yield continued its climb as an increasing number of financial market participants foresee a December rate hike after a series of positive economic data releases. The 30-year fixed-rate mortgage moved up 5 basis points to 3.47 percent in this week’s survey, the first increase in one month. Even though we’ve seen economic activity pick up, consumer price inflation and implied inflation expectations remain below the Federal Reserve’s 2 percent target.”

Manhattan sales down 20% | South Salem Real Estate

There are a lot more apartments available for purchase these days in Manhattan. And fewer people are buying.

Sales of previously owned condominiums and co-ops fell 20 percent in the third quarter from a year earlier as potential buyers grew cautious amid more choices, according to a report Tuesday from appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. There were 5,290 resale apartments on the market at the end of September, 53 percent more than the number available in late 2013, the lowest point for listings.

The swelling inventory is providing an opportunity to New Yorkers shut out of a market in which construction has been dominated by ultra-luxury condos aimed at the wealthiest buyers. Resales, particularly those priced at less than $1 million, were in chronically short supply in recent years, and those that made it to the market sparked bidding wars. Now, more owners are listing apartments to profit from climbing values, and they’re finding lots of company.

“Rapidly rising prices over the years have pulled more sellers into the market hoping to cash out,” Jonathan Miller, president of Miller Samuel, said in an interview. “But buyers are more wary. There isn’t the same intensity of activity to burn through the new supply.”

Buyers agreed to pay more than the asking price in just 17 percent of all condo and co-op deals that closed in the third quarter, down from a record 31 percent a year earlier, according to Miller Samuel and Douglas Elliman. Consumers also are taking longer to make a decision. Previously owned properties that sold in the period spent an average of 72 days on the market, up from 67 days a year ago.

The median price of all resales in the quarter climbed 2.6 percent to $950,000, Miller Samuel and Douglas Elliman said. That’s a step down in a three-year period in which annual price growth once reached 18 percent. Many sellers have yet to accept that they can no longer name any price, and the disconnect between their expectations and what buyers are willing to pay is contributing to the drop in overall sales, Miller said.

“We’re clearly seeing a slowdown,” Miller said. “This era of aspirational pricing is coming to an end. Buyers get the message first.”

For a Bloomberg Intelligence piece on New York apartment rents, click here.

Quick Sale

When Connie Lam wanted to sell her Chelsea studio, she knew that curbing her exuberance would help her sell it fast. Lam, who bought the the 441-square-foot (41-square-meter) unit in 2013 for $555,000, listed it for sale in June, just one month before a planned move to California. Working with Douglas Elliman broker Rachel Altschuler, Lam priced her apartment at $625,000 after seeing that another studio of the same size on her floor was already on the market for $650,000.

“There were people who were interested immediately,” said Lam, 28, an attorney now living in Redwood City. “My goal was to get out and have a buyer who was really solid and wasn’t going to back out on me at the last second.”

The listing drew three offers, and was under contract at the asking price within two weeks. The deal closed in August, while the other apartment on her floor, on the market since May, is still without a buyer. Its price has since been cut to $635,000.


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Homeowners doing much better than #renters | South Salem Real Estate

Lee Semel: Flickr/Creative Commons

How has the housing market changed since the recession? A new report by Apartment List paints a less-than-positive picture for renters. In the aftermath of the mortgage crisis, many of the costs of homeownership have gone done, even as homeownership rates reach record lows. At the same time, costs associated with renting have risen at a time when more and more Americans are renting apartments and single-family homes.

While homeownership rates have reached historic lows across the country, hitting numbers not seen since the ‘60s, three particular areas and demographics have seen the biggest loss. According to the Apartment List analysis of Census data,  the recent downturn really hit those living in Sunbelt Cities (Las Vegas, Orlando, Atlanta), Americans under 45 years of age, and Hispanic and African-American consumers.

In fact, minorities experienced the largest drops in homeownership: Hispanics (-4.0%), African Americans (-5.5%), and other minorities (-6.7%). Non-Hispanic whites were somewhat less affected, with a homeownership decline of -3.3%.

Homeownership by ethnicicy

While a drop in the national homeownership rate has serious implications for long-term financial health, those who do own are often reaping the benefits of lower costs, especially compared to renters. Historically low interest rates mean monthly payments have dropped 13% since 2007. That can really add up: the median monthly mortgage payment is $2,754, but widespread refinancing has cut that to $2,263, a savings of roughly $6,000 a year. With median household income at $54,000 in 2014, that extra money can provide a significant boost.

The story is much different for renters. Rents have increased an average of 3.7% nationwide, exacerbating differences between owners and renters. For instance, in Houston, homeownership costs have dropped $289 since the Recession, while the cost to rent has risen by $115.

Rental price comparison US

The median national rent increased from $901 to $934. While $33 may seem small, held up against a steep 14% drop in inflation-adjusted income for renters, and it becomes much more significant.

Like many aspects of the U.S. economy in the last decade, the stratification of the housing market may only increase inequality. Those with the money to buy are reaping the advantages of historically low costs, while those who can’t, especially Millennials and minorities, are being locked out and missing out on a chance to build household wealth.

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Case Shiller: Home Prices Rise 5.1% | South Salem Real Estate

Home prices in 20 major U.S. metro areas rose 0.8% in June from the month prior on a non-seasonally-adjusted basis, according to the S&P/Case-Shiller home price index. From the same period a year prior, prices saw a 5.1% increase, below the expectations for a 5.2% rise

Sales of new homes up | South Salem Real Estate

Sales of new single-family houses in the United States surged 12.4 percent to a seasonally adjusted annual rate of 654,000 in July of 2016. It is the highest figure since October of 2007 and much better than market expectations of 580,000. Figures for June were revised down by 10,000 to 582,000. New Home Sales in the United States averaged 652.45 Thousand from 1963 until 2016, reaching an all time high of 1389 Thousand in July of 2005 and a record low of 270 Thousand in February of 2011. New Home Sales in the United States is reported by the U.S. Census Bureau.

United States New Home Sales


The D.C. real estate market | South Salem Real Estate

D.C. experienced considerable growth in 2013 and 2014, surpassing national averages. But in 2015 and the first half of this year, most major indicators — including averages sales price, median days on the market and sales to list price ratio — slowed to a pace only slightly ahead the national market as a whole, according to data from Rockville-based multiple-listing service MRIS.

Here’s a snapshot of how the D.C. market performed in the first half of the year:

Average sales price 

On the whole, the average sales price — the average price at which a property sells — of all homes of any type in Washington are up 1.44 percent year to date in 2016 — $646,640 this year compared to $637,452 last year. This is certainly well above the median sales price of a home nationally, which hovers just below $250,000.

In particular, the highest average sales prices year to date in the District are in Zip codes 20007, primarily for Georgetown and Burleith ($1,067,347); 20016 for Cathedral Heights and American University Park ($1,042,904); and 20015 for the area around Friendship Heights and Chevy Chase ($1,017,269).

However, the biggest gainers in average sales price are a mixture of high-priced neighborhoods with developing areas outside the city center. The largest gainer in average sales price through the end of June was American University Park and Cathedral Heights, rising 19.9 percent to $1,042,904 in 2016 from $870,046 in 2015.

Notable growth also occurred in the far reaches of Southeast and Northeast Washington. The second- and third-biggest gainers in average sales price so far in 2016 have been seen around Zip codes 20020 for Anacostia and Hillcrest (up 17.7 percent to $292,159) as well as in 20019 for Deanwood and Benning Heights (up 17.3 percent to $256,417).

Median days on market 

Unlike other leading indicators, median days on the market — the number of days it takes a property to go from active on the market to under contract — is measured in how it shrinks not grows. A low number of days on market often corresponds to a higher sales price and vice versa. For the District, the average days on market as a whole are 39 days for 2016, down one day from 2015.


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Single-family housing starts slows | South Salem Real Estate

The May pace of single-family housing starts was effectively flat relative to April after downward revisions for prior months, standing at a seasonally adjusted annual rate of 764,000. However, according to estimates from the Census Bureau and the Department of Housing and Urban Development, the May rate marks a 10% gain in the pace of single-family construction on a year-over-year basis.

Yesterday’s increase in the NAHB/Wells Fargo Housing Market Index suggests the industry will expand single-family home construction in the months ahead.


On a three-month moving average basis, single-family starts ticked down due to the elevated construction pace recorded in February. While NAHB expects growth in single-family construction due to favorable demographics, lot supplies are a growing challenge holding back production, particularly in markets in the West and Northeast.

Multifamily starts (2+ unit production) came in at a 400,000 pace on a seasonally adjusted annual basis, showing surprising strength and up 8% on a year-over-year basis. However, the pace of multifamily permits is down almost 28% on year-over-year basis as of May. This is consistent with the NAHB forecast, which shows a smaller total of multifamily starts for this year compared to 2015.

Regionally, expansion has been particularly strong in the South, where single-family starts for April are 17% higher than a year ago. On a non-seasonally adjusted basis, 55% of single-family starts for the month were located in the South.

There has been some weakening in the West, where single-family starts are down almost 5% on a year-over-year basis. Access to lots is a key concern. The Midwest showed a monthly drop of 15%, but on a year-over-year basis single-family start are 8% higher. Single-family construction is up almost 13% in the Northeast.

units under production

Taking the long view, an examination of the count of homes currently under construction provides the degree of market mix and momentum of the recovery in home construction. As of May, 56% of units under construction in the nation were multifamily (574,000), a 16% gain in the total from a year earlier.


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Dearth of homes for sale in So California | South Salem Real Estate

Packed open houses. Bidding wars. Rising prices.

That’s the landscape for much of the Southern California housing market as the spring selling season gets underway. Competition is as fierce, or even greater, than last year in many corners of the Southland, and would-be buyers can expect a pitched battle if they want to close a deal, real estate agents say.

The frenzied start has been driven by a dearth of homes for sale, low mortgage rates and steady job growth. Homes are selling faster than a year earlier, with more of them going for above the list price, data from online brokerage Redfin show.

“Be ready to write the offer on the Realtor’s car,” mortgage broker Jeff Lazerson said.

Another sign of the market’s strength came this month when data provider CoreLogic reported that sales in February jumped 9% from a year earlier. The median price, meanwhile, climbed 3.7% — the 47th straight month it’s risen.

Lazerson said his clients in Los Angeles and Orange counties are putting an average of five offers on a house before they’re successful. And he’s seeing more demand from first-time home buyers, as well as those who want to upgrade to a bigger home.

“The market seems to be healthy again on all levels,” he said.

Real estate agent Heather Presha has seen the craziness firsthand.

With few homes for sale in the Leimert Park neighborhood where she works, buyers are flooding open houses that pop up. Many are coming from the Westside, no longer able to afford a home near the ocean as prices have steadily risen across the region.

The added demand is pushing values higher in the South L.A. neighborhood filled with old Spanish-style homes.

Pat Douglas, another agent in Leimert Park, put it this way: “Anything good that is on the market is going quick with multiple offers.”

In Los Angeles County, there was a 4.9-month supply of homes for sale in February compared with a 5.2-month supply a year earlier — meaning no homes would be on the market after that time period if sales continued at their current pace and no new listings emerged, according to the California Assn. of Realtors. Orange County saw a similar trend.

The Realtors consider a six- to seven-month supply a market that favors neither buyers nor sellers.

“The inventory issue is why price growth is strong,” said Redfin chief economist Nela Richardson.

Recently there’s been a healthy jump in listings, Richardson said, but it’s unclear if the trend will hold.

If it does, house hunters such as Abigail Lee and her husband, Ray, would be overjoyed.

The couple are looking for a home under $2 million, but they’ve found little suitable near a good public school. They’ve put in only two offers in the roughly six months they’ve been looking — and were unsuccessful both times.


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Leading Marks Index Points to Slow and Steady Housing Recovery | South Salem Real Estate

The economic and housing recovery continues at a slow, but steady pace. For the country as a whole, theNAHB/First American Leading Markets Index (LMI), released today, rose to .94 in the fourth quarter of 2015, .01 point higher than its level in the third quarter of 2015, .93, and .04 point higher than its level from one year ago, .90. The index uses single-family housing permits*, employment, and home prices to measure proximity to a normal economic and housing market. The index is calculated for both the entire country and for 337 local markets, metropolitan statistical areas (MSAs). A value of 1.0 means the market (or country) is back to the last level of normality.

Nationally, all three components of the LMI contributed to the 4-quarter growth in the nationwide score, .04 point to .94, but only house prices and permits contributed to the quarter-over-quarter increase, .01 point, as the employment component of the LMI was unchanged over the last 3 months. Over the year, the house prices component increased from 1.32 to 1.38, 1.37 to 1.38 over the quarter, the permits portion rose from .44 to .48, .47 to .48 over the quarter, and employment rose from .95 to .96, remaining unchanged over the quarter. Regionally, 117 of the 337 markets, 35%, have an LMI Score that is greater than or equal to 1.0 and are considered normal.


While most markets do not have an Overall LMI Score that is greater than or equal to 1.0, a recovery in one or more components of the LMI has taken place in MSAs across the country. At 322, the number of MSAs where house prices have reached normal is the highest of any of the LMI components, however that level has been unchanged over the year. In contrast, the recovery in employment and in permits is smaller but spreading, with the expansion in employment further along. The number of MSAs whose employment component has recovered reached 76 in the fourth quarter of 2015, 11 more than its level in the third quarter and a 73% increase from its level from one year ago, an additional 32 markets. Meanwhile, the number of MSAs whose permits score reached or exceeded 1.0 totaled 41, 8 more than the previous quarter and 17 more than 1 year ago


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