Slowing Fourth Quarter Sales Did Not Derail Record 2021 Housing Market | Mt Kisco Real Estate

WHITE PLAINS—Residential sales in 2021 in the counties served by OneKey MLS, Inc. reached a historic peak. This, despite a slowing of sales in the fourth quarter in all areas served by OneKey MLS with the exception of Bronx County.

Arguably, some of the slowdown can be attributed to the dearth of inventory in the counties north of New York City, while the “Bronx Tale” is more closely aligned to a return of buyers to the New York City market.

While the view of the market in terms of units sold and dollar volume is a positive one, it was a frustrating arena for many buyers who lost homes to higher bidders and for the practitioners dealing with client frustration and disappointment.

Bronx County had the largest percentage increase in residential sales at 61.4% year-over-year with 2,553 units sold as compared to 1,582 sales for 2020. Total residential sales in the counties to the north were more in line with each other with Rockland County leading the group with an increase of 19.3% (3,631 units compared to 3,044 units in 2020); Westchester, a close second at 19.1% (11,855 units compared to 9,955 units for 2020); followed by Orange County with a 16% increase (5,406 residential sales compared to 4,662 sales in 2020); Putnam experienced a 10.6% increase over 2020 (1,605 units compared to 1,451) and Sullivan County had a 9.6% increase for 2021 (1,393 compared to 1,271 in 2020).

Sales of single-family residential units increased across the board with Bronx County sales increasing an eye-opening 45.8% (716 units vs. 491 units for 2020). The median price of a single-family residence in Bronx County increased 8.5% to $575,000. The largest percentage price increase for a single-family home occurred in Sullivan County with a 25.3% increase to $244,400 from $195,000 in 2020. Notably, Westchester County, with the highest prices in the region, had the smallest percentage increase in median price for the year at 6.1% ($780,000 as compared to $735,000 in 2020) and actually experienced a slight decrease (-0.8%) in median price for the fourth quarter. This may be indicative of price increases beginning to moderate.

Orange County has seen consistent increases in the single-family median price with a year-over-year increase of 16.5% ($367,000 compared to $315,000 in 2020). Orange County single-family home sales increased by 11.2 % for the year to 4,444 units (compared to 3,996 in 2020) despite a drop of 20.7% in the fourth quarter.

In Rockland County the single-family median sale price increased 12% to $560,000 (from $500,00 in 2020) and Putnam County saw its single-family median price rise 15.8% to $440,000 (from $380,000 in 2020).

In terms of percentages, condominium, multi-family (2-4 family), and in Westchester County, co-op sales as well, all outpaced the increases in single-family units and, in most instances, the percent of median price increase. In Westchester County, where co-op sales lagged in 2020, they increased 36.3% to 2,129 units (from 1,562 in 2020). Affordability is the most prevalent reason for these choices particularly in view of the price increases in single-family dwellings. For many suburban purchasers, condos and co-ops represent a means to build equity to purchase a single-family residence.

When focusing solely on the fourth quarter residential sales numbers, they reflect a return to the more typical seasonality in the market, which disappeared in the fourth quarter of 2021. While there were significant decreases in the number of residential sales in all counties, except the Bronx, when comparing the 2021 fourth quarter to the 2020 fourth quarter sales, it is important to remember that the fourth quarter 2020 sales were fueled by a surge in buying activity in the second half of 2020 once COVID-19 restrictions were lifted. A more realistic comparison would be to the fourth quarters of 2019 and 2018, and the 2021 fourth quarter residential sales numbers were significantly higher than either of those two years.

Indicators such as days on market were down significantly in all market areas. Homes selling close to or at list price and above list price were a relatively common event. Lack of inventory continues to be a problem with no meaningful resolution on the near horizon. With the Fed tightening monetary policy it is expected that mortgage rates will begin a steady rise in 2022. However, despite these headwinds, the real estate market in the New York City and greater suburban area, including the lower Hudson Valley, have shown remarkable resiliency in the last year and a half, and we expect a strong real estate market to continue into 2022.

With the exception of the second quarter of 2020, the real estate market has been an anomaly outperforming the economy. Sales and prices have enjoyed a trajectory which is likely unsustainable going forward, however the economy of the Hudson Valley continues to improve and grow more vibrant, which bodes well for real estate. It is likely that price increases will moderate and additional product will come on the market, which will sustain a strong market in the near term.

HGAR/OneKey® MLS 2021 Fourth Quarter Residential Real Estate Sales Report

Data provided by OneKey MLS, one of the largest Realtor subscriber-based MLS’s in the country, dedicated to servicing more than 46,310 real estate professionals that serve Manhattan, Westchester, Putnam, Rockland, Orange, Sullivan, Nassau, Suffolk, Queens, Brooklyn, and the Bronx. OneKey MLS was formed in 2018, following the merger of the Hudson Gateway Multiple Listing Service and the Multiple Listing Service of Long Island.

realestateindepth.com/news/

Mortgage rates hit 9-month high | South Salem Real Estate

  • The average rate on the 30-year fixed mortgage hit 3.33% last week and is now about half a percentage point higher than a year ago.
  • Applications to refinance a home loan fell 2% last week compared with two weeks ago and were 40% lower year over year.
  • Applications for mortgages to purchase homes fell 4% from two weeks earlier and were 12% lower year over year

The economic damage from the omicron variant of the coronavirus is now expected to be less than initially thought, and that has interest rates back on their upward trajectory yet again. As a result, mortgage demand fell 2.7% to end 2021, compared with two weeks before, according to the Mortgage Bankers Association’s seasonally adjusted index. [The MBA did not release application volume last week due to the holidays.]

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.33% at the end of last week from 3.27% two weeks before, with points rising to 0.48 from 0.38 (including the origination fee) for loans with a 20% down payment. That rate was 47 basis points lower the same week one year ago.

As a result, applications to refinance a home loan fell 2% last week compared with two weeks ago and were 40% lower year over year. The refinance share of mortgage activity, however, increased to 65.4% of total applications from 63.9% the previous week, due to continued weakness in the purchase loan market.

“Mortgage rates continued to creep higher over the past two weeks, as markets maintained an optimistic view of the economy,” said Joel Kan, an MBA economist. “Refinance demand continues to dwindle, as many borrowers refinanced in 2020, and in early 2021.”

Rates continued to climb at the start of this week, rising sharply Tuesday to the highest level since early April of last year, according to Mortgage News Daily, which calculates daily rates as opposed to weekly averages.

Applications for mortgages to purchase homes fell 4% from two weeks earlier and were 12% lower year over year. That was the weakest showing since October 2021. Home sales began pulling back in November, but more because of low inventory than high interest rates. Home prices also continue to gain compared with 2020, up just over 18% in November, according to CoreLogic.

“Despite supply and affordability challenges, 2021 was a record year for purchase originations,” said Kan. “MBA expects 2022 to be even stronger, with total purchase activity reaching $1.74 trillion.”

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cnbc.com/2022/01/05

Home affordability plummeted in fourth quarter | Waccabuc Real Estate

Homeownership continues to swerve into unaffordable territory, with median-priced single-family homes becoming less affordable in three-quarters of the nation’s market, a report published by ATTOM Data Solutions last week said.

Per the report, between October to December 2021, median home prices in 440 of the 575 counties analyzed by the data vendor saw notable home-price growth. As a result, 77% of counties included in the report have now been labeled as less affordable by ATTOM, up from 39% of counties in the fourth quarter of 2020.

The data vendor also noted that in the third quarter of 2021, 428 counties from the same data set were labeled as less affordable, up from 224 counties in the fourth quarter of 2020.

On average, the median national home price grew by 17% over the past year to $317,500, according to the report.

Todd Teta, chief product officer at ATTOM, said in a statement that the financial comfort zone for homebuyers continues to shrink as home prices rise and mortgage rates tick upwards.

 “Historically low rates and rising wages are still big reasons why workers can meet or come very close to standard lending benchmarks in a majority of counties we analyze,” Teta said. “ But the portion of wages required for major ownership expenses nationwide is getting closer to levels where banks become less likely to offer home loans.”

ATTOM found that ownership costs have risen in the fourth quarter of 2021, with the typical home consuming 25.2% of the average national wage of $65,546. In comparison, the fourth quarter of 2020 saw ownership costs at 21.5%.

However, ATTOM noted that the latest level is still within the 28% standard lenders prefer for how much homeowners should spend on mortgage payments, home insurance and property taxes.

The report added that house hunters unscathed financially by the pandemic have buoyed housing costs, as they “surged into the market amid a combination of mortgage rates hovering around 3 percent and a desire to trade congested virus-prone areas for the perceived safety of a house and yard, as well as the space for growing work-at-home lifestyles.”

“Amid very uncertain times, with the pandemic again threatening the economy, we will keep watching this key measure of housing market stability,” Teta concluded.

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housingwire.com/articles/

NY Among Top States Residents Are Fleeing From | Cross River Real Estate

The Pandemic Continued to Influence Americans’ Decisions to Move as They Relocated to Lower-Density Areas and Desired to be Closer to Family

Interactive Map: To understand inbound and outbound percentages for each state, use the legend. To view reasons for moving and demographic data, select the year and state that you would like to view using the dropdown menus. (If you are using a desktop computer, you can use your mouse to click and select a state.) Please note that percentages pertaining to demographic data may not always total 100% due to respondents having the ability to opt out of answering survey questions and/or to select more than one survey response per question.

United Van Lines released the company’s 45th Annual National Movers Study today, which indicates Americans were on the move to lower-density areas and to be closer to their families throughout last year.

The annual study, which tracks the company’s exclusive data for customers’ state-to-state migration patterns, determined Vermont as the state with the highest percentage of inbound migration (74%) with United Van Lines. Topping the list of outbound locations was New Jersey (71%), which has held the spot for the past four years.

South Dakota (69%), South Carolina (63%), West Virginia (63%) and Florida (62%) were also revealed as the top inbound states for 2021. Meanwhile, states like Illinois (67%), New York (63%), Connecticut (60%) and California (59%), which have regularly appeared on the top outbound list in recent years, again ranked among states with the largest exoduses.

In addition to the state-by-state data, each year United Van Lines also conducts an accompanying survey to examine the motivations and influences for Americans’ interstate moves. This year’s survey results indicated 31.8% of Americans who moved did so in order to be closer to family – a new trend coming out of the pandemic as priorities and lifestyle choices shift. Additionally, 32.5% of Americans moved for a new job or job transfer, a significant decrease from 2015, when more than 60% of Americans cited a job or transfer.

“This new data from United Van Lines is indicative of COVID-19’s impact on domestic migration patterns, with 2021 bringing an acceleration of moves to smaller, midsized towns and cities,” Michael A. Stoll, economist and professor in the Department of Public Policy at the University of California, Los Angeles, said. “We’re seeing this not only occur because of Americans’ desire to leave high density areas due to risk of infection, but also due to the transformation of how we’re able to work, with more flexibility to work remote.”

What’s more, amid the pandemic, many Gen Xers are retiring (often at a younger age than past generations), joining the Baby Boomer generation. While many are retiring to states like Florida, United Van Lines’ data reveals they’re not necessarily heading to heavily populated cities like Orlando and Miami — they’re venturing to less dense places like Punta Gorda (81% inbound), Sarasota (79% inbound) and Fort Myers-Cape Coral (77% inbound). Similarly, in Oregon, cities including Medford-Ashland (83%) and Eugene-Springfield (79%) saw high inbound migration in 2021.

“For 45 years now, our annual United Van Lines study, with its data-driven insights, has allowed us to explore a deeper understanding of Americans’ overall migration patterns,” Eily Cummings, director of corporate communications at United Van Lines, said. “As the pandemic continues to impact our day-to-day, we’re seeing that lifestyle changes — including the increased ability to work from home — and wanting to be closer to family are key factors in why Americans are moving today.”

Moving In

The top inbound states of 2021 were:

  1. Vermont
  2. South Dakota
  3. South Carolina
  4. West Virginia
  5. Florida
  6. Alabama
  7. Tennessee
  8. Oregon
  9. Idaho
  10. Rhode Island

Of the top ten inbound states, six — Vermont, South Dakota, West Virginia, Alabama, Oregon and Idaho — are among the 20 least densely populated states in America, with less than 100 people per square mile. And, Tennessee and South Carolina are among the top 25.

Moving Out

The top outbound states for 2021 were:

  1. New Jersey
  2. Illinois
  3. New York
  4. Connecticut
  5. California
  6. Michigan
  7. Massachusetts
  8. Louisiana
  9. Ohio
  10. Nebraska

Balanced

Several states saw nearly the same number of residents moving inbound as outbound.

Kentucky and Wyoming are among these “balanced states.”

Since 1977, United Van Lines annually tracks migration patterns on a state-by-state basis. The 2021 study is based on household moves handled by United within the 48 contiguous states and Washington, D.C. and ranks states based off the inbound and outbound percentages of total moves in each state. United classifies states as “high inbound” if 55 percent or more of the moves are going into a state, “high outbound” if 55 percent or more moves were coming out of a state or “balanced” if the difference between inbound and outbound is negligible.

To access the study details and creative assets, use the link to the press kit at the top or bottom of the page.

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unitedvanlines.com/newsroom/

New home sales drop 14% | Katonah Real Estate

New single-family home sales rose in November as housing demand was supported by low interest rates and strong consumer demand, despite the ongoing building materials challenges impacting the housing industry.

The U.S. Department of Housing and Urban Development and the U.S. Census Bureau estimated sales of newly built, single-family homes in November at a 744,000 seasonally adjusted annual pace, a 12.4% gain over downwardly revised October rate of 662,000 and is 14.0% below the November 2020 estimate of 865,000.

The gains for new home sales are consistent with the NAHB/Wells Fargo HMI, which edged up to 84 in December, demonstrating that housing is a leading sector for the economy.

Sales-adjusted inventory levels are at a balanced 6.5 months’ supply in November. The count of completed, ready-to-occupy new homes is just 40,000 homes nationwide. Median sales price continues to increase in November at $416,900. This is up 18.8% compared to the November 2020 median sales price of $350,800.

Moreover, sales are increasingly coming from homes that have not started construction, with that count up 75.4% year-over-year, not seasonally adjusted (NSA). These measures point to continued gains for single-family construction ahead.

Regionally on a year-to-date basis, new home sales declined in all four regions; 1.3% in the Northeast, 4.5% in the South, 5.3% in the Midwest, and 12.5% in the West.

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eyeonhousing.org

Gov. Hochul Signs Bill Package to Combat Housing Discrimination | Bedford Hills Real Estate

New York Gov. Kathy Hochul signed a package of nine bills geared to addressing bias and discrimination in the real estate industry in New York State.

ALBANY—New York Gov. Kathy Hochul signed a legislative package on Dec. 21 totaling nine bills geared at combating housing discrimination and addressing issues raised in a Newsday expose entitled “Long Island Divided.”

The centerpiece of the legislation is the Anti-Discrimination in Housing Fund that will permit the state to conduct fair housing testing. Other initiatives included in the bills signed into law range from increasing training and raising the maximum fines for misconduct by real estate brokers and salespersons, to emphasizing that all state and local agencies that administer state housing programs have an obligation to “affirmatively further fair housing.” These new bills, spearheaded by Senate Housing Committee Chair Brian Kavanagh and Assembly Housing Committee Chair Steven Cymbrowitz, will ensure the real estate workforce is well versed in fair housing practices and that the new fund is sufficiently resourced to carry out its intended purpose, New York State officials said.

The Newsday expose published in November 2019 was the culmination of a three-year investigation that uncovered widespread evidence of unequal treatment by real estate agents on Long Island and both explicit and implicit bias that exists in the real estate industry. The expose led to State Senate hearings and some disciplinary actions taken against some of the agents identified in the series.

“For too long, the dream of owning a home has been out of reach for too many New Yorkers because of discrimination and bigotry,” said Gov. Hochul. “When intrepid investigative journalists uncovered housing discrimination in New York, we took action to end this unacceptable practice. I’m proud to sign strong new laws expanding access to fair housing and allowing more New Yorkers to achieve the American dream of owning their homes.”

In a prepared statement, the New York State Association of Realtors stated in response to the housing discrimination bills signed into law: “The New York State Association of Realtors, Inc. (NYSAR) was proud to have worked with state lawmakers over the last two years to strengthen fair housing laws in New York State. We commend Governor Hochul and the State Legislature for their actions and their willingness to work with Realtors and other industry partners toward reasonable solutions that enhance fair housing education for all real estate licensees and increase penalties for bad actors who violate the law. There is no place for illegal discrimination, whether it be in housing or elsewhere. The New York State Association of Realtors Inc. is committed to educating our members about these new laws and regulations and will promote strict compliance.”

NYSAR also noted, “Realtors have a long history of opposing illegal housing discrimination and have consistently sought constructive fair housing solutions. We look forward to continuing to work with Governor Hochul and state lawmakers on additional fair housing initiatives to the benefit of all residents of New York State.”

The following is a rundown of the new housing discrimination legislation signed into law by the governor.

Creation of the Anti-Discrimination in Housing Fund

 Legislation (S.945-B/A.6866) establishes an Anti-Discrimination in Housing Fund, a portion of which will be supported by fines collected for violations of anti-discrimination sections of the real property law. This bill increases the fine ceiling from $1,000 to $2,000 and then diverts 50% of the revenue from these fines to the Anti-Discrimination in Housing Fund. This fund will be available to the Office of the Attorney General for fair housing testing which will allocate grants to various government and non-governmental entities specializing in anti-housing discrimination.

Increasing Fines and Adding a Surcharge to Licensing Fees

Legislation (S.2133-A/A.5363) adds a surcharge to licensing and re-licensing fees for real estate brokers and salespersons to be used for statewide fair housing efforts. The surcharge, an additional $30 for brokers and an additional $10 for salespersons, will be deposited into the Anti-Discrimination in Housing Fund for fair housing testing efforts.

State Senator James Skoufis said, “Following Newsday‘s 2019 exposé on housing discrimination, my colleagues and I opened a year-long investigation into predatory practices in real estate. We held multiple joint hearings, issued 25 subpoenas to compel uncooperative Realtors and their firms to testify, and ultimately produced a wide-ranging investigative report with many legislative recommendations to tighten regulation of this often abusive industry. By signing this package of fair housing bills, Governor Hochul is sending a clear message to housing interests across New York that all homebuyers deserve to be treated with dignity and fairness.”

State and Local Agencies Have an Obligation to Fair Housing

 Legislation (S.1353-A/A.5428-A) requires all state and local agencies administering housing programs or enforcing housing laws that receive state funding to affirmatively further fair housing. Agencies must take meaningful steps to further fair housing. Pursuant to an agreement with the legislature, the Commissioner must report significant steps taken to in line with this obligation every five years, with interim reporting in year two and year four.

Increases Required Fair Housing Training for Real Estate Professionals

Legislation (S.2132-B/A.5359) increases required trainings for real estate professionals, particularly trainings related to fair housing. Trainings are required to include, but are not limited to courses on:

• The legacy of segregation, unequal treatment, and historic lack of access to housing opportunities;

• Unequal access to amenities and resources on the basis of race, disability and other protected characteristics;

• Federal, state, and local fair housing laws and

•Anti-bias training.

The bill is designed to prevent the unequal treatment of minority homebuyers by increasing overall instructional training as well as instructional training pertaining to fair housing and discrimination in the real estate industry.

Requires Implicit Bias Training for Real Estate Brokers or Salespersons

Legislation (S.538-B/S.4638-A) requires an additional two hours of training relating to implicit bias for real estate brokers and salespersons as part of their license renewal process. During investigations into the issues brought to light by “Long Island Divided,” it became apparent that many real estate professionals were unaware of the impact implicit bias could have in their industry, state officials said. The bill ensures that all real estate professionals are made aware of how harmful implicit bias can be and how to ensure they follow fair housing guidelines.

Requires Cultural Competency Training for Real Estate Brokers or Salespersons 

Legislation (S.979-A/A.844-A) requires that coursework on cultural competency be included in the curriculum for real estate broker and salesperson license qualification, and requires an additional two hours of training for real estate professionals in comprehensive cultural competency prior to renewing broker or salesperson licenses. This will help decrease discrimination in the real estate industry, and further educate real estate professionals to ensure they follow fair housing practices.

Requiring Standardized Intake Procedures for Real Estate Professionals

Legislation (S.2131-A/A.6186) requires standardized client intake procedures for real estate brokers and allows for a penalty to be imposed on any real estate broker or salesperson who fails to comply. Pursuant to an agreement with the legislature, real estate professionals must post and maintain their standardized operating procedures at their offices for inspection by the Department of State and the public. The bill allows for client intake procedures to be monitored and standardized, preventing discriminatory practices.

Requires Associate Brokers Serving as Office Managers to Supervise Other Real Estate Professionals

Legislation (S.2157-A/A.6355) requires associate real estate brokers who serve as office mangers to supervise other real estate professionals in their office. Office managers must have been active in the real estate industry two of the four years before beginning duties as office manager. Real estate brokers are responsible for maintaining and supervising their place of business, unlike associate brokers who have the same licensing but have chosen to work under the supervision of another broker. The legislation clarifies the required level of supervision and strengthens existing Department of State regulations. In addition, the legislation specifies the length of time an associate broker is required to work prior to becoming an office manager and will therefore ensure offices are appropriately supervised by experienced real estate professionals.

Creating a Telephone Line for Housing Discrimination Complaints

 Legislation (S.3437-C/A.2300-C) establishes a dedicated telephone line for housing discrimination complaints. This telephone line will be run by the Division of Human Rights and will provide assistance to those experiencing housing discrimination. This will create a more efficient process for reporting incidents of housing discrimination.

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realestateindepth.com/news/

NAR reports exisiting home sales fell 2% | Bedford Real Estate

Fueled by low mortgage interest rates and strong demand, existing home sales increased for a third straight month in November, according to the National Association of Realtors (NAR). However, supply has continued to lag due to ongoing supply-chain disruptions, keeping home price elevated and pricing out first-time and young buyers.

Total existing home sales, including single-family homes, townhomes, condominiums and co-ops, rose 1.9% to a seasonally adjusted annual rate of 6.46 million in November, the highest level since January. However, on a year-over-year basis, sales were 2.0% lower than a year ago, the fourth annual decline since August 2020.

The first-time buyer share fell to 26% in November, down from 29% in October and down from 32% a year ago. The November inventory level declined from 1.23 to 1.11 million units and is still down from 1.28 million units a year ago.

At the current sales rate, November unsold inventory sits at a 2.1-month supply, down from 2.3 month both last month and a year ago. This low supply of resale homes is good news for home construction.

Homes stayed on the market for an average of just 18 days in November, to the same as October and down from 21 days a year ago. In November, 83% of homes sold were on the market for less than a month.

The November all-cash sales share was 24% of transactions, equal to October’s share and up from 20% a year ago.

Tight supply continues to push up home prices. The November median sales price of all existing homes was $353,900, up 13.9% from a year ago, representing the 117th consecutive month of year-over-year increases, the longest-running streak on record. The median existing condominium/co-op price of $283,200 in November was up 4.4% from a year ago.

Geographically, three of four regions saw an increase in existing home sales in November, ranging from 0.7% in the Midwest to 2.9% in the South. Sales in the Northeast remained flat in November. On a year-over-year basis, however, sales declined in three major regions, ranging from 0.7% in the Midwest to 11.6% in the Northeast.

Meanwhile, the Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI increased 7.5% from 116.5 to 125.2 in October. On a year-over-year basis, sales were 1.4% lower than a year ago per the NAR data.

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eyeonhousing.org

Inflation up 6.8% | Pound Ridge Real Estate

In November, consumer prices increased by 6.8% from a year ago. It marks the largest year-over-year gain since June 1982. Supply-chain constraints and strong consumer demand related to the pandemic and the reopening of the economy have contributed to recent price increases in some sectors.

The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.8% in November on a seasonally adjusted basis, following an increase of 0.9% in October. Excluding the volatile food and energy components, the “core” CPI increased by 0.5% in November, after a 0.6% increase in October. In November, the price index for a broad set of energy sources increased by 3.5% in November, after a 4.8% increase in October. Gasoline (all type) rose by 6.1% in November, the same increase as in October. It marks its sixth consecutive monthly increase. The food index rose by 0.7% in November as the index for food at home increased by 0.8%.

Like last month, most component indexes increased in November. The indexes for apparel (+1.3%), shelter (+0.5%), airline fares (+4.7%), used cars and trucks (+2.5%), and new vehicles (+1.1%) showed sizeable monthly increases in November. The index for major appliances rose by 2.4% in November, after a 0.9% decline in October. Meanwhile, the indexes for motor vehicle insurance, recreation, and communication all declined in November.

The indexes for owners’ equivalent rent (OER) and rent of primary residence (RPR) both increased by 0.4% over the month. Monthly increases in OER and RPR have averaged 0.4% over the last three months.

During the past twelve months, on a not seasonally adjusted basis, the CPI rose by 6.8% in November, following a 6.2% increase in October. The “core” CPI increased by 4.9% over the past twelve months, following a 4.6% increase in October. The food index rose by 6.1% and the energy index rose by 33.3% over the past twelve months.

NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than overall inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster (slower) than overall inflation, the real rent index rises (declines). The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components).

The Real Rent Index decreased by 0.1% in November, after a decrease of 0.2% in October. Over the first eleven months of 2021, the monthly change of the Real Rent Index was -0.2%, on average.

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eyeonhousing.org

Home sales on Long Island dropped 16.9 percent | Bedford Corners Real Estate

Median sales prices up at least 9 percent year-over-year

November ended a five-month streak of year-over-year prices increasing by at least 10 percent

The housing market on Long Island has slowed from a year ago in terms of sales volume, but a lack of inventory is likely the culprit.

Home sales on Long Island dropped 16.9 percent year-over-year in November, according to data from OneKey MLS reported by Newsday. Home sales in Nassau County fell 19.2 percent, while Suffolk County sales decreased by 14.9 percent.ADVERTISING

As home sales dropped, so did availability of homes on the market. A 1.9-month supply of homes were for sale in Nassau last month and a 2.1-month supply of homes were available in Suffolk. The counties’ supply numbers in November 2020 were 3.3 months and 2.4 months, respectively.

Low supply could continue to hamper the market for the near future.

“We’ve had low inventory for quite a while now,” OneKey MLS CEO Jim Speer told Newsday. “I would expect it to stay at a pretty low level, hopefully not at this low a level, but I expect we wouldn’t see a great increase in the coming months.”ADVERTISEMENT

While listings are dropping and prices remain high, they aren’t soaring to the heights seen in recent months, a likely relief for homebuyers.

In Nassau, the median sale price was $655,000, a 9.3 percent increase year-over-year. But it was only an 0.8 percent, or $5,000, increase from October. November also ended a five-month streak of year-over-year prices increasing by at least 10 percent, according to Newsday, suggesting a slowing in price growth.ADVERTISEMENT

In Suffolk, the median sale price in November was $520,000, a 10.3 percent increase year-over-year, but only a 0.2 percent gain month-over-month, $1,000 in all.

The median sale prices in both counties are down from the historic highs hit during the summer, when Nassau reached $670,000, while Suffolk hit $531,000. The median pending sale in November for deals that hadn’t closed were for $650,000 and $515,000 in each county, respectively.

“I have definitely seen the market become more realistic,” Keller Williams Realty real estate agent Maria Wilbur told Newsday. “The offers coming in the last month or two have been closer to what the value of the house should be. They’re not so inflated.”

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https://therealdeal.com/tristate/2021/12/16/

Mortgage rates average 3.12% | Chappaqua Real Estate

 Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.12 percent.

“Mortgage rates inched up as a result of economic improvement and a shift in monetary policy guidance,” said Sam Khater, Freddie Mac’s Chief Economist. “While house price growth is slowing, prices remain high due to solid housing demand and low supply. We expect rates to continue to increase into 2022 which may leave some potential homebuyers with less room in their budgets on the sideline.”

News Facts

  • 30-year fixed-rate mortgage averaged 3.12 percent with an average 0.6 point for the week ending December 16, 2021, up from last week when it averaged 3.10 percent. A year ago at this time, the 30-year FRM averaged 2.67 percent.
  • 15-year fixed-rate mortgage averaged 2.34 percent with an average 0.7 point, down from last week when it averaged 2.38 percent. A year ago at this time, the 15-year FRM averaged 2.21 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.45 percent with an average 0.3 point, unchanged from last week. A year ago at this time, the 5-year ARM averaged 2.79 percent.

The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. 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.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.