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Bedford Corners NY Homes

Mortgage rates average 5.25% | Bedford Corners 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 5.25 percent.

“Economic uncertainty is causing mortgage rate volatility,” said Sam Khater, Freddie Mac’s Chief Economist. “As a result, purchase demand is waning, and homebuilder sentiment has dropped to the lowest level in nearly two years. Builders are also dealing with rising costs, meaning this posture is likely to continue.”

News Facts

  • 30-year fixed-rate mortgage averaged 5.25 percent with an average 0.9 point as of May 19, 2022, down from last week when it averaged 5.30 percent. A year ago at this time, the 30-year FRM averaged 3.00 percent.
  • 15-year fixed-rate mortgage averaged 4.43 percent with an average 0.9 point, down from last week when it averaged 4.48 percent. A year ago at this time, the 15-year FRM averaged 2.29 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.08 percent with an average 0.2 point, up from last week when it averaged 3.98 percent. A year ago at this time, the 5-year ARM averaged 2.59 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.

Mortgage applications and new home sales drop as rates jump | Bedford Corners Real Estate

The MBA Mortgage Application Index declined 8.1% last week, following the prior week’s decrease of 1.2%. The downward move came as a 14.4% drop in the Refinance Index was accompanied by a 1.5% fall for the Purchase Index. The average 30-year mortgage rate extended its climb, jumping 23 basis points (bps) to 4.50%, and is up 114 bps versus a year ago.

In other housing news, new home sales (chart) fell 2.0% month-over-month (m/m) in February to an annual rate of 772,000 units, shy of the Bloomberg consensus forecast calling for a rate of 810,000 units, and below January’s downwardly-revised 788,000-unit level. The median home price rose 10.7% y/y to $400,600. New home inventory rose to 6.3 months from January’s level of a 6.1-months supply at the current sales pace. Sales jumped m/m in the Northeast, and were higher in the Midwest, while lower in the South and West. Sales in all regions were lower y/y, except for the Northeast which gained ground. New home sales are based on contract signings, offering a timelier read on housing activity compared to the larger contributor of existing home sales, which are based on closings

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schwab.com

Building Materials Prices Increase 1.5% in December | Bedford Corners Real Estate

The prices of goods used in residential construction ex-energy climbed 1.5% in December (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. The index was driven higher by large price increases for wood products.

Building materials prices increased 15.9% in 2021 and have risen 18.6% since December 2020. Since declining 1.8% between July and August 2021, the index has climbed 4.5%.

The price index of services inputs to residential construction increased 0.4% in December following a five-month period over which the index declined 13.6%.  The index is 9.6% higher than it was 12 months prior and 19.6% higher than the January 2020 reading.

Softwood Lumber

The PPI for softwood lumber (seasonally adjusted) increased 24.4% in December and has gained 44.5% since September.  According to Random Lengths data, the “mill price” of framing lumber has roughly tripled since late August.

The PPI of most durable goods for a given month is largely based on prices paid for goods shipped, not ordered, in the survey month. This can result in lags relative to cash market prices, suggesting another sizable increase in the softwood lumber producer price index may be in the next PPI report.

Record-high volatility of softwood lumber prices continues to be as problematic as high prices. The monthly change in softwood lumber prices averaged 0.3% between 1947 and 2019. In contrast, the percent change of the index has averaged 12.0% since January 2020—the highest 24-month average since data first became available 1947 and nearly triple the previous record.

Steel Products

Steel mill products prices rose 0.2% in December, the smallest monthly increase since September 2020. Monthly price increases have slowed in each of the past five months.

The last monthly price decrease in steel mill products occurred in August 2020, and the index has climbed 152.2% in the months since–with more than 80% of that increase taking place in 2021.

Ready-Mix Concrete

The PPI for ready-mix concrete (RMC) gained 0.9% in December after increasing 1.1% in November.  The index for RMC increased 6.5% between January and December 2021 and is 9.3% higher than the January 2020 level.

At the regional level, prices increased in the South (+1.0%) and West (+1.1%) as prices declined in the Midwest (-0.1%).  The price of RMC held steady in the Northeast.

 Gypsum Products

In December, the PPI for gypsum products decreased 0.5%–the second consecutive monthly decline.  Gypsum products prices ended the year 18.2% higher than they were in January.

Paint

The PPIs for exterior architectural coatings (i.e., paint) increased 1.6% in December while the price of interior paint was unchanged. Neither index has declined since January 2021 and the January-to-December price increases of architectural coatings is unprecedented–exterior and interior paint prices climbed 19.8% and 10.9%, respectively, in 2021.

Other Building Materials

The chart below shows the 12-month and year-to-date price changes of other price indices relevant to the residential construction industry.

Building Materials Wholesaling and Retailing

In contrast to the PPI for building materials retailing—which increased 0.4% in December—the Producer Price Index for building materials wholesaling decreased 1.3% over the month.  The wholesale and retail services indices measure changes in the nominal gross margins for goods sold by retailers and wholesalers. Gross profit margins of retailers, in dollar terms, have declined 25.7% since reaching an all-time high in June 2021 but remain 27.3% higher than the January 2020 level.

Building materials wholesale and retail indexes account for roughly two-thirds of the PPI for “inputs to residential construction, services.”

Professional Services

The category of professional services carries the third most weight among those that make up the service inputs to residential construction PPI.  The prices of legal, architectural, and engineering services changed 0.5%, 0.0%, and -0.1%, respectively, in December. Although the year-to-date increase in prices of professional services used in residential construction are quite modest compared to that of materials, prices have increased more in 2021 than they had by December 2020; the difference is especially striking for architectural services.

Though the difference in price changes for legal services is small, the percentage increases are large relative to engineering and architectural.  This follows with a trend in recent years.  Since December 2018, the price of legal services has risen 13.6%–much more than the three-year increase in architectural (+1.1%) and engineering services (+5.8%).

Metal Treatment Services

Prices of metal treatment services increased 1.2%, on average, in December.  The subset of these services used to calculate the services inputs to residential construction includes plating and polishing, coating and allied services, and heat treating.

Metal coating and allied services increased the most over the course of 2021 (+14.9%, NSA).  Metal heat treating and plating and polishing services climbed 6.2% and 3.8%, respectively, between January and December.  The average monthly price increase of the three services was just 0.1% over the course of 2020.

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eyeonhousing.org/2022/01/

NYC rents skyrocket amid record-high inflation rates | Bedford Corners Real Estate

As New Yorkers struggle with higher gas and grocery prices amid record-high inflation rates, the cost of rent is also increasing — and isn’t expected to level off anytime soon, according to data and experts. 

The net effective median rent in Manhattan increased by a whopping 10.1 percent between July and October and 20 percent since January as inflation jumped to the highest level seen since 1990, according to data compiled by Miller Samuel/Douglas Elliman.

In Queens, the third-quarter median asking rent was $2,200 this year, just $100 shy of the pre-pandemic peak set in quarter three of 2019, according to data from StreetEasy. 

While numbers from Miller Samuel/Douglas Elliman show housing costs across Manhattan, Brooklyn and Northwest Queens are still lower than 2019, early numbers from real estate analytics company UrbanDigs show prices jumped beyond pre-pandemic levels this month. 

So far, the median asking rent in Manhattan is up 27 percent this month compared to last year and up 4 percent compared to November 2019, the data show. 

Cityscape at dusk of the upper westside looking to midtown.
New York’s numbers reflect a nationwide trend that’s seen a 0.4 percent increase in housing cost for renters between September and October.

In Brooklyn, the median asking rent is up 15 percent so far this month compared to last year and up 5 percent compared to Nov. 2019. 

“I wish I had better news on that one, I think a lot of tenants are likely to get sticker shock at their next lease renewal,” Greg McBride, the chief financial analyst at the personal finance website Bankrate.com, told The Post. 

“If inflation does eventually moderate and we get back to that 2 percent rate of inflation, then OK, that’s an environment where rents would likely increase at a much more modest, pedestrian pace, but if inflation stays at 4 or 5 percent, that’s going to translate into similar increase in rents year after year.” 

New York’s numbers reflect a nationwide trend that’s seen a 0.4 percent increase in housing cost for renters between September and October amid a dwindling supply of listings, high demand and a supply chain bottleneck that’s increased the cost of home building materials, Labor Department data show. 

Earlier this year, rents in tech hubs like New York City, Los Angeles and Chicago were declining by 15.8 percent but in September, they jumped by 7.6 percent year over year, according to data from Realtor. 

“In New York City, the vacancy rate here is already absurdly low and rents have been steadily rising post pandemic as there is more demand than supply. Additionally, if mortgage rates start to go up and affordability is affected it will force potential buyers to become renters as they are priced out of the market,” Pamela Liebman, the CEO of real estate giant Corcoran, told The Post. 

“If mortgage rates rise, that will put additional pressure on an already robust rental market and we could see a serious rise in rent. And as landlords’ costs go up due to inflation, they will continue to pass the increases on to the tenants.” 

High angle view of Lower East Side in Manhattan.
Earlier this year, rents in tech hubs like New York City, Los Angeles and Chicago were declining by 15.8 percent but in September, they jumped by 7.6 percent year over year

The pandemic massively disrupted New York’s housing market and is partly to blame for the sky-high increases, said Jonathan Miller, the President and CEO of Miller Samuel Inc.

“The rate of growth in 2021 has been like a rocket ship, but it’s coming from a very low place because rents fell to 25% during the early days of the pandemic and now are rising,” Miller explained. 

“If we look at net-effective median rent for all of Manhattan compared to October of 2019, so pre-pandemic but the same seasonal period in the year, median rent is 0.8 percent below 2 years ago. It’s very close to parity.” 

Still, with billions in stimulus dollars flowing through the region, expected wage growth and the return of international buyers, demand is only expected to go up and unless the housing supply increases, rent costs are slated to jump even more, too, said Miller.  

In 2020, the number of new housing permits decreased by 26.3 percent citywide and in Manhattan, only 1,896 new housing permits were issued last year, down 65.6 percent from 2019 and the lowest level seen since the 2010 Great Recession, city statistics show.  

Aerial photo of Manhattan buildings.
Rents are expected to continue to grow throughout the end of the year and throughout next spring according to an economist at StreetEasy.

“Rents are going to continue to grow throughout the end of the year and throughout next spring,” said Nancy Wu, an economist with StreetEasy. 

“We’re going to see a very busy rentals market [next year] and high demand is going to lead to higher rents, given the supply is pretty constant.” 

At the start of the pandemic, New York implemented a moratorium on evictions barring landlords from booting tenants who can show they’re behind on their rents because of COVID-era financial difficulties but the program will end come January 15. 

Beyond that, cash-strapped renters can apply for state aid through a federally financed program designed to help lower-income New Yorkers pay their housing costs but that program has a bottom, too. 

So far, tenants have filed 252,000 applications, 73,000 of which have been paid out, totaling $913 million in aid. 

An additional 73,000 applications, totaling $917 million in aid, have been tentatively approved.

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nypost.com/2021/11/11/

New homes sales down 17.6% | Bedford Corners Real Estate

The numbers: New-home sales surge higher

Sales of new homes in the U.S. rose in September, even though home prices rose to a new high.

U.S. new-home sales increased 14% to an annual rate of 800,000, the government said Tuesday. That figure represents the number of homes that would be sold over a yearlong period of time if the same number of properties were bought each month based on the rate of sales in September. Compared to a year ago, sales were down 17.6%.

The median forecast of economists polled by MarketWatch was that new home sales would come in at an annual rate of 760,000 for September.

The new-home sales report from the U.S. Census Bureau, unlike the existing-home sales report from the National Association of Realtors, reflects sales where the contract is signed but the transaction has not yet closed. The report’s small sample size also means that it is quite volatile and prone to large revisions.

What happened

The median sales price of new houses sold in September was $408,800, marking a new record high. The supply of new homes for sale fell by more than 12% between August and September, equating to a 5.7-month supply.

Regionally, the Northeast notched the largest percentage gain in new-home sales, while the Midwest was the only part of the country to record a decrease, as was the case the month prior.

The big picture

As Pantheon Macroeconomics chief economist Ian Shepherdson noted, Americans may be seeing “something of a revival in the housing market.” Both new and existing home sales have rebounded from the downturn earlier this year. A mix of factors could be at play.

“A combination of lower rates, easier lending standards and, perhaps, a renewed bout of COVID fear in cities, has driven the turnaround, which appears to be continuing in October, though perhaps at a slowing pace,” Shepherdson wrote in a research note.

To his latter point, rising mortgage rates could price out some home buyers at the margins, which could become a headwind for the market in the months to come.

What they’re saying

“Noticeably, the cost of lumber bounced off the August bottom of around $400, moving into the mid-$600s per thousand board feet. The increase ensured that homebuilders kept higher prices, pushing the median new home sale price up double-digits from a year ago,” said George Ratiu, manager of economic research for Realtor.com.

Market reaction

The Dow Jones Industrial Average and S&P 500 index both increased in Tuesday morning trades.

Major home-builder stocks such as D.R. Horton, Lennar Corp. and PulteGroup turned positive following the new home sales report’s release.

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realtor.com/news/real-estate

Single family construction spending up 41% | Bedford Corners Real Estate

NAHB analysis of Census Construction Spending data shows that total private residential construction spending rose 0.5% in July to a seasonally adjusted annual rate of $773.0 billion. Total private residential construction spending was 27% higher than a year ago.

The monthly gains are attributed to the strong growth of spending on single-family construction and improvements. Single-family construction spending rose to a $416.3 billion annual pace in July, up by 0.9% over the upward revised June estimates. It increased by 47.1% on a year-over-year basis. Spending on improvements edged up 0.2% in July, after a 0.7% dip in June. Multifamily construction spending stayed flat in July but was 14.9% higher than a year ago.

The NAHB construction spending index, which is shown in the graph below (the base is January 2000), illustrates the solid growth in single-family construction and home improvement from the second half of 2019 to February 2020, before the COVID-19 hit the U.S. economy, and the quick rebounds since July 2020. New multifamily construction spending has picked up the pace after a slowdown in the second half of 2019.

Private nonresidential construction spending slipped to a seasonally adjusted annual rate of $458.0 billion in July, a 0.2% dip from upwardly revised June estimates. And it was 3.6% lower than a year ago. The largest contribution to this month-over-month nonresidential spending decrease was made by the class of power ($0.8 billion), followed by transportation ($0.2 billion), and class of communication ($0.1 billion).

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eyeonhousing.org/2021/09

Eviction moratorium update | Bedford Corners Real Estate

Eviction friction

A national moratorium on the eviction of tenants had previously been set to expire today, though a 5-4 decision at the nation’s highest court will see the order extended for another month. Chief Justice John Roberts and Justice Brett Kavanaugh joined with the court’s three liberal justices to leave the moratorium in place, with Kavanaugh issuing a one-paragraph concurrence detailing his views. “Because the CDC plans to end the moratorium in only a few weeks, on July 31, and because those few weeks will allow for an additional and more orderly distribution of the congressionally appropriated rental assistance funds, I vote at this time to deny the application” that had been filed by real estate firms and trade associations.

Backdrop: The CDC eviction moratorium was put in place under the Trump administration, aiming to shield tenants who missed monthly rent payments from being forced out of their homes during the coronavirus pandemic (they still owe back rent). It was originally set to expire on Dec. 31, 2020, but Congress stretched the order until late January, and it was then extended several more times under the Biden administration. While the CDC last week announced a final, one-month extension through July, U.S. District Judge Dabney Friedrich ruled the moratorium was legally unsupportable, though she stayed her ruling (pending appeal) citing public-health concerns.

While the moratorium has protected millions of tenants, it has also resulted in financial hardships for landlords. Property owners, which say they are losing $13B a month in unpaid rent, are still liable for taxes, insurance and maintenance costs tied to their real estate. They also said the ban on evictions is less justifiable now due to the easing of COVID-19 restrictions and a high number of vaccinated Americans.

Reactions: “Allowing evictions to proceed when there are tens of billions in resources to prevent them would be wasteful and cruel,” said Diane Yentel, CEO of the National Low Income Housing Coalition. Landlords feel differently. “With the pandemic waning and the economy improving, it is time to restore the housing sector to its healthy, former function,” replied Charlie Oppler, President of the National Association of Realtors.

Statistics: By the end of March, 6.4M American households were behind on their rent, according to data from the Department of Housing and Urban Development. On June 7, a Household Pulse Survey from the U.S. Census Bureau also showed that roughly 3.2M people in the U.S. feared an eviction in the next two months.

NYS extends eviction moratorium | Bedford Corners Real Estate

On May 4, New York Gov. Andrew M. Cuomo signed an extension of the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 and the COVID-19 Emergency Protect Our Small Businesses Act. The legislation (S.6362-A/A.7175-A) extends moratoriums prohibiting residential and commercial evictions, foreclosure proceedings, as well as protections against credit discrimination and negative credit reporting related to the COVID-19 pandemic until Aug. 31, 2021.

“As we approach the light at the end of the COVID-19 tunnel, it is critical that we continue to protect both New York’s tenants and business owners who have suffered tremendous hardship throughout this entire pandemic,” Gov. Cuomo said. “Extending this legislation will help to ensure that vulnerable New Yorkers and business owners who are facing eviction through no fault of their own are able to keep their homes and businesses as we continue on the road to recovery and begin to build back our economy better than it was before.”

Residential Evictions

The legislation places a moratorium on residential evictions until Aug. 31, 2021 for tenants who have endured COVID-related hardship. Tenants must submit a hardship declaration, or a document explaining the source of the hardship, to prevent evictions. Landlords can evict tenants that are creating safety or health hazards for other tenants, and those tenants who do not submit hardship declarations.

Residential Foreclosure Proceedings

The legislation also places a moratorium on residential foreclosure proceedings until Aug. 31, 2021. Homeowners and small landlords who own 10 or fewer residential dwellings can file hardship declarations with their mortgage lender, other foreclosing party or a court that would prevent a foreclosure.

Commercial Evictions:

The legislation places a moratorium on evictions until Aug. 31, 2021 for commercial tenants have endured COVID-related hardship. The legislation applies to small businesses with under 50 employees that demonstrate a financial hardship. Tenants must submit a hardship declaration, or a document explaining the source of the hardship, to prevent evictions.

Commercial Foreclosure Proceedings:

The legislation places a moratorium on commercial foreclosure proceedings until Aug. 31, 2021.

Tax Lien Sales

The legislation prevents local governments from engaging in a tax lien sale or a tax foreclosure until at least Aug. 31, 2021. Payments due to the locality are still due.

Credit Discrimination and Negative Credit Reporting

Lending institutions are prohibited from discriminating against a property owner seeking credit because the property owner has been granted a stay of mortgage foreclosure proceedings, tax foreclosure proceedings or tax lien sales. They are also prohibited from discriminating because the owner is in arrears and has filed a hardship declaration with the lender.

Senior Citizens’ Homeowner Exemption and Disabled Homeowner Exemption

Local governments are required to carry over SCHE and DHC exemptions from the 2020 assessment roll to the 2021 assessment roll at the same levels. They are also required to provide renewal applications for anyone who may be eligible for a larger exemption in 2021. Localities can also set procedures by which assessors can require renewal applications from people who the assessors believe may no longer be eligible for an exemption in 2021. Recipients of the exemption do not have to file renewal applications in person.

Gov. Cuomo first announced a state moratorium on residential and commercial evictions on March 20, 2020 to ensure no tenant was evicted during the height of the public health emergency. The governor signed the Tenant Safe Harbor Act on June 30 which became effective immediately as well as additional legislation providing financial assistance to residential renters and landlords. Additionally, previous Executive Orders have prohibited charges or fees for late rent payments, and tenants facing financial hardship can still use their security deposit as payment and repay their security deposit over time.

Senate Housing Committee Chair and bill sponsor Brian Kavanagh said, “The COVID-19 numbers in New York continue to be stubbornly high throughout the state and we need public health measures like the eviction and foreclosure moratorium to keep New Yorkers safe, and ultimately to get past this terrible pandemic as soon as possible. The Centers for Disease Control have specifically found that permitting evictions increases the spread of COVID-19 and that moratorium laws like New York’s work to prevent transmission. Ensuring that everyone has access to a stable, safe place to live is always a priority, but it’s never been more important than it is now.”

Assemblyman Jeffrey Dinowitz added, “I am very pleased that the Assembly passed this critical legislation that will help keep people in their homes and small business owners in their stores. This is life-changing legislation that allows the New York State Office of Temporary and Disability Assistance and other relevant agencies more time to disburse the billions of dollars in state and federal funding to people who need it. We are still in the midst of a global pandemic and the worst economic crisis in our lifetimes. I believe it would be immoral to allow the current moratorium to lapse. This law will save lives.”

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Governor Signs Extensions of Residential, Commercial Evictions and Foreclosure Moratoriums

Pending home sales up 13% | Bedford Corners Real Estate

January marked the fifth straight month that the National Association of Realtors® (NAR) has reported a decline in its Pending Home Sales Index (PHSI). The index, based on newly signed contracts for the purchase of existing homes, was down 2.8 percent from its December level.

The index in January was at 122.8 compared to 125.5 in December and has lost 10 points since August. Still, pending sales were up 13 percent compared to a year earlier. This January’s PHSI was, in fact, the highest for any January on record.  

Analysts had expected the index to be flat but individual estimates by those polled by Econoday all overshot the actual results. They covered a range from a 1.5 percent downturn to 0.5 percent growth. The consensus was for zero change.

“Pending home sales fell in January because there are simply not enough homes to match the demand on the market,” said Lawrence Yun, NAR’s chief economist. “That said, there has been an increase in permits and requests to build new homes.” Yun said that increase in single-family permits has been consistent for eight months and is a good sign that the supply and demand imbalance in the residential real estate market could be easing as soon as mid-2021.

“There will also be a natural seasonal upswing in inventory in spring and summer after few new listings during the winter months,” he said. “These trends, along with an anticipated ramp-up in home construction will provide for much-needed supply.”

Following a week where January’s existing-home sales increased, Yun noted that pending contracts are a great early indicator for upcoming closed sales but stressed that the timing of the relationship between existing-home sales and pending home sales may not be in lockstep.

“The two measurements aren’t always perfectly correlated due to varying amounts of time required to close a contract,” Yun said. “This is because a number of fallouts can occur due to a variety of factors, including a buyer not obtaining mortgage financing, a problem with a home inspection, or an appraisal issue.”

He noted that the economy is showing promising signs of improvement, and many millions of Americans are now receiving a COVID-19 vaccination. Still, he cautioned that the better economic outlook, rising inflation prospects and higher budget deficits will soon drive increases in interest rates. “I don’t foresee mortgage rates jumping to an alarming level,” he said, “but we should prepare for a rise of at least a decimal point or two.”

The Northeast PHSI fell 7.4 percent to 101.6 in January, putting it 9.6 percent higher than a year earlier. In the Midwest, the index declined 0.9 percent to 113.2, up 8.6 percent from January 2020.

Pending home sales transactions in the South inched up 0.1 percent to an index of 151.3 in January and were 17.1 percent higher year-over-year. The index in the West was at 104.6, a 7.8 percent drop from December but up 11.5 percent from a year prior.

The PHSI is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. Existing home sales numbers for February will be released on March 22.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

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http://www.mortgagenewsdaily.com/02252021_pending_home_sales.asp

NAR reports 12% home price increase | Bedford Corners Real Estate

Low mortgage rates and record-low housing inventory has driven home price increases throughout the year. The National Association of Realtors is saying that the median single-family home price grew year over year in all 181 metro areas it tracks.

In the U.S., median existing single-family home prices rose 12% year over year to $313,500, NAR said. In 117 metros, there were double-digit price gains from one year ago. For added perspective, in Q2, only 15 metro areas had double-digit price gains.

What can help remedy high home prices? Finding a solution to the housing inventory crisis, NARs Chief Economist Lawrence Yun said.

By the end of Q3, 1.47 million existing homes were available for sale, which is 19.2% lower than the total inventory at the end of Q3 last year. As of September 2020, there were enough homes in inventory to last 2.7 months at the current sales pace.

“As home prices increase both too quickly and too significantly, first-time buyers will increasingly face difficulty in coming up with a down payment,” Yun said. “Transforming raw land into developable lots and new supply are clearly needed to help tame the home price growth.”

Some of the metros with the biggest gains in Q3 were Bridgeport, Conn., 27.3%; Crestview, Fla., 27.1%; Pittsfield, Mass., 26.9%; Kingston, N.Y., 21.5%; and Atlantic City, N.J., 21.5%.

According to NAR, the monthly mortgage payment on a typical single-family home rose to $1,059 in Q3. As of Thursday, the average U.S. mortgage rate for a 30-year fixed loan rose to 2.84%, Freddie Mac said.

“Favorable mortgage rates will continue to bring fresh buyers to the market,” said Yun. “However, the affordability situation will not improve even with low-interest rates because housing prices are increasing much too fast.”

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https://www.housingwire.com/articles/nars-yun-says-median