Pending Home Sales Down For Third Month

Pending home sales fell for a third consecutive month in August, with three of the four regions seeing month-over-month declines, according to the National Association of Realtors. The Pending Home Sales Index dropped by 2% between July and August. Year-over-year it tanked by 24.2%. All four regions saw pending sales drop year-over-year. The West, however, experienced a small uptick month-over-month, up by 1.4%. The Northeast PHSI fell by 3.4% from July, while the South fell 0.9% and the Midwest dipped by 5.2%. “The direction of mortgage rates – upward or downward – is the prime mover for home buying, and decade-high rates have deeply cut into contract signings,” said NAR Chief Economist Lawrence Yun. “If mortgage rates moderate and the…

Luxury Home Sales See Biggest Dip Since 2012

Luxury home sales tanked by 28.1% YOY in the three months ending August 31, the biggest drop since 2012, according to new Redfin data. The decline overtook even the 23.2% drop that happened at the beginning of the pandemic, when home sales slowed to a crawl in every area. Non-luxury home sales also fell by the largest margin on record, but in a far less dramatic drop of 19.5%, a change of 0.5%. The same stressors that are beating down the non-luxury market are impacting high-end buyers: low inventory, rising rates, and economic uncertainty. “High-end-house hunters are getting sticker shock when they see the impact of rising mortgage rates on paper. For a luxury buyer, a higher interest rate can…

Existing Home Sales Down 0.4% In August

Existing-home sales dropped for the seventh straight month in August, down 0.4% from July and 19.9% YOY, according to the National Association of Realtors’ most recent data. Sales fell to a seasonally adjusted annual rate of 4.80 million and declined in every major region. Inventory of unsold homes fell 1.5% from July to 1.28 million, breaking a five-month streak of increases. This is a 3.2 months supply at the current sales pace. “The housing sector is the most sensitive to and experiences the most immediate impacts from the Federal Reserve’s interest rate policy changes,” said NAR Chief Economist Lawrence Yun.  “The softness in home sales reflects this year’s escalating mortgage rates. Nonetheless, homeowners are doing well with near nonexistent distressed…

July New Home Sales Down 12.6% MoM

New home sales fell in July to a seasonally adjusted annual rate of 511,000, down 12.6% from June and 29.6% YOY, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. The massive dropoff can be attributed to the rising cost of buying a home. Home price appreciation and increasing interest rates are pricing potential buyers out of the market. Between rates and prices, the monthly mortgage payment on a typical US home is 62% higher than a year ago. Meanwhile, some sellers are opting not to put their homes up for sale, exacerbating the stock shortage and driving up competition. About half of all homeowners have a rate under 4% and are disinclined…

Home Sales Fall Nearly 20% YOY

Buyers are still fleeing the market in droves despite signs of cooling, driven out by rising mortgage rates and economic uncertainty. Home sales fell by 19.3% YOY in July, hitting their lowest level since the pandemic started, Redfin reported. It’s the biggest annual decline in U.S. home sales in more than a year. Sales also fell 4.1% from June. Redfin noted that while affordability challenges pushed some buyers out, others were concerned about the potential for home-value declines. Home price appreciation rose at its slowest pace since June 2020, up only 7.7%, and talk of price correction is everywhere. Fewer homeowners put their homes on the market, too. New listings fell 13.5% YOY, the biggest decline in more than a…

Competition For Low-Priced Homes Heats Up

In a reversal of a pandemic trend, competition for low-priced homes has surpassed that for mid- and high-priced homes, according to a new Zillow analysis. July saw inventory rise 11% month-over-month and  19.3% YOY in the most expensive third of the housing market, while the middle third also saw a 12.7% MOM and 17.3% YOY increase. Inventory grew by only 11.2% MOM and 10.4% YOY in the lowest-priced tier. A year ago, the inventory of the lowest-priced homes was growing twice as fast as expensive homes, and the upper tiers saw the strongest competition, the reverse of this month’s trend. “Buyers are stretched thin when it comes to affordability, and they are flocking to the lowest-priced homes on the market…

Existing-Home Sales Slip For 3rd Month Straight

April’s existing-home sales slipped for the third consecutive month, falling 2.4% from March to a seasonally adjusted rate of  5.61 million, the National Association of Realtors (NAR) reported. Sales were down 5.9% year-over-year, with each of the four major regions seeing declines. The median price for existing homes of all types was $391,200, up 14.8% YOY. This is the 122nd consecutive month of YOY price growth, the longest-running streak on record. “Higher home prices and sharply higher mortgage rates have reduced buyer activity. It looks like more declines are imminent in the upcoming months, and we’ll likely return to the pre-pandemic home sales activity after the remarkable surge over the past two years,” said Lawrence Yun, NAR’s chief economist. Housing…

Morning Roundup (4/21/2022)– Monthly Payments Up, Home Sales Down

Good Morning! Today is Thursday, April 21. Russia test-launched a new intercontinental missile that it said could carry several nuclear warheads. The federal government charged 21 people in Medicare fraud schemes, including selling fake vaccine cards and test results. The Mortgage Note Reports “Plenty Of Fuel In The Tank”: Monthly mortgage payments on the typical U.S. home are 19.5% higher than they were three months ago, but demand just keeps growing. Existing Home Sales: Existing-home sales fell for the second straight month in March, down 2.7% from the prior month and 4.5% from a year ago.  And in other mortgage and housing news… Blend Layoffs: Mortgage tech company Blend has laid off 10% of its workforce. BOA Settlement: HUD signed a Conciliation Agreement with Bank of America to resolve…

Morning Roundup (4/15/2022)– Home Sales Offer “Early Signs Of A Slowdown”

Good Morning! Today is Friday, April 15. A judge ordered the suspect in the Brooklyn subway shooting to be detained until his trial. Elon Musk made a bid to buy Twitter for about $43 billion. The company’s board is considering a plan to thwart him. A Russian warship sank in the Black Sea. The Mortgage Note Reports “Early Signs Of A Slowdown”: Home sales dropped by 4% last month and 8% YOY, closing out the hottest March ever with signs of a potential cooldown. Historic Rates: Mortgage rates averaged 5% for the first time in a decade last week. Spread The Word: Do you enjoy our newsletter? Share this email with a friend so they can visit our website and…

Morning Roundup (2/3/2022)– Millennial Domination, Home Values Record

Good Morning! Today is February 3, 2022. The U.S. is deploying 3,000 more troops to Eastern Europe. The Army said it would immediately discharge unvaccinated soldiers. Jeff Zucker resigned as the president of CNN over a romantic relationship with an executive. The Mortgage Note Reports Millennial Domination: Despite challenging conditions for first-time homebuyers, Millennials make up a majority of homebuyers in most of the US’s largest metros, especially Denver, Seattle, and Boston.  Home Value Record: December 2021 saw a record annual surge in U.S. home value led by Austin, TX, which saw total home values equivalent to the 2020 GDP of Ecuador. And in other mortgage and housing news… Love In The Air: A survey from Zillow found 34% of…