Monthly Archives: June 2015

New-home sales rise 2.2% in May to fastest pace in more than 7 years | Bedford Corners Homes

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New single-family homes in the U.S. sold at an annual rate of 546,000 in May, hitting the fastest pace since February 2008, with growth in two of four regions, the government reported Tuesday. Economists polled by MarketWatch had expected a sales rate of 525,000 in May, compared with a prior estimate of 517,000 for April. On Tuesday the U.S. Commerce Department revised April’s rate to 534,000. May’s pace was up 19.5% from a year earlier, signaling a healthy pick up, though recent sales rates remain below long-term averages. The median price of new homes, meanwhile, fell 1% to $282,800 compared with May 2014. The supply of new homes was 4.5 months at May’s sales pace, down from 4.6 months in April. Economists caution over reading too much into a single monthly report. A confidence interval of plus-or-minus 16.7% for May’s growth of 2.2% shows that the government isn’t sure whether the sales pace rose or fell last month.

 

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http://www.marketwatch.com/story/new-home-sales-rise-22-in-may-to-fastest-pace-in-more-than-7-years-2015-06-23

Mortgage Modifications have changed | Chappaqua Real Estate

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There’s been a dramatic change in the assistance offered to struggling homeowners.

In February, 49% of borrowers with a loan backed by federally controlled housing-finance giants Fannie Mae and Freddie Mac received modifications that only extended the length of their mortgage. That share was up 20 percentage points from a year earlier, according to a report from the Federal Housing Finance Agency, which regulates the government sponsored enterprises. Over that same time period, the share of borrowers receiving a modification that combined an extended term with other actions, such as a rate reduction and principal forbearance, fell by 19 percentage points.

Similar trends are seen in quarterly data from the Office of the Comptroller of the Currency, which publishes a snapshot of the U.S. mortgage market. According to the OCC, the chance that a modification included a term extension rose by 10% in 2014. Meanwhile, the likelihood dropped 15% for a rate reduction and 66% for a principal deferral.
The reason? The big rise in home prices since 2012.

“As the market improves, the number of borrowers who are in deep distress goes down, so the average modification tends to get lighter because they don’t need to provide as much relief,” said Jim Parrott, a former housing-policy adviser for the White House’s National Economic Council and a senior fellow at the Urban Institute, a Washington think tank.

Also, as time has passed, the pool of borrowers who are eligible for the most rigorous modifications has narrowed.

Officials have tweaked mortgage-help programs since the bubble burst, including an important change in 2014 to enable borrowers with loan-to-value ratios under 80% to receive a GSE modification that will generally only extend the term of a mortgage. Thanks to rising home prices — they bottomed out in early 2012 and are now about 9% down from a bubble peak — owners have become increasingly likely to have equity.

“The practice of providing a modification to somebody with significant equity is fairly new,” said Julia Gordon, senior director for housing and consumer finance at the Center for American Progress, a left-leaning think tank in Washington. “The assumption in the past, pre-crisis, was if you get into terrible trouble with your mortgage, your solution was to downsize.”

 

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http://www.marketwatch.com/story/the-changing-face-of-mortgage-modifications-2015-06-18?link=MW_Nav_NV

Sales of Existing Homes to First-Time Buyers Rise | Armonk Real Estate

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Existing home sales, as reported by the National Association of Realtors (NAR), rose to the highest pace in six years in May. The report was also notable due to an increase in purchases by first-time buyers, which rose to the highest share experienced since September 2012.

The May pace of existing home sales (5.35 million on seasonally adjusted annual basis) was 5.1% higher than the prior month and 9.2% higher than the rate set during May of 2014. Sales of single-family homes were up 5.6% for the month, reaching a 4.73 million annual rate.

EHS_may15

The first-time buyer share increased to 32% in May, up from 30% in April. NAR reported that first-time buyer share reached its highest level since September 2012. This increase is consistent with prior analysis of Fannie Mae data illustrating that the share of mortgage originations to first-time home buyers is expected to rise in 2015.

Regionally, existing home sales increased strongly in the Northeast (11.3% for May) and are up 11.3% year-over-year. Midwest sales increased 4.1% for the month and now stand 12.4% higher than May 2014. Sales in the West rose 4.3% in May and are up 9% from a year ago. Finally, sales in the South increased 4.3% compared to April and are 6.9% higher than May 2014.

Total housing inventory, as estimated by NAR, increased 3.2% t0 2.29 million existing housing units. This marks a 5.1 months-supply at the May sales pace.

The median existing home price in May was $228,700. NAR noted that May represented the 39th consecutive month of year-over-year price gains for existing homes.

 

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http://eyeonhousing.org/2015/06/

Local Farmers Markets | Mt Kisco Real Estate

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Trotta Foods Features New Pasta Meals at Larchmont Farmers Market;
Newgate Farms Offers Great Produce Specials;
Bring Dad to the Farmers Market + MORE!

June 18-24th, 2015

What’s New, In Season, and On Sale This Weekend
$2 OFF when you buy 2 items: Frozen samosa, kofta, saag,
rajma, and/or chutneys
Bombay Emerald Chutney Co.

Caramelized Garlic Bread
Wave Hill Breads

Garlic Scapes
Dagele Brothers Produce

**NEW** Pasta Meals!
Lasagna, Stuffed Shells, Monacotti (enough for 2) Reg $12; now $10
Trotta Foods

Peas – Snow or Snap – $5/lb
Newgate Farm

Produce varieties: Arugula, Cilantro, Herbs, Scallions, and Lettuces
all $3/bunch or 2 for $5
Newgate Farm

Roman Focaccia – With or
without Rosemary
$5 each OR 3 for $10
Wave Hill Breads

Sausage Rolls Tourtiere
(Quebec Meat Pie)
Stone & Thistle Farm

Squash – Green or yellow – $2/lb
Newgate Farm

Strawberries
$7.50/qt (2 for $14) and $4/pint
Newgate Farm

Strawberry Rhubarb Pie
With Mead Orchard berries
Bread Alone

Strawberry Rhubarb Pies & Tarts
Both regular & gluten-free
Meredith’s Country Bakery

Strawberry Shortcake – made to order – this weekend only!
Newgate Farm

Steamers
Joseph Fisheries

Striped Bass
Joseph Fisheries

StrawberryBanner

​New Rochelle Farmers Market
 Larchmont Farmers Market
Rye Farmers Market
Fridays 8:30 am-2:30 pm
North Avenue at Huguenot Park,
in front of NRHS
 Saturdays 8:30 am-1:00 pm
Metro North parking lot off of Chatsworth Ave
Sundays 8:30 am-2:00 pm
Parking lot on Theodore Fremd Ave, behind Purchase St. stores


Headed elsewhere this weekend? Find other Down to Earth Markets: CLICK HERE for details.

Mortgage Rates at 4% | Cross River Real Estate

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Freddia Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving lower from the previous week’s new highs for 2015 while housing data was generally positive.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.00 percent with an average 0.7 point for the week ending June 18, 2015, down from last week when it averaged 4.04 percent. A year ago at this time, the 30-year FRM averaged 4.17 percent.
  • 15-year FRM this week averaged 3.23 percent with an average 0.5 point, down from last week when it averaged 3.25 percent. A year ago at this time, the 15-year FRM averaged 3.30 percent.
  • 1-year Treasury-indexed ARM averaged 2.53 percent this week with an average 0.2 point, unchanged from last week. At this time last year, the 1-year ARM averaged 2.41 percent.

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 links for theRegional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes
Attributed to Len Kiefer, deputy chief economist, Freddie Mac.

“Mortgage rates were down this week while housing data were generally positive. Although housing starts dropped 11.1 percent to a seasonally adjusted pace of 1.04 million units in May, housing permits surged 11.8 percent to its highest level since August 2007. Reinforcing this positive momentum, the NAHB housing market index rose 5 points in June, suggesting home builders are very optimistic about home sales in the near future.”

In the Horse Race for Millennials, is Renting Gaining on Buying? | Waccabuc Real Estate

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Apartment rents are rising rapidly, up 3.5 percent in 2015, then they are expected to moderate to 3.0 percent in 2016 and 2.7 percent in 2017, according to the Urban Land Institute.  But home sales prices are rising even faster, tipping the scales of the rent vs buy equation towards rentals in the dollar for dollar comparisons Millennials face, according to the latest national housing market index produced by Florida Atlantic University and Florida International University faculty.

As of the end of the first quarter of 2015, the housing market in the U.S. and all 13 cities in the index are trending either closer to renting being the superior option or strictly favoring renting over purchasing a home.

Three of the hottest real estate markets in the nation, Dallas, Denver and Houston, are clearly in rent territory, with property pricing out-pacing rents, meaning buyers should proceed with strong caution.

Seven more cities (Miami, Honolulu, Los Angeles, Pittsburgh, Portland, San Francisco and Seattle) are at or near the indifference point between ownership and renting. Here the spread between monthly rent payments and ownership payments appears to be at a point where neither ownership nor renting is statistically favored.

Four cities (Chicago, Cincinnati, Cleveland and Detroit) remain in strong buy territory with scores that have historically favored wealth accumulation through home ownership.

 

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http://www.realestateeconomywatch.com/2015/06/

Housing Starts Readjust | South Salem Real Estate

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May housing starts fell 11.1% from an elevated April to a seasonally-adjusted annual rate of 1.036 million units. The drop was broad based, falling 5.4% in single-family to an annual rate of 680,000 and multifamily falling 20.2% to 356,000. When viewed from a quarterly average, however, the first two months of the second quarter were better than the first quarter for both single- and multifamily starts: single-family up 9% and multifamily up 20%.
Furthering the upswing signals, building permits were up 11.8% to a seasonally-adjusted annual rate of 1.275 million, the highest since August 2007. The surge is concentrated in the Northeast where multifamily permits doubled from 130,000 per year to 264,000 per year and ahead of the 2014 rate of 64,000. Multifamily permit were also up in the Midwest (34%) but down in the South (-12.4%) and West (-8.1%).
Individual metropolitan permit data is available one month later than national figures and those data through April show substantial increases in multifamily permits over the same four month period in 2014 for New York metropolitan area (50%), Boston (56%), Pittsburgh (142%) and Albany (215%).
Single-family starts were up in every region when viewed from a two-month average and compared to the first quarter average. The Northeast was up 35.4% to a recent two-month average of 55,500 homes. The Midwest was up 26.1% to a recent average of 113,500 homes while the South made the smallest advance at 1.5% to 365,500 homes. The West was up 8.6% to a recent average of 165,000 homes.
Confirming an underlying advance, the NAHB/Wells Fargo Housing Market Index rose 5 points to 59 as builders increased their expectations for future sales.

Single-family Starts and Permits

 

 

 

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http://eyeonhousing.org/2015/06/

Home-builder confidence rises to nine-month high | Katonah Real Estate

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A gauge of confidence among home builders rose five points to 59 in June, hitting a nine-month high, according to National Association of Home Builders/Wells Fargo data released Monday. Economists polled by Dow Jones Newswires had expected a June result of 55.

Gauges of builders’ views on present and upcoming home sales each hit their highest level since late 2005, shortly before the housing bubble burst. Readings above 50 signal that home-construction companies, generally, are optimistic about sales trends, and June marks the 12th consecutive month of above-50 readings.

NAHB said a barometer of builders’ views on present sales of single-family homes rose seven points to 65 in June, while a gauge of their views on upcoming sales increased six to 69, and an index of prospective-buyer traffic rose five to 44.

 

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http://www.marketwatch.com/story/home-builder-confidence-rises-to-nine-month-high-in-june-2015-06-15

Mortgage Rates Up to 4.04% | #Bedford Real Estate

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Freddi Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates reaching new highs for 2015 with the average 30-year fixed-rate mortgage above four percent for the first time since November 6, 2014 when it averaged 4.02 percent.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.04 percent with an average 0.6 point for the week ending June 11, 2015, up from last week when it averaged 3.87 percent. A year ago at this time, the 30-year FRM averaged 4.20 percent.
  • 15-year FRM this week averaged 3.25 percent with an average 0.6 point, up from last week when it averaged 3.08 percent. A year ago at this time, the 15-year FRM averaged 3.31 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.01 percent this week with an average 0.4 point, up from last week when it averaged 2.96 percent. A year ago, the 5-year ARM averaged 3.05 percent.
  • 1-year Treasury-indexed ARM averaged 2.53 percent this week with an average 0.2 point, down from last week when it averaged 2.59 percent. At this time last year, the 1-year ARM averaged 2.40 percent.

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 links for theRegional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes
Attributed to Len Kiefer, deputy chief economist, Freddie Mac.

“Mortgage rates rose above 4 percent for the first time since November 2014 as Treasury yields surged. Markets are responding to strong employment data. In May, the U.S. economy added 280,000 jobs. Moreover, job openings surged to 5.4 million in April, up over 20 percent from a year ago.”

Distressed Sales: 10 Percent of Sales in April 2015 | Bedford Corners Real Estate

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In the monthly REALTORS® Confidence Index Survey, NAR asks REALTORS® about the characteristics of their last sale for the month. For reported sales for April 2015, distressed sales accounted for 10 percent of sales (10 percent in March 2015; 15 percent in April 2014). About 7 percent of reported sales were foreclosed properties, and about 3 percent were short sales.[1]

With rising home values and a declining foreclosure inventory (except for states with judicial foreclosures such as NY, NJ, CT), sales of foreclosed properties have declined as well. The decline in foreclosed properties on the market may help to explain to some degree why investment sales have generally been on the decline.

Foreclosed property sold at an average 20 percent discount, while short sales sold at an average 14 percent discount.  For the past 12 months, distressed properties in “above average” condition were discounted by an average of 9-11 percent, while properties in “below average” condition were discounted at an average of 15-20 percent. Having fewer foreclosures creates further pressure for prices to move up in the coming months.

 

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http://economistsoutlook.blogs.realtor.org/2015/06/03/distressed-sales-10-percent-of-sales-in-april-2015/