This Week in Real Estate: June 29, 2015

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Good Morning!

The headliner This Week in Real Estate were the strong sales numbers reported in May for both new and existing homes. We are definitely in the middle of the strongest selling season we have experienced in the past six or seven years. Below are a few of the highlights from the final full week of June that influence our business:

* Sales of Existing U.S. Homes Reach Their Highest Level Since 2009. More first-time homebuyers took the plunge in May, helping catapult U.S. sales of previously owned properties to their highest level since 2009. Closings on existing houses rose 5.1 percent to a 5.35 million annualized rate. First-time buyers accounted for 32 percent of purchases during the month, matching the highest share since September 2012. Excluding November 2009, when demand was bolstered by the expiration of a federal government first-time homebuyer tax credit, sales last month were the strongest in more than eight years. Full story… http://www.bloomberg.com/news/articles/2015-06-22/sales-of-existing-u-s-homes-rose-in-may-to-highest-since-2009

* Sales of New U.S. Homes Rise to Highest Level in Seven Years. Purchase of new homes in the U.S. rose in May to the highest level in seven years, signaling the industry is gaining momentum heading toward the second half of the year. Sales climbed 2.2 percent to a 546,000 annualized pace, exceeding all forecasts in a Bloomberg survey of economists and the most since February 2008, Commerce Department data showed Tuesday in Washington. May 2015 sales were an astounding 19.5 percent higher than in May 2014. While housing starts declined 11.1 percent in May to a 1.04 million annualized rate, that followed a revised 1.17 million pace in April to cap the best back-to-back readings since late 2007. Permits for future projects rose to the highest level in almost eight years. Full story… http://www.bloomberg.com/news/articles/2015-06-23/sales-of-new-u-s-homes-increase-to-highest-level-in-seven-years

* OCC: Mortgage Performance Better in 1Q15. The performance of first-lien mortgages serviced by eight national banks improved during the first quarter of 2015, according to the Office of the Comptroller of the Currency’s quarterly report on mortgage performance. The OCC Mortgage Metrics Report, First Quarter 2015, showed 94.2% of mortgages included in this report were current and performing at the end of the quarter, compared with 93.1% a year earlier. The percentage of mortgages that were 30 to 59 days past due was 1.9% of the portfolio, a 7.0% decrease from a year earlier. Seriously delinquent mortgages made up 2.6% of the portfolio, a 16.4% decrease from a year earlier.
Full story… http://www.housingwire.com/articles/34312-occ-mortgage-performance-better-in-1q15

* FNC Index: April Prices Post Largest Seasonal Gain Since 2005. The latest FNC Residential Price Index (RPI) shows U.S. home prices climbed rapidly since March, as strong sales and limited inventory relative to demand continue to be the key narratives highlighting the spring housing market countrywide. April’s gain marks the largest March-to-April increase since spring 2005. Full story… http://www.fncresidentialpriceindex.com/ViewFile.aspx?ref=pr_95

Have a productive week!

Jason

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