This week marked the start of the second half of 2015 which begs the question: will the momentum of Q2 carry forward into Q3 and Q4? The Pending Home Sales Index suggests an affirmative yes to that question in This Week in Real Estate. Below are a few of the highlights from the first couple of days in July that influence our business:
* Price Gains Accelerating Again – Black Knight. Nationally the Home Price Index (HPI) is now within 7.6 percent of the peak value it reached in July 2006 of $268,000. Several states have already established new high-water marks for prices including Colorado and Texas which have done so nearly monthly for over a year. Among the largest metropolitan areas Austin, Dallas, Houston, and San Antonio all hit new peaks along with Columbus, Ohio, Denver, Honolulu, Nashville, San Francisco and San Jose. Both Boston and Portland, Oregon are now less than 0.75 percent away from doing so as well. Prices as measured by the HPI went up in every state from March to April, led by Washington with a 2.0 percent gain. Michigan and Colorado followed, each at 1.7 percent, Oregon at 1.6 percent, and both Minnesota and the District of Columbia at 1.3 percent. Full story… http://www.mortgagenewsdaily.com/06292015_black_knight_hpi.asp
* Pending Home Sales Continue Momentum. The Pending Home Sales Index increased for the fifth straight month to the highest level in over nine years. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors, increased .9% in May to 112.6, and climbed to 10.4% above the May level a year ago. It is now at its highest point since April 2006 when it hit 113.7. Regionally, the May PHSI increased 6.3% in the Northeast and 2.2% in the West. However, the May PHSI declined slightly by .6% in the Midwest and .8% in the South. Year-over-year, the PHSI was up 13% in the West, 10.6% both in the Northeast and South, and 7.8% in the Midwest. Full story… http://eyeonhousing.org/2015/06/pending-sales-continue-momentum/
* Housing Prices – Slowing to Sustainable Growth. The Federal Housing Finance Agency (FHFA) and the Standard and Poor’s/Case-Shiller recently released their respective home price indices for April. House prices have been recovering since reaching the bottom of the downturn in 2012. The annualized growth rate of the FHFA price index has been volatile month-to-month but provides a detailed measure of the pre-boom stability, boom period acceleration, subsequent collapse and recovery of prices. The post-crash growth rate reached a double digit peak in 2013, but has decelerated to more sustainable levels since then. The annual growth rate is 3.4% in April, comparable with the 4.1% in March and lower than the 8.6% in February. House prices reported by the Standard and Poor’s/Case-Shiller show the same dynamics as the FHFA index, sharply rising prices during the boom followed by steep declines and finally recovery beginning in 2012. Full story… http://eyeonhousing.org/2015/06/housing-prices-slowing-to-sustainable-growth/
* Cash Sales Fall to Six Year Low; Distressed Sales Plummet. Only one out of four single family home and condo sales in May – 24.6 percent – were all-cash purchases, down from 30.4 percent a year ago to the lowest level since November 2009. The cash sales share in May was close to its long-term average going back to January 2000 of 24.8 percent and well below its recent peak of 42.2 percent in February 2011. Distressed sales also fell to a new low of 10.5 percent of all sales in May, down from 18.3 percent a year ago to the lowest level since January 2011. “As housing transitions from an investor-driven, cash-is-king market to one more dependent on traditional buyers, sales volume has been increasing over the last few months and is on track in 2015 to hit the highest level we’ve seen since 2006,” said Daren Blomquist, vice president at RealtyTrac.
Full story… http://www.realtytrac.com/news/foreclosure-trends/may-2015-u-s-home-foreclosure-sales-report/
Have a productive week!