Tag Archives: Home Prices

Home "flips" accounted for 3.7 percent of all home sales in the first quarter, RealtyTrac reported Thursday—indicating investors are cooling as the market continues to change shape. "Slowing home price appreciation early this year in many of the most popular flipping markets put some investors in danger of flying too close to the sun," said Daren Blomquist, VP at RealtyTrac.

Homes continue to fly off the market at a quick pace, according to March data released by Redfin. In March, across the 20 metros measured by Redfin, median days on the market fell by more than a week to 32 days, dropping from 40 days in February. Compared to last year's figure of 35, homes are selling three days faster on average. The company's analysis found that 29.8 percent of homes went under contract within two weeks of being listed.

One way the federal government has accounted for local market differences is through the conforming loan limit: the maximum amount of a home loan that Fannie Mae and Freddie Mac can guarantee. However, according to Trulia chief economist Jed Kolko, this current system falls far short of reflecting the actual differences in local home prices and ends up favoring borrowers in lower-cost markets.

Home prices as measured by S&P Dow Jones performed more or less as expected in February, with annual growth rates continuing to slow. The S&P/Case-Shiller Home Price Indices shows prices among 20 of the nation’s biggest markets grew 0.8 percent on a seasonally adjusted basis in February, matching January’s rate of growth. Unadjusted, the index was unchanged month-over-month.

Black Knight Financial Services released its Home Price Index (HPI), noting that home prices in the U.S. rose 0.7 percent for the month of February to an average of $233,000. Black Knight's report falls between last week's FHFA House Price Index and the S&P Case-Shiller index(slated for release Tuesday), offering a more well-rounded view of market trends for the spring and upcoming summer months.

According to the Warren Group, statewide sales dropped 7.8 percent to 2,749 in March, down from 2,980 from the previous year. Home sales in the first quarter were down overall 2.4 percent to 7,557 from 7,745 in last year's first quarter. Timothy J. Warren Jr., CEO of the Warren Group, said, “The low inventory of single-family homes in the market is the primary cause of the decreasing sales activity. Motivated buyers, however, are eagerly bidding for the limited supply which accounts for the increasing sales prices. People want to buy homes before prices and interest rates rise further.”

In March, 63.4 percent of offers written by Redfin agents across 19 markets faced competition from other buyers, the national brokerage reported. While that percentage is up a few points from February—owing in some part to more favorable weather—it’s a full 10 percentage points down compared to March 2013.

In a report issued earlier this week, Fitch Ratings announced it is tapering its forecast for 2014 in acknowledgement of what has so far been a “subpar spring selling season.” Sales of both new and existing homes in March fell short of expectations, dashing optimistic projections of a rebound following the end of an unusually harsh winter. Housing starts also disappointed as homebuilders remain concerned about the shape of the market.

On Thursday, RealtyTrac released its Residential & Foreclosure Sales Report, which showed modest gains in U.S. residential sales in March. The firm reported that March showed a 0.4 percent uptick in overall transactions compared to February and a full 8 percent increase over sales in March 2013. RealtyTrac’s data clashes with other reports released this week about March sales.

According to Florida Realtors, the state's housing market reported higher median prices, more new listings, and a stable level of inventory in March. For 28 months in a row now, statewide median sales prices have risen annually for single-family homes and condos. "What we're seeing is a market we can live with," said Florida Realtors chief economist Dr. John Tuccillo.