This Week in Real Estate, the National Association of Realtors declared Q3 2015 the best quarter in a decade. Below are a few of the highlights from the second week in November that influence our business:
* Existing-Home Sales on Track for Further Expansion in 2016. Following the housing market’s best year since the recession, existing-home sales are expected to increase in 2016 at a moderate pace; although affordability pressures from inventory shortages and rising mortgage rates could slow the potential for even stronger sales momentum, according to an economic forecast forum at the 2015 REALTORS Conference & Expo. According to Lawrence Yun, chief economist of the National Association of Realtors, the pent-up demand for buying in recent years finally broke out in a meaningful way in 2015, fueled by sustained job growth in many parts of the country and rising home values giving more homeowners the incentive to sell – a trend that he expects to continue next year. “Sales activity in 2016 will once again be primarily driven by the ongoing release of more pent-up sellers finally realizing their equity gains and using it towards the down payment on their next home,” said Yun. Yup forecasts home sales to finish 2015 at a pace of 5.30 million and then expand 3 percent to around 5.45 million in 2016. Full Story… http://www.realtor.org/news-releases/2015/11/existing-home-sales-on-track-for-further-expansion-in-2016
* Third Quarter 2015 the Best Quarter in a Decade. The National Association of Realtors is calling the third quarter 2015 unquestionably the best quarter for the housing market in a decade. Existing home sales and the continuing shortages of product kept home prices rising in most of the country. Overall price appreciation did slow to what NAR calls a healthier pace. The median existing single-family home price increased in 154 of the 178 metropolitan statistical areas (MSAs) tracked by the association (87 percent) compared to median prices in the third quarter 2014. In the West, existing-home sales increased 3.9 percent in the third quarter and are 9.7 percent above a year ago. The median existing single-family home price in the West increased 7.3 percent to $324,300. Full Story… http://www.mortgagenewsdaily.com/11122015_metro_home_prices_sales.asp
* Affordability Edges Lower in Third Quarter. Modest home price and interest rate increases resulted in a slight drop in nationwide housing affordability in the third quarter of 2015, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). In all, 62.2 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $65,800. This is down from the 63.2 percent of homes sold that were affordable to median-income earners in the second quarter. The national median price increased slightly from $230,000 in the second quarter to $231,000 in the third quarter. Meanwhile, average mortgage rates edged higher from 3.99 percent to 4.18 percent in the same period. Full Story… http://eyeonhousing.org/2015/11/affordability-edges-lower-in-third-quarter/
Have a productive week!