December Existing-Home Sales Up 1%

Author: Tory Barringer January 23, 2014

Existing-home sales finished 2013 with a slight increase, closing the book on the strongest year for sales since 2006, the National Association of Realtors (NAR) reported Thursday.

Total existing-home sales–including all completed transactions of single-family homes, townhomes, condominiums, and co-ops–increased 1.0 percent month-over-month to a seasonally adjusted annualized rate of 4.87 million last month. November’s sales rate was revised down to 4.82 million.

December’s sales were down year-over-year, coming up 0.6 percent short of December 2012’s pace of 4.90 million.

Removing all other types of sales, sales of existing single-family homes rose 1.9 percent from November to an adjusted annual rate of 4.30 million. Compared to the prior year, single-family sales were down 0.7 percent.

For all of last year, NAR estimates there were 5.09 million existing-home sales, a 9.1 percent improvement from 2012.

“Existing-home sales have risen nearly 20 percent since 2011, with job growth, record low mortgage interest rates and a large pent-up demand driving the market,” said NAR chief economist Lawrence Yun. “We lost some momentum toward the end of 2013 from disappointing job growth and limited inventory, but we ended with a year that was close to normal given the size of our population.”

While sales were up from November, it wasn’t new homeowners driving the increase: First-time buyers accounted for 27 percent of purchases in December, down from 28 percent in November and 30 percent in December 2012. All-cash sales–often reflective of investor activity–made up 32 percent of December transactions, unchanged from November and up from the previous year.

Even with prices and mortgage rates slated to rise, NAR president Steve Brown says sales should hold strong in 2014 as job numbers improve. That doesn’t mean the year won’t be without challenges, though.

“The only factors holding us back from a stronger recovery are the ongoing issues of restrictive mortgage credit and constrained inventory,” Brown said. “With strict new mortgage rules in place, we will be monitoring the lending environment to ensure that financially qualified buyers can access the credit they need to purchase a home.”

The national median existing-home price for all housing types in December was $198,000, up 9.9 percent year-over-year. A comparatively smaller share of distressed sales (14 percent compared with December 2012’s 24 percent) accounted for some of the price growth, NAR reported.

The median existing single-family home price was $197,900, up 9.8 percent from the year prior.

Local Markets Return to ‘Normal’

BY: KRISTA FRANKS BROCK

More than 35 percent of the more than 350 metro markets tracked in the National Association of Home Builders’ and First American’s Leading Markets Index are performing at 90 percent or higher of their pre-housing crisis norms, according to the latest Leading Markets Index.

Previously, NAHB and First American tracked markets based on their rate of growth in the Improving Markets Index. Instead, the Leading Markets Index compares each market to its pre-crisis norms in terms of current permits, prices, and employment.

Currently, 56 markets have turned the corner and returned to normal, up from 54 last month.

“More markets are slowly returning to normal levels and we expect this upward trend to continue as an improving economy and pent-up demand brings more home buyers back into the marketplace,” said Rick Judson, chairman of the NAHB.

A majority of the markets that are back to normal levels are smaller markets with populations of less than 500,000. Forty-eight of the 56 markets that are back to normal fall into this category, with many benefitting from strong energy sectors, which lead to strong employment.

Overall, metro markets across the nation are performing at an average of 86 percent of normal levels in terms of permits, prices, and employment, according to NAHB. Forty-five percent of metros are exceeding this rate.

Among large metros, Baton Rouge, Louisiana, in performing best, 42 percent better than its pre-crisis level. Oklahoma City, Oklahoma, Austin Texas, and Houston, Texas, are also at the top of the list of major metros.

Among smaller metros, two are performing at twice their pre-crisis level—Odessa, Texas, and Midland, Texas.

As markets continue to work their way back to normal and/or surpass their previous norms, Judson says, “Policymakers must be careful to avoid actions that would harm consumer confidence and impede the ongoing recovery.”

 

“Hunger Games” inspires children and teens to Georgia archery programs

Submitted by Jacqueline Harnevious, 13WMAZ Community Web Producer

Thursday, November 21st, 2013, 4:09pm

 

The second installment of the “Hunger Games”, called “Catching Fire”, hits theaters at midnight Friday.

The blockbuster movies are not only selling tickets. They’re persuading kids to pick up a hobby, that got its start in prehistoric times.

The archery bug bit Mark Swords and Jennifer Pittman long ago.

Pittman said, “I grew up hunting and fishing my entire life.”

They’re both bow hunters, and employees with the Georgia Department of Natural Resources.

It’s their aim to help children and teens get a grip on archery.

Swords said, “If you learn incorrectly, you can turn a young person off from archery. If you learn correct, you have a life long hobby.”

As a coordinator for the National Archery in Schools Program, Swords says the “Hunger Games” series pointed hundreds of kids in his direction.

Swords said, “I read all three books.”

He watched the films, too.

Swords said, “If you watch Katniss, you can tell Jennifer Lawrence has had some excellent coaching, and it is real, what you see.”

Pittman said you do not have to be athletic to participate. She said, “Everyone can do it, and they can do it well. It’s concentration. It’s eye-hand coordination, and it’s practice.”

She says 25,000 Georgia kids focus on the sport.

Pittman and her team surpassed their target, growing school archery programs from 18 in 2003 to 200 programs now.

There is an archery range at Perry’s Flat Creek Wildlife Management Area. Another like it was just built near Dublin.

Archery Opportunities: Archery shooting ranges

In Central Georgia, Peach, Bleckley, Dodge, Laurens, Truetlen and Wheeler Counties have archery programs in the schools.

Recovering Housing Market to Spur Economic Recovery in New Year

BY: KRISTA FRANKS BROCK

Next year will likely be the first year since 2000 that home purchases outpace refinances, according to Freddie Mac’s expectations. Furthermore, the rallying housing market should set the broader economy on a brighter path, according to Freddie Mac’s U.S. Economic and Housing Market Outlook for November.

“Led by a resurgent housing sector, 2014 should shape up to be better than 2013,” Freddie Mac stated in its outlook.

Housing starts, which have been slow, should rise to a pace of about 1.15 million in 2014, according to Freddie Mac.

This is more in line with the historical average of 1.1 million per year reported by the Census Bureau. In comparison, the Census Bureau recently reported household formation over the first three quarters of this year at just 380,000.

Freddie Mac expects home sales to increase 5 or 6 percent in the new year, but tight inventory will prevent further increases.

Home values will continue to increase, albeit at a slower pace. Freddie Mac expects home price growth to be about the same as home sales growth—5 or 6 percent.

Rental prices will also continue to rise, but like housing prices, their pace will moderate. Freddie Mac expects rents to rise at a pace of about 5.3 percent next year.

Mortgage rates will reach about 5 percent for 30-year, fixed-rate mortgages by the end of 2014, according to Freddie Mac. While this will not threaten affordability in most markets, it may dampen affordability in a few higher-priced markets, according to the outlook.

Also, Freddie Mac noted there may be “some volatility in the short-term” resulting from uncertainty surrounding fiscal policies, such as the debt ceiling and the Federal Reserve’s tapering of its MBS purchases.

The overall good news for the housing market translates to good news for the broader economy, according to Freddie Mac.

The rise in housing starts should translate to 700,000 new jobs, according to economists at Freddie Mac.

These new jobs will help bring the unemployment rate below 7 percent “perhaps by mid-2014,” Freddie Mac stated.

Economic growth is expected at 2.5 to 3 percent for the year, which is “more than 0.5 percentage points better than is projected for 2013,” according to Freddie Mac.

Central Georgia Christmas tree farms to open

Central Georgia Christmas tree farms to open

Submitted by 13WMAZ Web Staff

Wednesday, November 13th, 2013, 2:10pm

(Photo: Jeff J Mitchell/Getty Images)

 

It’s almost that time of year again: Christmas tree time!

Make a day of it with the family and head out to a local Christmas tree farm to pick out the perfect addition for your holiday decor.

Roberts Christmas Tree Farm in Byron:
Opens Nov. 25- Dec. 22
10 a.m. – 5:30 p.m. daily
located at 9247 Peach Parkway on Hwy 49.
478-956-5325

Double B Farms in Lizella:
Opens Thanksgiving Day-Dec. 24
10 a.m. – dark
located at 8511 Knoxville Road, Lizella.
478-935-8742

Sandy Creek Christmas Tree Farm in Macon:
Opens Nov. 23-until
10 a.m.-6 p.m. daily
located at 5889 Hammock Road
478-741-8798

Beall Christmas Tree Farm in Dublin:
Opens Thanksgiving day at 2 p.m. until dark through Christmas.
3:30 p.m. until dark on weekdays, Saturdays 9 a.m., Sunday 1 p.m.
1522 Hwy 80 East
478-689-6447

Our Cotton Pickin’ Christmas Tree Farm in Hawkinsville:

Open Thanksgiving Day-Dec. 23
10 a.m.-5:30 p.m.
located at 120 Cordele Hwy. Hawkinsville
478-230-3646

Home Prices Continue Rising, Sales Steady

BY: ASHLEY R. HARRIS

Home sales continue to seesaw—while levels increased from the previous year, they dipped from previous month. Following historic seasonal trends, October home sales edged 2.8 percent lower than September, but still pushed 2.2 percent higher than sales in October 2012. Median home prices were 11.9 percent above prices seen last October.

“What we’re seeing now are predictable seasonal cycles, which is just another sign that the housing recovery is bringing us back to a more normal market,” said Margaret Kelly, CEO of RE/MAX. “Home sales are expected to slow down during the holidays and winter months before returning to the next growth cycle in the spring.”

Home sales have experienced year-over-year increases in both sales and prices for 21 months now. The median price of all homes sold in October was $179,950. Inventories of homes for sale were 12.2 percent lower than the levels in October last year. For the last 29 months in a row, inventories have declined at a slower rate.

The October inventory drop is half of the annual loss seen as recently as June. At the current rate of sales, the number of months required to sell the entire inventory of homes on the market was 4.9. A 6-month supply is recognized as a balanced market with an equal number of buyers and sellers.

For the most part, normal seasonal trends are responsible for slowing month-to-month changes in home sales. Of the 52 metro areas surveyed in October, 35 reported higher sales than in October 2012, with 19 reporting double-digit gains. New York, New York experienced gains of 32.6 percent; Trenton, New Jersey experienced gains of 32.5 percent; Anchorage, Alaska experienced gains of 24.2 percent; Philadelphia, Pennsylvania experienced gains of 18.2 percent; Wilmington, Delaware experienced gains of 18.1 percent; and Manchester, New Hampshire experienced gains of 17.1 percent.

In the month of October, homes stayed on the market for an average of 66 days. This is one day higher than the average seen in September, but is 16 days lower than the average seen in October 2012. An average this low is the direct result of continued high demand and a reduced inventory of homes for sale, according to RE/MAX.

The housing market has been plagued by a low inventory environment, but for seven consecutive months, inventory has declined at a slower rate than during the same month of the previous year. While not yet adding inventory, the situation is improving. In October, there were 5.1 percent fewer homes for sale than in September, and 12.2 percent fewer than in October 2012. At the rate of home sales in October, the Months Supply of inventory was 4.9.

August Existing Home Sales At Pre-Recession High

09/19/2013BY: MARK LIEBERMAN, FIVE STAR INSTITUTE ECONOMIST

Existing home sales rose an unexpected 6.5 percent in August to an annual sales rate of 5.48 million, the highest level since February 2007 – ten months before the onset of the Great Recession — the National Association of Realtorsreported Thursday. Economists surveyed by Bloomberg expected existing home sales to drop to 5.255 million from July’s originally reported July’s 5.39 million sales pace which was unchanged in today’s report.

The increase in sales came as the median price of an existing single family home in August dipped slightly from July, down $300 to $212,100. It was the second straight month-month price drop.

The inventory of homes for sale edged up to 2.25 million from 2.24 million in July, computing to a 4.9 month supply down from 5.0 in July and the lowest since February’s 4.7 month supply.

The sales increase came as mortgage rates continue to rise with buyers seeking to complete transactions before rates went up further. According to Freddie Mac, the rate for 30-year fixed rate loan in August was 4.46 percent (the average of the weekly rates), up from 4.37 percent in July.

The sales data came shortly after a the Federal Open Market Committee said tighter rates could be hindering the economic recovery and announced it would continue its monetary stimulus policy designed to “maintain downward pressure on longer-term interest rates [and] support mortgage markets.”

The NAR warned the strong sales pace might be a “temporary peak”, the association’s chief economist said “rising mortgage interest rates pushed more buyers to close deals, but monthly sales are likely to be uneven in the months ahead.”

He warned “tight inventory is limiting choices in many areas, higher mortgage interest rates mean affordability isn’t as favorable as it was, and restrictive mortgage lending standards are keeping some otherwise qualified buyers from completing a purchase.”

The stronger sales pace came despite a drop in the NAR’s forward-looking pending home sales index for June which dropped to 110.9 from 111.3 in May. The index fell again in July to 109.5.

The sales gain was driven by stronger activity in the South and Midwest where the sales pace increased by 80,000 and 40,000 respectively. The sales pace slipped 30,000 in the West and was unchanged in the Northeast. The median price rose month-month in the South and Midwest but fell month-month in the West and Northeast. The NAR usually cautions against month-month price comparisons which it said, “do not compensate for seasonal changes, especially for the timing of family buying patterns

With the August report, sales pace topped 5 million for the fourth month in a row for the first time since August-November 2007. The August sales rate was 640,000 or 13.2 percent ahead of August 2012, the 19th straight of year-year gains.

Existing home sales continue to be plagued though by a tight inventory. The number of homes on the in August was down 150,000 from a year earlier, the 30th straight month of annual inventory decline. The months’ supply of homes for sale in August – computed using the homes for sale and the sales pace — was down 1.1 months from a year earlier. The months’ supply has been down year-year for 26 straight months.

While down month-month in August, the median price was up $27,200 or 14.7 percent from a year earlier, the strongest dollar and percentage year-year gain since October 2005. Nonetheless, the median price of an existing single family home is down – 7.9 percent – from its July 2006 peak of $230,300

The median price in August though topped $200,000 for fourth month in a row for the first time since May-August 2008.

According to the NAR, distressed homes – foreclosures and short sales – accounted for 12 percent of August sales, down from 15 percent in July, the lowest share since monthly tracking began in October 2008; they were 23 percent in August 2012. The decline in the share of distressed sales accounts for some of the year-year increase in the median price, since distressed homes sell at discounted prices. Eight percent of August sales were foreclosures, NAR said, and 4 percent were short sales. Foreclosures sold for an average discount of 16 percent below market value in August, while short sales were discounted 12 percent.

According to the Realtor group, the median time on market for all homes was 43 days in August, up from 42 days in July and 37 days in June, but less than the 70 days in August 2012. Non-distressed homes were on the market for 41 days, NAR said, while short sales were on the market for a median of 96 days and foreclosures for 52 days. Under half – 43 percent — of homes sold in August were on the market for less than a month.

With the recent increase in rates, all-cash sales made up 32 percent of transactions in August, up from 31 percent in July and June but down from 33 percent in May. NARreported. All-cash sales were 27 percent in August 2012.

First-time homebuyers accounted for 28 percent of August sales, down from 29 percent in July and from 31 percent a year ago.

Housing Scorecard Suggests Improvement

09/13/2013BY: HUGH MOORE

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The housing recovery continues to gather momentum, indicating an ongoing economic upswing according to the Housing Scorecard released by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today. Improving market indicators include home prices, purchases of new homes, and sales of existing homes according to the report.

“As indicated in the August housing scorecard, the Administration continues to work to stabilize the housing market and help responsible homeowners get back on their feet,” said HUD Deputy Assistant Secretary for Economic Affairs Kurt Usowski. “With the number of underwater homeowners decreasing by more than 40%, it is clear that we are moving in the right direction. As we regain

stability in our housing markets, it is important to remember that we still have a long way to go in making sure that our housing finance system is strong for future generations.”

“The standards set by the Making Home Affordable program have changed the mortgage servicing industry, as have our quarterly assessments of servicer performance” said Treasury Assistant Secretary for Financial Stability Tim Massad. “While there has been significant progress, there is still more improvement needed in servicer behavior. And while the housing market has recovered substantially, there are still homeowners struggling to avoid foreclosure and it is vital that we continue to try to help them.”

Home prices continued to show strong annual gains, according to the report. The FHFA purchase-only index rose 7.7 percent from last year, and the seasonally adjusted purchase-only index has increased for the last 17 consecutive months.

The Housing Scorecard highlighted the government’s foreclosure mitigation programs, including the Home Affordable Modification Program (HAMP), which has provided more than 1.2 million permanent modifications as of July. Also, it noted that grantees of the Neighborhood Stabilization Program reported completion of more than 25,000 rehabilitated housing units.

Panelists Discuss Future of Mortgage Market

09/13/2013BY: HUGH MOORE

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When Ron D’Vari and Thomas Heinemann discussed the possible winding down of Government Supported Entities (GSEs) Fannie Mae and Freddie Mac, one thing both agreed on was that possible reform of government’s role in the mortgage market needs to be preceded by sweeping changes in how loans are provided and capitalized.

“GSE reform is badly needed,” said D’Vari , Co-Founder and CEO of NewOak Capital. “But other issues have to come ahead of this. Provided the right transition and the right preparation, there is capital in the market.”

Heinemann, a senior legislative advisor in the Department of Housing and Urban Development, said that coming regulations will tighten the market, but only time will tell how the market will adjust. “I think we’re about to enter what could be a very interesting time on the Hill,” Heinemann said. “What are the new rules of the road? I think what you’ll begin to see is a gradual scaling back of government support. A lot of things are happening that are meant to bring back private capital.”

D’Vari suggested that the government’s role in the housing market simply couldn’t be maintained. “We have created too much of an intersection between politics and the market,” D’Vari said. “We have created a big monster for ourselves. There is no precedent for the way the US housing market works. By every historical measure we are off the charts.”

Survey Shows Strong Support for Financial Regulation

09/12/2013BY: TORY BARRINGER

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As the calendar approaches September 15, marking the anniversary of the collapse of Lehman Brothers, the nation is reminded of that historical event which severed the very fabric of our financial system.

It’s been five years since that fateful day, and the Center for Responsible Lending (CRL) says Americans-regardless of political party, age, race, or locale-overwhelmingly support financial regulation, and in particular, increased consumer protections.

CRL and Americans for Financial Reform contracted a research group to poll 1,004 likely voters on their feelings toward Wall Street, reform measures that have been implemented, and reforms that have been proposed. They found consumer support for tough financial reform and the Consumer Financial Protection Bureau (CFPB) remains strong.

While the issue of financial regulation has been an area of contention in Washington, the survey actually found that the electorate overwhelmingly favors it, with 96 percent of Democrats, 95 percent of Independents, and 89 percent of Republicans saying they believe financial regulation is “important” or “very important.”

Overall, 83 percent of voters (including 89 percent of Democrats, 82 percent of Independents, and 75 percent of Republicans) said they favor tougher regulation of “Wall Street financial companies” when that statement is presented alongside the alternative of “their practices have changed enough that they don’t need further regulation.”

Meanwhile, 64 percent of voters said they see a need for an agency charged to protect consumers from dangerous financial products. By contrast, 26 percent agreed with a counter-argument depicting the CFPB as an example of expensive and unnecessary federal bureaucracy. Notably, though, 40 percent of respondents said they have no opinion or have not heard of the new consumer protection agency.

Nevertheless, after hearing arguments both for and against financial reform, 63 percent of voters agreed that Wall Street should be held accountable and prevented from repeating past actions, and 67 percent held a favorable view of the stepped-up oversight of mortgage brokers and other financial industry players.

Support for financial regulation, however, coexists with a widespread view of debt problems as a reflection of “personal irresponsibility.” When asked to choose, 30 percent of voters point to personal irresponsibility, while 44 percent prefer an alternative statement that “lenders need rules” and should have to provide clear information “so people can make wise choices.” At the same time, 22 percent of voters say they support both propositions equally.