Real Estate Information Archive

Sales Up Despite Years of Rising Prices, Falling Inventory

DENVER - November became the sixth month of 2017 to post an increase in year-over-year home sales, bucking prolonged trends of home price increases and inventory declines, according to the December RE/MAX National Housing Report.

The sales increase of 1.1% came on the strength of increased transaction closings in 36 of the report’s 54 markets. At the same time, buyers felt increasing headwinds as the Median Sales Price rose to $227,500 and marked the 20th consecutive month of year-over-year home price increases. In fact, the Median Sales Price has increased year-over-year in 69 of the last 70 months dating back to February 2012.

November's inventory decline of 14.5% extended the streak of consecutive months of fewer homes on the market to 108. The current streak started nine years ago, in November 2008, shortly after the RE/MAX National Housing Report was introduced.

Setting new report lows for November were Days on Market at 54 and Months Supply of Inventory at 3.6

“The end of the year is typically a slower selling season with low inventory, but our numbers are telling a different story,” said Adam Contos, RE/MAX Co-CEO. “We don’t see any sign of home buyers slowing down their house hunting. In fact, many are taking advantage of lower competition for available homes in the ‘slow season.’”

Contos added that, while consumer confidence is up and unemployment remains low, new home starts continue to lag because of material costs and a labor shortage. “Until we begin to see new homes being built, we won’t see much growth in available homes on the market,” he said.

Closed Transactions

Of the 54 metro areas surveyed in November 2017, the overall average number of home sales decreased 7.3% compared to October 2017 but increased 1.1% compared to November 2016. Thirty-six of the 54 metro areas experienced an increase in sales year-over-year, including Trenton, NJ, +21.3%, Augusta, ME, +14.5%, Honolulu, HI, +14.1%, and Manchester, NH, +14.0%.

Median Sales Price – Median of 54 metro median prices

In November 2017, the median of all 54 metro Median Sales Prices was $227,500, up 1.7% from October 2017 and up 3.7% from November 2016. Only five metro areas saw a year-over-year decrease in Median Sales Price, including Anchorage, AK, -5.3%, Trenton, NJ, -4.2%, and Honolulu, HI, -3.4%. Nine metro areas increased year-over-year by double-digit percentages, with the largest increases seen in San Francisco, CA, +13.8%, Cleveland, OH, +12.9%, Orlando, FL, +11.6%, and Seattle, WA, +11.4%. 

Days on Market – Average of 54 metro areas

The average Days on Market for homes sold in November 2017 was 54, up three days from the average in October 2017, and down five days from the November 2016 average. The four metro areas with the lowest Days on Market were San Francisco, CA, at 25, Omaha, NE, at 27, Seattle, WA, at 29, and Nashville, TN, at 30. The highest Days on Market averages were in Augusta, ME, at 116, and Miami, FL, at 86. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 54 metro areas

The number of homes for sale in November 2017 was down 9.2% from October 2017, and down 14.5% from November 2016. Based on the rate of home sales in November, the Months Supply of Inventory increased to 3.6 from 3.3 in October 2017, but decreased compared to the 4.0 of November 2016. A 6 months supply indicates a market balanced equally between buyers and sellers. In November 2017, 49 of the 54 metro areas surveyed reported a months supply at or less than 6, which is typically considered a seller’s market. The metro areas that saw a months supply above 6.0, typically considered a buyer’s market, were Augusta, ME, at 8.4, Miami, FL, at 7.6, and Fargo, ND, at 6.5. The markets with the lowest Months Supply of Inventory continued to be in the West, with San Francisco, CA, at 1.0, Seattle, WA, at 1.3, and Denver, CO, at 1.4.

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood.

And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres

Associate Broker, CRS,ABR,CLHMS,SRES

Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com

Cell: 505-362-2005

Office: 505-798-1000

Sales Up Despite Years of Rising Prices, Falling Inventory

DENVER - November became the sixth month of 2017 to post an increase in year-over-year home sales, bucking prolonged trends of home price increases and inventory declines, according to the December RE/MAX National Housing Report.

The sales increase of 1.1% came on the strength of increased transaction closings in 36 of the report’s 54 markets. At the same time, buyers felt increasing headwinds as the Median Sales Price rose to $227,500 and marked the 20th consecutive month of year-over-year home price increases. In fact, the Median Sales Price has increased year-over-year in 69 of the last 70 months dating back to February 2012.

November's inventory decline of 14.5% extended the streak of consecutive months of fewer homes on the market to 108. The current streak started nine years ago, in November 2008, shortly after the RE/MAX National Housing Report was introduced.

Setting new report lows for November were Days on Market at 54 and Months Supply of Inventory at 3.6

“The end of the year is typically a slower selling season with low inventory, but our numbers are telling a different story,” said Adam Contos, RE/MAX Co-CEO. “We don’t see any sign of home buyers slowing down their house hunting. In fact, many are taking advantage of lower competition for available homes in the ‘slow season.’”

Contos added that, while consumer confidence is up and unemployment remains low, new home starts continue to lag because of material costs and a labor shortage. “Until we begin to see new homes being built, we won’t see much growth in available homes on the market,” he said.

Closed Transactions

Of the 54 metro areas surveyed in November 2017, the overall average number of home sales decreased 7.3% compared to October 2017 but increased 1.1% compared to November 2016. Thirty-six of the 54 metro areas experienced an increase in sales year-over-year, including Trenton, NJ, +21.3%, Augusta, ME, +14.5%, Honolulu, HI, +14.1%, and Manchester, NH, +14.0%.

Median Sales Price – Median of 54 metro median prices

In November 2017, the median of all 54 metro Median Sales Prices was $227,500, up 1.7% from October 2017 and up 3.7% from November 2016. Only five metro areas saw a year-over-year decrease in Median Sales Price, including Anchorage, AK, -5.3%, Trenton, NJ, -4.2%, and Honolulu, HI, -3.4%. Nine metro areas increased year-over-year by double-digit percentages, with the largest increases seen in San Francisco, CA, +13.8%, Cleveland, OH, +12.9%, Orlando, FL, +11.6%, and Seattle, WA, +11.4%. 

Days on Market – Average of 54 metro areas

The average Days on Market for homes sold in November 2017 was 54, up three days from the average in October 2017, and down five days from the November 2016 average. The four metro areas with the lowest Days on Market were San Francisco, CA, at 25, Omaha, NE, at 27, Seattle, WA, at 29, and Nashville, TN, at 30. The highest Days on Market averages were in Augusta, ME, at 116, and Miami, FL, at 86. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 54 metro areas

The number of homes for sale in November 2017 was down 9.2% from October 2017, and down 14.5% from November 2016. Based on the rate of home sales in November, the Months Supply of Inventory increased to 3.6 from 3.3 in October 2017, but decreased compared to the 4.0 of November 2016. A 6 months supply indicates a market balanced equally between buyers and sellers. In November 2017, 49 of the 54 metro areas surveyed reported a months supply at or less than 6, which is typically considered a seller’s market. The metro areas that saw a months supply above 6.0, typically considered a buyer’s market, were Augusta, ME, at 8.4, Miami, FL, at 7.6, and Fargo, ND, at 6.5. The markets with the lowest Months Supply of Inventory continued to be in the West, with San Francisco, CA, at 1.0, Seattle, WA, at 1.3, and Denver, CO, at 1.4.

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood.

And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres

Associate Broker, CRS,ABR,CLHMS,SRES

Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com

Cell: 505-362-2005

Office: 505-798-1000

The following new limits will be effective for loans in 2018:

• FHFA (Federal Housing Finance Authority)—Conventional Loans. The Federal Housing Finance Agency (FHFA) has announced that it has increased the 2018 maximum conforming and high-cost area loan limits for mortgages acquired by Fannie Mae and Freddie Mac. Conforming loan limits for one-unit properties in the contiguous U.S. will be $453,100. High-cost area loan limits for one unit will be $679,650.
• FHA (Federal Housing Authority) FHA has updated its list of the maximum mortgage limits for FHA-insured forward mortgages, effective for case numbers assigned on or after January 1, 2018, through December 31, 2018. FHA loan limits will increase in 3,011 counties and stay the same in 233 counties.
• VA (Veterans Affairs) VA Loans will also have new limits; however, for pricing purposes, keep in mind that any amount over the conforming lending limit of $453,100 will be considered high balance for VA on or after January 1, 2018.

You’ve found the perfect home. The price is perfect and everything looks good. The only thing that could keep you from owning your dream home is the competitive market. What you need to do is to make a really good offer so that you get the home you want.

Freddie Mac’s “4 Tips for Making an Offer” in their Executive Perspective will help you in making the right moves to get into your dream home.

1. How much can you afford?

“While it’s not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”

By getting pre-approved, you show home sellers how serious you are about purchasing their home. Knowing that you are already approved for a mortgage gives you confidence that you can afford the home. Find out if you would also need to make repairs t the home.

2. Time is of the essence

“Even though there are fewer investors, the inventory of homes for sale is also low and competition for housing continues to heat up in many parts of the country.”

You have to act fast. With inventory being low, lower than the 6 month supply needed for the market to be considered “normal”, competition for homes will be fierce. Multiple buyers compete for a single home. If you’ve decided to purchase the home, talk to an agent immediately, so that you can present your offer as soon as possible.

3. Solid offer

Freddie Mac’s advice for a strong offer:

“Your strongest offer will be comparable with other sales and listings in the neighborhood. A licensed real estate agent active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer based on their experience and other key considerations such as recent sales of similar homes, the condition of the house and what you can afford.”

Talking to your agent will make a big difference. Discuss how you can make a stronger offer which will make your offer stand out from the rest.

4. Negotiation is Key

“It’s likely that you’ll get at least one counteroffer from the sellers so be prepared. The two things most likely to be negotiated are the selling price and closing date. Given that, you’ll be glad you did your homework first to understand how much you can afford.

Your agent will also be key in the negotiation process, giving you guidance on the counteroffer and making sure that the agreed-to contract terms are met.”

Be prepared to negotiate. Once tour offer is approved it is advised that you get an independent home inspection to make sure of the condition of the home. If there are any needed repairs, you can talk to the seller about it and discuss the issues. You’ll also see if the home is really worth it. If it’s not, you can cancel the contract.

Having an expert local professional in your corner will mean success and will make the whole process go smoothly.

Buying a home may be the largest and most complex financial transaction you ever undertake. If you're ready to buy a home, wouldn't you prefer to work with the most qualified real estate professional you can find?

An Accredited Buyer's Representative stands out in the crowd. If your REALTOR® holds the ABR® designation, you can trust that they have the extra edge when it comes to KNOWLEDGE AND EXPERIENCE.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com