May 31, 2012 | Housing Analysis
The housing market took a breather in April.
After forging past its benchmark value of 100 in March, April’s Pending Home Sales Index dropped back to 95.5, its lowest reading of the year. The data suggests fewer home resales throughout Worcester County area and nationwide in the months ahead.
A “pending home” is a home under contract to sell, but not yet closed. The Pending Home Sales Index is tracked and published monthly by the National Association of REALTORS®.
As a housing market indicator, the Pending Home Sales Index is fundamentally different from other housing metrics which often make headline news.
Unlike the Existing Home Sales report, for example; or the New Home Sales report, the Pending Home Sales Index is purported to be predictor of future housing market performance. It measures the number of homes (more…)
May 30, 2012 | Housing Analysis
Foreclosures filings fell 5 percent between March and April of this year, and by 11 percent as compared to one year ago. The data comes from RealtyTrac. The foreclosure-tracking firm tallied fewer than 189,000 foreclosure-related actions last month — the fewest number since July 2007.
Rapidly-declining foreclosure figures are another signal that the U.S. housing market may already be in recovery.
According to RealtyTrac’s methodology, a “foreclosure filing” is any (more…)
May 25, 2012 | Mortgage Rates
For the fifth consecutive week, conforming 30-year fixed rate mortgage rates have dropped to new all-time lows.
According to this week’s Primary Mortgage Market Survey from Freddie Mac, “prime” mortgage applicants willing to pay 0.8 discount points plus closing costs can secure a mortgage rate of 3.78%, on average.
This is a small improvement in rate over last week when the average 30-year fixed rate mortgage rate was 3.79% with 0.7 discount points.
1 discount point is equal to 1 percent of your loan size. (more…)
May 24, 2012 | Housing Analysis
The April New Home Sales report suggests that the market for newly-built homes is as strong as the market for existing ones.
According to the U.S. Census Bureau, the number of new homes sold rose 3.3 percent in April to a seasonally-adjusted, annualized 343,000 units sold — its second-highest reading since April 2010.
April 2010 marked the last month of that year’s federal home buyer tax credit program.
April’s New Home Sales data also marks the 7th of eight consecutive months during which the number of new homes sold climbed nationwide, a streak unequaled in recent history. During this period, the supply of new homes for sale has dropped 13%.
The complete new home inventory is down to 146,000 homes nationwide.
At the current pace of sales, home buyers in Worcester County area and across the county would exhaust the complete supply of newly-built homes in 5.1 months. (more…)
May 23, 2012 | Housing Analysis
Low mortgage rates are helping to make homes more affordable. It appears home buyers have taken notice.
According to the National Association of REALTORS®, Existing Home Sales rose 3.4% in April from the month prior, registering 4.62 million homes sold on a seasonally-adjusted, annualized basis.
An “existing home” is a home that’s been previously occupied. April’s sales volume represents a 10 percent jump from April of last year.
For buyers and sellers in Worcester County area , the April Existing Home Sales report supports the notion that the housing market may be improving; that the “bottom” occurred sometime in late-2011. Home values have been rising in many U.S. markets and home builders now report the highest levels of foot traffic through models since 2007.
Demand for U.S. housing is growing.
It also helps that home affordability is at an all-time high. Not in recorded history have this many homes for sale been affordable to buyers earning a moderate household income, on a percentage basis. Additionally, there is now a larger stock of homes from which buyers can choose. (more…)
