Sales of Existing Homes Rise Slightly as More Listings Finally Hit the Market

2090 Roberts Mountain Rd, Roseburg, OR 97470
Presented by Maria Abarca Roberts | Offered at $3,500,000 | MLS# 21363285

From cnbc.com

After four straight months of declines, sales of previously owned homes rose 1.4% in June month to month to a seasonally adjust annualized rate of 5.86 million units, according to the National Association of Realtors.

These sales represent closings, so they are based on contracts signed in April and May.

Sales were 22.9% higher compared with June 2020. That annual comparison, according to the Realtors, is still slightly skewed due to Covid pandemic lockdowns in certain parts of the country that lasted into summer last year.

The inventory of homes for sale at the end of June was 1.25 million, representing a 2.6-month supply at the current sales pace. That is a slight improvement from May’s 2.5-month supply.

“We may have turned a corner on inventory,” said Lawrence Yun, NAR’s chief economist. “There is some softening in the demand.”

Low inventory continues to put pressure on prices. The median price of an existing home sold in June hit an all-time high of $363,300. That was 23.4% higher than the price in June 2020. Much of that gain, however, is skewed due to the types of homes that are selling. Sales of homes priced between $100,000 and $250,000 fell 16% annually. Sales of homes priced between $750,000 and $1 million jumped 119%.

“At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year,” Yun said. “Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available.”

Price gains could start to cool. New listings spiked 9% last week, compared with the same week one year ago, according to Realtor.com. Inventory saw its 15th straight week of tapering declines.

“Although more sellers entered the market last week, homebuyers may understandably feel frustrated with the continued shortage of affordable homes for sale,” said Danielle Hale, Realtor.com’s chief economist, in a release. “The uptick in new listings offers a ray of hope for buyers trying to find a home and lock in still-low mortgage rates. With the public widely in agreement that now is a good time to sell, we may see even more new sellers in the coming weeks and the end of inventory declines before we finish out the year.”

Mortgage rates in April and May, when these contracts were signed, were slightly lower than in March. They moved within a very narrow range during the months, so they would likely not have played a role in prompting buyers to get in or pull out of the market.

Buyers are also seeing more competition from investors. They represented a 14% share of all sales, compared with just 9% one year ago. In addition, all-cash purchases, which are largely investors, rose to 23% of sales, up from 16% one year ago.

Full article at cnbc.com


Home Sales are Beginning to Stall as Buyers Hit Their Limit

56644 Little River Court, Bend, OR 97707
Presented by Jenn Schaake | Offered at $1,850,000 | MLS# 220119613

From housingwire.com

Home sales fell 1.2% from May to June, the largest drop at this time of year on record since at least 2012, according to a new Redfin study released this week.

The national median home-sale price hit a record high of $386,888, up 25% year over year, but a slight decline from the record of 26% in May. The number of homes for sale fell 28% year over year from 2020, and the typical home sold in just 14 days — a record low and, down from 39 days in June 2020.

Homes sold for their highest prices and at their fastest pace on record, but measures for market speed and competition seem to be at or near peak levels for this year, said Daryl Fairweather, Redfin’s chief economist.

“In June we entered a new phase of the housing market,” Fairweather said. “Home sales are starting to stall because prices have increased beyond what many buyers can afford. This summer I expect home prices to stabilize as more homeowners list their homes, realizing they likely won’t fetch a higher price by waiting longer to sell.”

Fifty-six percent of homes sold above their list price — another record high, up from 27% a year ago. And the average sale-to-list ratio hit 102.6% in June, meaning homes are selling on average 2.6% above asking price.

Regionally, seasonally adjusted active listings fell 28% year over year to their lowest level on record, and only two of the 85 largest metros tracked by Redfin posted a year-over-year increase in the number of seasonally adjusted active listings of homes for sale: Milwaukee (+4%) and New York (+1%). The biggest year-over-year declines in active housing supply in June were in Baton Rouge, Louisiana (-57%), North Port, Florida (-52%) and Greensboro, North Carolina (-46%).

Median sale prices, however, increased from a year earlier in all of Redfin’s 85 largest markets. The largest price increase was in Austin, Texas (+43%), where a typical three-bedroom, two-bathroom suburban home sold for about $485,000 last month — up from about $340,000 a year earlier, according to Jennifer Hoffer, Redfin’s market manager in Austin.

“Home price growth over the last few months in Austin has been astronomical,” Hoffer said. “There has been a perfect storm of factors driving up price here with tech firms like Tesla, Amazon and Oracle announcing expansions in Austin, celebrities relocating here, and overall a whole lot of really great press for the area.”

The next biggest price increases were seen in Lake County, Illinois (+31%) and Phoenix (+30%). The smallest price increase was posted in San Francisco, where prices were up only 2.6% from a year ago.

Finally, new listings fell from a year ago in 15 of the 85 largest metro areas. The biggest declines were in Baton Rouge, Louisiana (-51%), Allentown, Pennsylvania (47%) and St. Louis, Missouri (-41%). New listings rose the most from a year ago in San Jose, California (+38%), Tacoma, Washington (+35%) and Milwaukee, Wisconsin (+32%).

Full article at housingwire.com


More Homes, Fewer Buyers: The U.S. Housing Market Is Starting to Stabilize

1750 SW Westpoint Ct, Portland, OR 97201
Presented by Dennis Coxen | Offered at $1,839,000 | MLS# 21229026

From Mansion Global

The lopsided housing market in the U.S. is starting to right itself, albeit slowly, according to a report Friday from Redfin.

New listings for homes rose 4% in the four weeks ending July 4, compared to the same time last year, the data found. They were also up 3% from the same four weeks in 2019, marking the first time new listings exceeded the 2019 levels since the beginning of the year.

At the same time, pending home sales had their smallest year-over-year jump —17%—in close to a year, the data showed. Pending sales were also down 6% compared to the four-week period ending May 30.

“Many buyers have backed away from the housing market and are waiting until more and better homes are listed,” Daryl Fairweather, Redfin’s chief economist, said in the report. “Buyers don’t have the same sense of urgency that they did at the beginning of the year.”

That’s because mortgage rates have dropped to below 3%, with no immediate signs of rising, and asking prices are starting to stabilize, she added.

“With more new listings starting to come on the market, buyers who threw in the towel may want to look again because the market is tilting more in their favor,” Ms. Fairweather continued.

But make no mistake, for now, it’s still a seller’s market.

The median home price reached yet another record high, hitting $364,430 for the four weeks ending July 4, a year-over-year increase of 22%, according to the report. Asking prices rose 12%, compared to the same four weeks in 2020.

The median home spent 15 days on the market for the four-week period, down from 39 days at the same time last year, Redfin found. That number has been flat for the past month.

In addition, 55% of homes sold for above their asking price, the data showed. That’s a year-over-year increase of 27%, the highest jump since Redfin began tracking the data in 2012.

Full article on Mansion Global


Contract Signings Surge as Home Buyers Remain Eager

16440 Fair Mile Road, Sisters, OR 97759
Listed by Patty Cordoni & Suzanne Carvlin | Offered at $1,900,000 | MLS# 220118039

From REALTOR® Magazine

Pending home sales bounced back strongly in May and surged to the highest reading for the month of May since 2005, the National Association of REALTORS® reported Wednesday.

NAR’s Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings, climbed 8% in May compared to April. Contract signings are up 13.1% compared to a year earlier.

“May’s strong increase in transactions—following April’s decline, as well as a sudden erosion in home affordability—was indeed a surprise,” says Lawrence Yun, NAR’s chief economist. “The housing market is attracting buyers due to the decline in mortgage rates, which fell below 3%, and from an uptick in listings.”

Buyers are shaking off record-high home prices and low inventories of homes for sale. Housing inventories are down 20.6% compared to a year ago. Also, the median existing-home price for all housing types posted a record year-over-year increase of 23.6% in May, according to NAR data. The median home price was $350,300.

“While these hurdles have contributed to pricing out some would-be buyers, the record-high aggregate wealth in the country from the elevated stock market and rising home prices are evidently providing funds for home purchases,” Yun says. “More market listings will appear in the second half of 2021, in part from the winding down of the federal mortgage forbearance program and from more home building.”

Yun also predicts that home price growth will gradually moderate as more homes are listed on the market. “But a broad and prolonged decline in prices is unlikely,” Yun says. “However, if a reduction occurs in some markets, home buyers will view the lower home price as a second chance opportunity to get into the market after being outbid in previous multiple-bid market conditions.”

All four major regions of the U.S. posted month-over-month and year-over-year gains in contract signings last month, NAR reported. The Northeast increased 15.5% in May, a 54.6% climb from 2020. In the Midwest, sales increased 6.7% monthly and 7.8% year over year. The South reported a 4.9% increase, 6.1% increase year over year. The West increased 10.9%, up 12.5% year over year.

Full article on REALTOR® Magazine