(Patrick Wong - Getty Images) Home builders received more good news Wednesday morning as sales of new single-family homes in September surged to their highest level in 2 1/2 years, the Census Bureau said.
New home sales grew 5.7 percent to a seasonally adjusted annual rate of 389,000 last month. The growth was a significant rebound after new home sales fell off in August to a revised rate of 368,000. That followed a two-year high of 374,000 in July — more indications that the new home market is recovering in fits and starts.

Sales were up 27.1 percent from September 2011.

The median sales price of a new home sold in September was $242,000, down from $256,900 in August. There were 145,000 new homes for sale at the end of September, up from 141,000 in August.

Earlier this month, the Census Bureau said that national housing starts rose 15 percent in September to their highest level since July 2008, while building permits soared 11.6 percent last month. The National Association of Home Builders also said earlier this month that builder confidence was at its highest level since June 2006.

from (CNNMoney) housing market is finally starting to get back on its feet

NEW YORK (CNNMoney) -- The long-battered housing market is finally starting to get back on its feet. But some experts believe it could soon become another housing boom.
Signs of recovery have been evident in the recent pick ups in home prices, home sales and construction. Foreclosures are also down and the Federal Reserve has acted to push mortgage rates near record lows.

Obama's economy

A look at where the economy stood when Obama took office and what's changed since.

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But while many economists believe this emerging housing recovery will produce only slow and modest improvement in home prices, construction and jobs, others believe the rebound will be much stronger.
Barclays Capital put out a report recently forecasting that home prices, which fell by more than a third after the housing bubble burst in 2007, could be back to peak levels as soon as 2015.
"In our view, the housing market had undergone a dramatic over-correction during the prior five years, resulting in pent-up demand for housing purchases that would spark a rapid rise in housing starts," said Stephen Kim, an analyst with Barclays, in a note to clients.
In addition to what Kim sees as a big rebound in building, he's bullish on home prices, expecting rises of 5% to 7.5% a year.
Related: Where housing is most (and least) affordable
Construction is expected to be even stronger, with numerous experts forecasting home construction to grow by at least 20% a year for each of the next two years. Some believe building could be back near the pre-bubble average of about 1.5 million new homes a year by 2016, about double the 750,000 homes expected this year.
"We think the recovery is for real this time around," said Rick Palacios, senior analyst with John Burns Real Estate Consulting. "If you look across the U.S. economy right now, there are only a handful of industries looking at 20-30% growth over the next 4-5 years, and housing is one of those."
Home builder stocks are up 162% in the last 12 months, led by a 250% jump at PulteGroup (PHM). Other leading builders including DR Horton (DHI), Toll Brothers (TOL), KB Home (KBH) and Lennar (LEN) have all seen their stocks more than double over that time. New orders at publicly-traded builders are up 30% since January, according to Kim.

U.S. homes are taking less time to sell than a year ago, reflecting more homebuyer demand and fewer bank-owned homes and other properties available for sale in some markets.

The National Association of Realtors said Wednesday that the median time a previously occupied home was listed for sale shrank in July to 69 days. That’s down from 98 days in the same month last year.

One-third of the homes purchased in July were on the market for less than a month, while one in five was on the market for at least six months. A home’s median time on the market has been declining steadily since January, the trade group said.

Between 2004 and 2005, the high-flying years of the housing boom, the median selling time of previously occupied homes was four weeks, NAR said. The supply of homes on the market averaged 4.3 months over the same period.

The July figures, which were derived from a monthly survey of the trade group’s real estate agents, are good news for sellers and come as the inventory of homes available for sale has been tightening.

Overall, there were 2.4 million previously owned homes for sale in July, down 24 percent in the past year. It would take about 6.4 months to exhaust that supply at the current sales pace. That’s just above the six-month inventory typical in a healthy economy and 31 percent below the 9.3-month supply in July last year.

One-third of the homes purchased in July were on the market for less than a month, while one in five was on the market for at least six months. A home’s median time on the market has been declining steadily since January, the trade group said.

Between 2004 and 2005, the high-flying years of the housing boom, the median selling time of previously occupied homes was four weeks, NAR said. The supply of homes on the market averaged 4.3 months over the same period.

The July figures, which were derived from a monthly survey of the trade group’s real estate agents, are good news for sellers and come as the inventory of homes available for sale has been tightening.

Overall, there were 2.4 million previously owned homes for sale in July, down 24 percent in the past year. It would take about 6.4 months to exhaust that supply at the current sales pace. That’s just above the six-month inventory typical in a healthy economy and 31 percent below the 9.3-month supply in July last year.

“A notable shortening of time on market began this spring, and this has created a general balance between homebuyers and sellers in much of the country,” said Lawrence Yun, the trade group’s chief economist.

Factoring out short sales — when a bank agrees to accept less than what the seller owes on their mortgage — the median time on the market for homes was around six to seven weeks, Yun said.

By comparison, excluding short sales, the median time on the market for homes hit 10 weeks in 2009, during the depths of the economic downturn. At the time, there was a 10-month supply of homes on the market, NAR said.

The trend in homes selling faster also is further evidence that the U.S. housing market is on the mend five years after the housing bubble burst.

The average rate on a 30-year fixed mortgage has been below 4 percent all year, helping to fuel more sales of new and previously owned homes. Sales of previously occupied homes jumped 10 percent in July from a year earlier. Sales of newly built homes, meanwhile, were up 25 percent in the same period.

Home prices also have begun to rise consistently, which could boost sales further in the months to come. The Standard & Poor’s/Case Shiller index for July showed the first year-over-year increase in home prices since September 2010.

Even so, the housing market has a long way to go to reach a full recovery. Some economists forecast that sales of previously occupied homes will rise 8 percent this year to about 4.6 million. That’s still well below the 5.5 million annual sales pace that is considered healthy.

One factor constraining the pickup in sales is many homes that would otherwise be on the market are being held back.

Some of those homes are bank-owned properties.

As of July, there were 1.47 million U.S. homes in some stage of the foreclosure process or owned by banks, according to foreclosure listing service RealtyTrac Inc. Of the 620,751 in lenders’ possession, only about 15 percent are listed for sale.

That’s helped trigger bidding wars and led to higher prices in markets like Las Vegas, where the inventory of bank-owned homes sank to a 6.2-month supply in June.

Many homeowners who would like to sell their home are not placing them on the market because they are worried home prices might dip again. Others can’t sell because they are underwater on their mortgage, meaning they owe more than their home is worth.

In that scenario, the only way they can sell their home is through a short sale, in which a bank agrees to accept less than what is owed on the mortgage. In that case the seller makes nothing on the sale.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Home Appreciation News
Price appreciation/depreciation expected over the next four years:

• 2012: 2.31%
• 2013: 2.44%
• 2014: 3.25%
• 2015: 3.43%

Fiserv also released a report projecting home prices to appreciate at an average of 3.7% annually over the next five years.
The average pre-bubble (1987-1999) annual appreciation was 3.6%

Is This The House For Me?

Buying a house is likely the single largest investment you'll make and, like a good marriage, if it's the right one, it may last a lifetime. But how can you be confident in your home buying, especially if you're a first-time buyer? With so many homes to choose from, how do you know if this house is the one?

Sounds like a dating question. And, coincidentally, using some of the same techniques used to determine if you're marrying the right person may also help you decide which home is the best for your needs. These days more buyers are coupling up – buying homes together (even if they're not in a relationship) to offset the cost and be able to afford more.

You've heard of buyers' remorse and you know you sure don't want it. Sometimes fearing buyers' remorse can actually lead to buyers' inactivity. They become afraid and so they do nothing. They shop, they see, they even put offers in but in the end, they don't close. If you're a serious buyer, you don't want to get stuck in a cycle of looking and never owning.

So, how can you be confident that the home you're buying will meet your needs? Start with some basic guidelines. Make a list of your must-haves, needs, and wants. These are truly three different categories. Yes, some things you list may overlap but after your list is started, you'll begin to see what really matters to you. Sometimes buyers will be shopping for a home with a pool, but when they finally make a list they realize that money is very tight and the added cost of heating a pool will be too much of a drain. So they revise their home-buying desires and start house-hunting all over again. It would've been far more effective to have considered this from the start.

Next, study the home or apartment that you're currently living in. What are the positive aspects of it? Are there things about the place you live in now that you absolutely can't stand? Taking stock of what is working and what isn't in your current home provides a good blueprint for the things you should consider when searching for your next home. Remember to be honest. Sometimes we tend to forget the bad things about a home due to its sentimental value. If you look at your current home with a critical eye, you'll know which areas caused a big headache and then you can be sure you don't buy another with the same problem.

For instance, maybe the home needs a lot of fixing up and you and your spouse barely survived the remodel without tearing each other apart. You might then want to search for homes in much better condition to limit the fixing up. Our minds have a wonderful way of forgetting the bad, once the bad is over. But, trust me, you'll remember once you're back in the same scenario again.

Do your homework and get everyone's feedback. Unless you're buying a home alone, you should spend time meeting with those who will be living in the home to discuss what's important. Sounds obvious...yes, but guess what? A lot of times Buyer One and Buyer Two don't even talk about what's really important to each other until they start searching for homes. Then they realize how truly different their views and expectations are and see the necessity to compromise a little. Time is better spent reviewing and discussing first. That way, an agent can make sure the properties being shown are in line with everyone's desires.

Finally, plan ahead. Especially if you're moving a family or you're moving in with someone else. Use a synchronized calendar, like Google, to help map out all the meetings and showings. There will be lots of important meetings to attend and if you can't get the necessary buyers there, the process will be stalled. Without the necessary buyers present, you can't be confident the home will satisfy. Plan. Schedule. Commit. This will assure that the home-buying process will be a success

Need a reason to celebrate over the holiday weekend? July new home sales are up 25.3% and existing-home sales are up 10.4% over July 2011, according to the Commerce Department and the NAR. We still have a long way to go, but it's certainly nice to see some improvement.

Builder Confidence is up

Permits Up Strongly as Housing’s Recovery Takes Hold

Starts were down in July due to sagging single-family activity.

By 

Claire Easley

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"The market for new construction is back on track."

 

That’s the analysis from Patrick Newport, U.S. economist at IHS Global Insight, in response to the latest report on new-housing starts and permits from the U.S. Department of Commerce, released today.

Permits were up 6.8% in July, hitting an annual rate of 812,000, the best reading the industry has seen since August 2008. Single-family permits were up 4.5% for an annual rate of 513,000, and multifamily permits sprang up 11.2% for an annual rate of 299,000.

Housing starts moved down 1.1% in July, hitting an annual rate of 746,000, due to a 6.5% decline in single-family activity. Multifamily starts were up 12.4% for the month. However, "since housing starts tend to follow housing permits with a small lag, July’s decline in starts is nothing to worry about," Newport said.

"The recovery is mainly taking place in the South and West, with the multifamily segment coming back faster than the single-family segment," he said, but added that the pickup has thus far been sluggish and is expected to remain so for about another year. "Eventually, provided the economic recovery remains on track, the demographics will start to kick in—household formation will accelerate … and many young adults now living with parents will start moving out." As for when the industry can expect starts to top the 1.5 million mark, Newport’s prediction is 2015.

See the Commerce Department’s full release on July’s housing starts and permits numbers.

Claire Easley is a senior editor at Builder.

 

8 Signs Housing Is on the Mend

DAILY REAL ESTATE NEWS | MONDAY, AUGUST 06, 2012

Some Americans are still jittery over the housing market, but here are eight positive signs that should quell some of their fears. 

1. Housing prices are on the rise across the country.
2. Foreclosures have slowed. Analysts suggest that as the supply of distressed homes slows, buyers will be forced into higher-price properties too.
3. Inventories of for-sale homes on the market are decreasing. In fact, inventories of for-sale homes have dropped 24 percent from a year ago.
4. Mortgage rates are at ultra record level lows, for those who can qualify
5. Housing starts rose 6.9 percent in June. Also, existing-home sales were up 4.5 percent higher in June compared to one year ago. 
6. Home building stocks are on the rise.
7. For investors who are buying homes, rents are soaring, allowing them to cash in on their investments. Rental prices are at a 10-year high as median units rent for $710 a month.
8. Home affordability is at record highs for the median income family, due to falling home values and super low mortgage rates. In fact, a recent study found that it is cheaper to buy a home than rent in basically ever major city in the U.S. For those who buy, you can save the cost of renting by owning the home for five years or less.

But while the signs point to a housing market on the mend, some Americans still remain hesitant. Many Americans are still underwater on their mortgage, owing more on their home than it is currently worth. Also, the economy continues to weigh on the recovery, particularly a dampening employment outlook, which analysts see as tied to housing. 

Still, The Wall Street Journal concludes in a recent article that if you take into account all the positive signs lately in the housing market, “housing presents an attractive long-term investment that should hold steady or even have upside surprise in the short term.”

Hot Home Trends: What You Will And Won't See In New & Existing Homes

by Phoebe Chongchua

 

Even in difficult economic markets, homebuilders are still striving to deliver amenities that offer comfort, style, and functionality. But which amenities are popular these days has changed

According to the National Association of Homebuilders, (NAHB), you'll find that builders are figuring out the best ways to rework spaces. Out go formal dens and in come smaller home management areas (think office but not quite as spacious or traditional, more like a "pocket office". A "pocket office, according to NAHB, can be located in a large pantry area or nearby the kitchen or family great room. It's all about conserving and creating efficient workable spaces that also offer other functions.

Along the lines of making things more efficient, laundry facilities are now being placed near the "master bedroom's walk-in closet", writes the NAHB in a press statement.

Watch for shadow units–separate units that are built alongside the main home that conveniently accommodate other residents (like elderly parents) but still offer access to the main floor plan through a door connected to the unit. Also becoming increasingly popular are two master suites in one home. Typically one suite is located on the ground floor to ease the access for elderly occupants.

Perhaps a bit of Zen-like influence, homes are mixing materials such as metal, wood, and stone, creating a modern look in the home's façade. But the once common rectangular-shaped home is taking on new shapes and fewer roof lines. NAHB, says that homes will be "visually stimulating" and make use of as much natural light as possible. For instance, in a corner area builders are placing two windows to allow "unobstructed views and maximum light to come in".

Instead of a rectangle, you'll notice that the family triangle area is becoming the norm. An open triangular floor plan creates room for residents to have their own space in the family triangle area. Lighting and architectural detail are vital in order to keep the family triangle area from appearing cramped or like it's just a large room. When effectively designed the home can have an eating area, a kitchen, and a sitting area all in the family triangle and look and feel as though it has some separation from the different areas. However, homes will still have some private areas that offer a place for residents to get away to work alone.

Kitchens are still one of the most important rooms in the house. Becoming not only more popular but also necessary are walk-in pantries. These large pantries sometimes have a little kitchen desk inside–perfect for making notes about what's needed from the market. They generally have room for a laptop and paperwork and it's all out of view from guests in the main kitchen area.

Of course, outdoor living spaces are becoming more desirable especially in areas where the climate is mild year round. In the past, I've written about how homeowners are bringing the indoors out by creating living-room like areas outside. However, the trend of building big outdoor kitchens is on the decline. It seems that while homeowners want more livable space to relax on their outdoor couch, the outdoor kitchen is one area that homeowners feel they can live without.

Good design, efficiency, and functionality top the list of things that builders are aiming for and homeowners are hoping for. (Plus, of course, affordability.)
Published: July 13, 2012

This could be the best time in a generation to buy a home

This could be the best time in a generation to buy a home. Here’s why:

Housing affordability is the best it has been in decades.

Nationwide, average home prices are approximately one-third lower today than at their peak in 2006.

The cost to buy is very often less than the cost to rent a comparable property. In fact, buying is cheaper than renting in 98 out of America’s 100 major markets.

Interest rates are at an historic low, and today’s low rates can be locked in for the next 30 years.

The general economy appears to be improving, with employment increasing, median wages rising, and little indication of possible inflation.

Overall, conditions indicate today may be the perfect time to buy a home.

If you’re curious to see what’s currently for sale in your area of interest, start your search at www.a-team-homes.com

“More than 60% of remodelers reported increased demand for repairs and replacements of old components in the past two years, while more than half of remodelers said that the desire for upgraded amenities increased,” the survey found. “In contrast, more than 20% of remodelers said there was a decrease in customers remodeling to increase home values as an investment.”
Kitchen and bathroom projects remain the most popular remodeling jobs, with home owners increasingly upgrading both rooms and making major repairs as they decide to stay in their current homes longer. Nearly 50% of remodelers report seeing an increase in the number of home owners who undertake remodels to avoid moving compared to last year.

The other projects remodelers cited as most in demand right now:

• Window/door replacements (44%)

• Whole-house remodels (35%)

• Room additions (33%)

• Handyman services (31%)

Read more: http://www.houselogic.com/news/home-improvement/home-fix-ups-more-popular-upgrades/#ixzz1xJKpQMSI

Record-Setting Low Fixed Mortgage Rates Persist MCLEAN, Va., June 7, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates falling to new all-time record lows for the sixth consecutive week amid weak economic and job data helping to keep homebuyer affordability high. News Facts 30-year fixed-rate mortgage (FRM) averaged 3.67 percent with an average 0.7 point for the week ending June 7, 2012, down from last week when it averaged 3.75 percent. Last year at this time, the 30-year FRM averaged 4.49 percent.  15-year FRM this week averaged 2.94 percent with an average 0.7 point, down from last week when it averaged 2.97 percent. A year ago at this time, the 15-year FRM averaged 3.68 percent.  5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.84 percent this week, with an average 0.7 point, the same as last week. A year ago, the 5-year ARM averaged 3.28 percent. 1-year Treasury-indexed ARM averaged 2.79 percent this week with an average 0.4 point, up from last week when it averaged 2.75 percent. At this time last year, the 1-year ARM averaged 2.95 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 Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Go Vertical

 


No space for a garden? Go vertical. Green walls can improve air quality, cut energy costs, and provide a habitat for desirable wildlife. Be artistic with your herbs and veggie Just serch vertical gardening in google and start having fun. I'm starting mine now.

Maintaining Your Home to Retain Value

You've got the kitchen of your dreams and a master bedroom suite that would look right at home in a 5-star hotel. And your gorgeous new exterior paint job is the envy of the neighborhood. Your place looks so great that real estate agents are dropping off their cards telling you how much they could sell your place for, if you felt like putting it on the market.
Sell it now! Good grief no! Not after all the remodeling work. But... who knows? In five or six years when the kids are off to college and you and your mate get tired of mowing that big lawn and knocking around in a house built for five but inhabited by two, a downtown condo may look pretty inviting. Face it. At some point in the future, whether it's next year or in 20 years, you're going to want to sell your house. And with all the improvements you've made over the years, you should get a nice return on the sale, assuming you don't let your house fall apart.
Remodeling can be frustrating but it's also fun -- filled with anticipation and visible rewards at the end of the project. Maintenance is dull and routine, but you have to do it if you want to retain the value you've added to your home. For example: Hardwood floors need to be refinished every 5-10 years depending on wear and tear. If they get too worn down you can do permanent damage to the wood. Exteriors need to be repainted every 5-10 years too, depending on such factors as the weather where you live, or you can damage the exterior wood. Your roof and gutters need annual inspections. A clogged or damaged gutter and drain spout can flood your basement and cause serious damage.
And the list goes on. Like taxes and dental checkups, regular home maintenance isn't fun. But you must do it if you want to take care of what is likely your biggest single asset -- your home.

Annual checklist home maintenance checklist:

• Kitchen: Check for leaks under and around the sink. Plumbing leaks can damage cabinetry and floors. Check and repair grout and caulking on tile countertops and around the sink. Also check wear and tear on wood floors, which periodically need to be refinished.
• Bathrooms: Check for plumbing leaks and check grout on tiles. If the grout gets worn away water will start getting into the walls behind the bathroom, causing damage.
• Basement: Check for cracks in the foundation and leaks. Buildings settle over time and even after decades of having a dry basement leaks may suddenly occur.
• Attic: Check for signs of water leakage from the roof. Also look for any sign of termites or rodents. Squirrels or rats that nest in your attic can chew electrical wiring, which can lead to fires.
• Smoke alarms: Batteries need to be changed annually.
• Heating system: If yours has a filter, change it annually.
• Air conditioning system: Change all filters monthly or as recommended by the filter manufacturer.
• Roof: Note if any shingles have fallen off or if gutters or downspouts appear clogged or damaged. You can always hire a reliable roofing company to get on the roof and take a look. Reputable roofing companies won't try to sell you a new one unless you really need it. You can simply pay them for an inspection.
• House exterior: If your house is wood, check that the paint hasn't worn away so much that the primer paint is showing. If the primer also wears down, you can do damage to the wood. Brick houses should be inspected for damaged bricks or masonry. Check stucco houses and repair any cracks large enough to slide a nickel into.
• Asphalt and concrete driveways: Repair any cracks or buckling.

Mortgage Points

Mortgage Points: When It's Smart to Pay More Upfront

Pay more now for a chance to save much more later? That's the idea behind paying "points" on a mortgage loan. But it doesn't necessarily make sense for every homeowner.

Mortgage points provide an opportunity for borrowers to lower their monthly mortgage payments by paying a lump sum at a loan's closing in exchange for a lower mortgage interest rate over the course of a loan.

Mortgage points are a smart option for borrowers who plan to stay in the same mortgage and not refinance for a relatively long period of time. But points are not recommended for borrowers who are likely to relocate or refinance in the not-so-distant future.

Borrowers pay points in order to lower their mortgage interest rates by a certain amount. The cost of one point is equal to one percent of the mortgage amount. In the case of a 30-year fixed-rate mortgage, paying one point will typically lower your interest rate by somewhere around one eighth of a percent, according to Tim Dwyer, chief executive officer of Entitle Direct, a title insurance company.

So if borrower A paid one point on a $200,000 mortgage with what would have been a 4 percent interest rate, she would lower her interest rate to 3.875 percent (4 percent -- 1/8th percent) for the cost of $2,000.

A good way of looking at points is to view them as an investment that "yields a return for the longer you stay in your house," mortgage expert Jack Guttentag writes.

If Borrower A stays in the same mortgage for only a few years before selling her home or refinancing, she may end up not saving enough in monthly payments to justify paying the $2,000 upfront. But if she stays in the mortgage for a longer period of time, she eventually breaks even on her investment and enjoys saving money every month from there on out.

"If the points are reasonable, I want to pay that upfront and enjoy the interest rate savings over 10 years because I know I'm not going to refinance," Dwyer says. But if "you're a young couple" and "you know you're going to have more babies, you know you're going to be moving out," then you should avoid paying points.

Banks may offer 10 or more point combinations on any given loan, Guttentag writes, and borrowers often don't end up selecting the option that aligns most with their interests, simply out of ignorance. You can use a point calculator to find out how long it would take to break even using different point combinations.

In a perfect world, borrowers would pay points only if it benefited them in the long run. But, in fact, many borrowers pay points out of necessity. Why?

Lenders will only allow borrowers' monthly mortgage payments to equal up to a certain percentage of their monthly income. Often they will only approve loans for borrowers whose monthly mortgage payments would not exceed 28 percent of a borrower's monthly income.

Paying points allows a borrower who otherwise wouldn't qualify for a loan because of income limitations to lower his or her monthly payment to the extent that the bank is willing to make the loan.

Some banks offer "negative points," a rebate paid by lenders toward a borrower's closing costs. "Negative points" lower closing costs for a mortgage, but raise its monthly interest rate. They can be a good option for borrowers who are hard-pressed to cover closing costs with zero points or who intend on moving or refinancing in a few years.

By Teke Wiggin

April Existing-Home Sales Up, Prices Rise Again
WASHINGTON (May 22, 2012) – Existing-home sales rose in April and remain above a year ago, while home prices continued to rise, according to the National Association of RealtorsÒ.  The improvements in sales and prices were broad based across all regions.
Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 3.4 percent to a seasonally adjusted annual rate of 4.62 million in April from a downwardly revised 4.47 million in March, and are 10.0 percent higher than the 4.20 million-unit level in April 2011.
Lawrence Yun, NAR chief economist, said the housing recovery is underway.  “It is no longer just the investors who are taking advantage of high affordability conditions.  A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices,” he said.  “The general downtrend in both listed and shadow inventory has shifted from a buyers’ market to one that is much more balanced, but in some areas it has become a seller’s market.”
Total housing inventory at the end of April rose 9.5 percent to 2.54 million existing homes available for sale, a seasonal increase which represents a 6.6-month supply2 at the current sales pace, up from a 6.2-month supply in March.  Listed inventory is 20.6 percent below a year ago when there was a 9.1-month supply; the record for unsold inventory was 4.04 million in July 2007.
“A diminishing share of foreclosed property sales is helping home values.  Moreover, an acute shortage of inventory in certain markets is leading to multiple biddings and escalating price conditions,” Yun said. He notes some areas with tight supply include the Washington, D.C., area; Miami; Naples, Fla.; North Dakota; Phoenix; Orange County, Calif.; and Seattle.  “We expect stronger price increases in most of these areas.”
The national median existing-home price3 for all housing types jumped 10.1 percent to $177,400 in April from a year ago; the March price showed an upwardly revised 3.1 percent annual improvement.  “This is the first time we’ve had back-to-back price increases from a year earlier since June and July of 2010 when the gains were less than one percent,” Yun said.  “For the year we’re looking for a modest overall price gain of 1.0 to 2.0 percent, with stronger improvement in 2013.”
Distressed homes4 – foreclosures and short sales sold at deep discounts – accounted for 28 percent of April sales (17 percent were foreclosures and 11 percent were short sales), down from 29 percent in March and 37 percent in April 2011.  Foreclosures sold for an average discount of 21 percent below market value in April, while short sales were discounted 14 percent.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said home buyers should look into financing in the early stages of their search process.  “With the tight lending environment it’s a good idea to consult with a Realtor® about mortgages and program options in your area, and tips for boosting your credit score well in advance of making an offer on a home,” he said.  “It helps to go into the process knowing what it takes to succeed.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage declined to 3.91 percent in April from 3.95 percent in March; the rate was 4.84 percent in April 2011.  Last week the 30-year fixed rate dropped to a record weekly low of 3.79 percent; recordkeeping began in 1971.
First-time buyers rose to 35 percent of purchasers in April from 33 percent in March; they were 36 percent in April 2011.
All-cash sales fell to 29 percent of transactions in April from 32 percent in March; they were 31 percent in April 2011.  Investors, who account for the bulk of cash sales, purchased 20 percent of homes in April, compared with 21 percent in March and 20 percent in April 2011. 
Single-family home sales rose 3.0 percent to a seasonally adjusted annual rate of 4.09 million in April from 3.97 million in March, and are 9.9 percent higher than the 3.72 million-unit pace a year ago.  The median existing single-family home price was $178,000 in April, up 10.4 percent from April 2011.
Existing condominium and co-op sales increased 6.0 percent to a seasonally adjusted annual rate of 530,000 in April from 500,000 in March, and are 10.4 percent above the 480,000-unit level in April 2011.  The median existing condo price was $172,900 in April, which is 8.1 percent above a year ago.
Regionally, existing-home sales in the Northeast rose 5.1 percent to an annual level of 620,000 in April and are 19.2 percent higher than a year ago.  The median price in the Northeast was $256,600, up 8.8 percent from April 2011.
Existing-home sales in the Midwest increased 1.0 percent in April to a pace of 1.03 million and are 14.4 percent above April 2011.  The median price in the Midwest was $141,400, up 7.4 percent from a year ago.
In the South, existing-home sales rose 3.5 percent to an annual level of 1.79 million in April and are 6.5 percent higher than a year ago.  The median price in the South was $153,400, up 8.0 percent from April 2011.
Existing-home sales in the West increased 4.4 percent to an annual pace of 1.18 million in April and are 7.3 percent above April 2011.  The median price in the West was $221,700, a surge of 15.9 percent from a year ago.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.