Inventory Crunch Tight Supplies Put Home Prices on the Move A Big Threat to the Spring Housing Market Why Inventory Problems Aren't Going AwayThe median existing-home price for all housing types was $202,600 in February – 7.5 percent higher than a year ago. "Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsustainable levels," says Lawrence Yun, NAR's chief economist. "Stronger price growth is a boon for home owners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before [mortgage] rates rise." Mortgage rates, for now, continue to hover near historical lows. The 30-year fixed-rate mortgage averaged 3.71 percent in February, according to mortgage giant Freddie Mac. "With all indications pointing to a rate increase from the Federal Reserve this year – perhaps as early as this summer – affordability concerns could heighten as home prices and rents both continue to exceed wages," says Yun. Indeed, an NAR study earlier this month found a widening gap between rent and income growth across the country, which is making it more difficult for renters to become home owners.
Read more: Why Renters May Be in Trouble4 Stats to Gauge the Market Here are some more findings from NAR's latest housing report: 1. Existing-home sales: Existing-home sales rose 1.2 percent month-over-month, reaching a seasonally adjusted annual rate of 4.88 million in February. Sales are 4.7 percent higher than a year ago. 2. Housing inventory: Housing inventories rose 1.6 percent to 1.89 million existing-homes for-sale in February, but remain 0.5 percent below a year ago. Unsold inventory is at a 4.6-month supply at the current sales pace. Most economists consider a 6-month supply healthy for the market. 3. Distressed sales: Foreclosures and short sales comprised 11 percent of sales in February, down from 16 percent a year ago. In February, 8 percent of sales were foreclosures, and 3 percent were short sales. On average, foreclosures sold for a discount of 17 percent below market value (in January, it was 15 percent) and short sales were discounted by 15 percent on average (from 12 percent in January). 4. Days on the market: Properties were on the market for 62 days, on average, in February, down from 69 days in January. Short sales were on the market for the longest – 120 days. Foreclosures tended to sell in 58 days and non-distressed homes took 61 days. Thirty-four percent of homes sold in February were on the market for less than a month, according to NAR's report. By Region The following is an overview of how sales fared in February across the country:
[caption id="" align="alignleft" width="108"] Duey Hoff, Broker Dickerson & Nieman Realtors[/caption] Duey Hoff has made an impact on RVC Athletics in every way possible for over 45 years. He played both basketball and baseball at RVC (1968-1970) and would later return to coach the men's basketball team, first as an assistant coach (1973) and later as head coach (1983-1985). For the past 28 years, Hoff has served as president of the RVC Athletics Booster Club. On the basketball court, Hoff's specialty was rebounding. He led the 1969-70 team in rebounds with a 13.1 average and for his career at RVC averaged over 10 rebounds per game in helping his teams to back-to-back 23 win seasons. His impact on the RVC Athletics program as Booster Club President can hardly be measured. His leadership has been invaluable and vital to the success of RVC Athletics for nearly 30 years. It was Hoff who launched the Booster Club's successful annual Taste the Hops fundraiser...
Nobody should have to make the difficult choice between paying their heating bill or purchasing food to feed their children. We want to continue to make sure that everyone has enough to eat, not just during the holidays, but all year round. For the 50 million Americans that are going to bed hungry each night, having enough food to eat is the most precious gift of all. Move For Hunger is working to ensure that less food goes to waste and more is delivered directly to those most in need. This Holiday Season, I ask that you support that mission with a very important financial donation. Your generous gift will have a lasting effect on hunger relief right in your community. I look forward to celebrating more milestones with you in 2015.
Happy Holidays from the Move For Hunger family to yours.
Sincerely,
Adam Lowy, Executive Director
| Move For Hunger is a non-profit organization that works with the relocation industry to pick up unopened food from those who are relocating and deliver it to local food banks across the country. To date, Move For Hunger is working with over 600 moving companies and 1,500 realtors across 47 states and Canada who have collected more than 3,500,000 pounds of food. With the support of its partners, Move For Hunger is turning the average food drive into one of the nation's largest, year-round service programs. For more information or to find out how you can help support Move For Hunger, visit www.MoveForHunger.org and make an online donation to help our hunger relief efforts. |