Sales of new U.S. homes jumped nearly 14% in June, the Census Bureau reported Friday, as the number of purchases hit a 13-year high.
The report shows that 776,000 homes were sold last month. That level of purchases has not been seen since July 2007, when 778,000 homes were sold.
June sales are also up nearly 7% from July 2019. Sales in the Northeast experienced an 89% increase from the prior month, while in the South, where many states are suffering spikes in coronavirus cases, sales were up only 7%.
The census report beat expectations as economists expected sales in June to increase 4% with only 700,000 units sold. Sales in May were revised up, from 676,000 units sold to 680,000.
The median sales price in June for a new house was $329,000, which is up from the annual median price in 2019 of $321,500.
Category Archives: Real Estate
Real Estate Sales Roar in June
The housing market came roaring back in June, as low mortgage rates and increased economic activity helped push sales of previously owned homes up 20.7% from the prior month.
Demand was strong from apartment renters seeking more space, young families moving to the suburbs and wealthy city dwellers looking for second homes, brokers and economists say. At the same time, the supply of houses for sale remained low, as the pandemic has made potential sellers cautious about letting people tour their homes.
Existing-home sales rose in June to a seasonally adjusted annual rate of 4.72 million, the biggest monthly increase in records going back to 1968, the National Association of Realtors said Wednesday. The June sales marked a 11.3% decrease from a year earlier.
The median existing-home price rose 3.5% from a year earlier to $295,300, NAR said. There were 1.57 million homes for sale at the end of June, up 1.3% from May and down 18.2% from June 2019. At the current sales pace, there was a 4.0-month supply of homes on the market at the end of June.
Existing-home sales rose the most month-over-month in the West, at 31.9%, and in the South, at 26%, according to the NAR data.
Source: U.S. Existing-Home Sales Rose 20.7% in June
Meanwhile, we’re a part of those strong sales numbers here in Mohave County. Every day brings more sales, and we truly haven’t seen this much activity since the heady days of 2005-2007.
Land sales are greatly improved, and there finally is some upward pressure on land prices here in the Yucca area, but still too many properties that were purchased as tax liens, or inherited & where the owner doesn’t care about price, and just wants a fast sale.
What’s most encouraging to me is the interest from agents outside of the area, who have been mostly missing for years. The bad news is that many from outside of the area list out here with only a picture of a map and sketchy, missing, or incorrect data. It hurts the market as sellers become desperate over time, and are more inclined to accept fire sale prices. It seems unfair that poor service that hurts our market and sellers can be allowed, but such is the market today.
A Look at RVs Benefits and Costs
If you dream of hitting the open road with a house on wheels, you may be thinking about buying an RV, or recreational vehicle. It’s an especially alluring idea these days.
According to the RV Industry Association, between 9 million and 10 million people in the United States own RVs—1 million live in them full time. And the demand for RVs has substantially increased in the wake of the coronavirus pandemic.
“Not only are we hearing from RV dealers across the country that their sales are up compared to last spring, but new research shows that 1 in 4 Americans intends to take some kind of RV-related action in the next 12 months—such as taking an RV trip, buying or renting an RV, even visiting an RV dealership,” says Craig Kirby, president of RVIA.
Part of the draw of RVs is that they allow people to vacation with their families without risking exposure to COVID-19 by boarding a plane or entering a hotel.
Source: Want an RV as a Home This Summer? The Benefits and Costs of Recreational Vehicles, Revealed
We are seeing more and more folks that want to have a desert getaway in case things get dicey again. There really is a rush to Mohave County, and to places away from the big cities. Anecdotally, around the country we are hearing of homes that had languished before being out and away from town, but suddenly there were three offers.
It bodes well for sales, and we welcome the new “refugees;” welcome to our world. Please be careful out there, the desert is unforgiving.
We’ve dreamed of having an RV for years, and almost came close to pulling the trigger in 2005, but happily waited.
I think of RVs as a hot potato, that is, you buy it when you need it, and sell it if for any reason you’re not going to use it. The depreciation curve is steep, and waiting a year can make a difference.
On the other hand, it seems that after 20 years, the value has plunged enough so that if one is diligent, one can encounter some real low mileage gems for under $10,000. What’s not to love?
Leaving your RV out on the dirt in the desert is not advised for long term without at least occasional inspections to prevent pack rats, mice, and other varmints form moving in to your lovely “homestead.” Get to know your neighbors, and with any luck they can stop in every once in a while and keep an eye. Often, just a well worn driveway will discourage thieves.
and don’t forget the septic… Ben
5 Weird Reality Checks You’ll Get If You Buy a Country Home
This one made me laugh, as good comedy does, there’s a lot of truth in it. Welcome to rural America! You’re in for a few surprises. Click to read. It will be an education for the city folk, and a laugh for us out here in the country.
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Via realtor.com®
City living may have its perks, but combine the congestion and crowds with the threat of the novel coronavirus, and it’s no wonder that many city dwellers these days are fleeing to greener pastures (or thinking about it).
But what is it really like to transition from the hustle and bustle of a city to the more relaxed pace of rural life? As a New Yorker who bought a summer cottage with my husband in upstate New York six years ago,
I’ve come to realize that country life isn’t always so serene. In fact, certain things have happened out yonder that make me very glad that we’ve kept New York City as our main residence.
Source: 5 Weird Reality Checks You’ll Get If You Buy a Country Home | realtor.com®
Pending Home Sales Soar 44.3% in May
Contracts to buy U.S. previously owned homes rebounded by the most on record in May, suggesting the housing market was starting to turn around after being hammered by the COVID-19 pandemic along with the rest of the economy.
Other data on Monday showed an improvement in manufacturing activity in Texas in June after three months of record or near-record declines in output. But surging infections of the respiratory illness in many regions, including the densely populated Texas, Florida and California, pose a risk to the nascent recovery. The economy fell into recession in February.
The National Association of Realtors said its Pending Home Sales Index, based on contracts signed last month, surged 44.3%, the largest gain since the series started in 2001.
Still, contracts remain 10.6% below their level in February before businesses were shuttered in a bid to slow the spread of coronavirus, almost grounding the economy to a halt.
Economists polled by Reuters had forecast pending home contracts, which become sales after a month or two, rebounding 18.9% in May.
Pending home sales fell 5.1% from a year ago. Home resales tumbled to a more than 9-1/2-year low in May. Economists believe the housing market could emerge more quickly from the recession, which started in February, thanks to historic low interest rates.
Source: Pending Home Sales Rebound Record 44.3% as Homebuyers Rush Back Into Market | Newsmax.com
New Construction Sales Up in May
The numbers: Sales of newly-built single-family houses occurred at a seasonally-adjusted annual rate of 676,000 in May, the government reported Tuesday.
That represented a 16.6% increase from the downwardly-revised pace of 580,000 in April. Compared with the previous year, new home sales were up 12.7% in May.
Analysts polled by MarketWatch had forecast new-home sales to occur at a seasonally-adjusted annual rate of 650,000 in May.
The Northeast experienced the most pronounced increase in sales, with a 45.5% jump, followed by the West (up 29%) and the South (up 15.2%). Sales fell by 6.4% in the Midwest.
The median sales price for new homes sold in May was $317,900. At the end of the month, there were 318,000 new homes estimated to be up for sale, which equates to a 5.6-month supply. A 6-month supply of homes is generally considered to be indicative of a balanced market.
Source: New Home Sales Surged in May as Buyers Scrambled to Find Properties for Purchase | realtor.com®
Unique Homes – Las Vegas Home Made Completely in Japan
A home at 38 Hawkeye Lane near Las Vegas is a concept home built like no other. The home measures in at a robust 5,501 square feet and is listed for $7.9 million.
The plot twist? Each piece of the foundation and framing traveled 4,766 nautical miles across the Pacific Ocean in one of 22 shipping containers from Japan. The project was conceived by Sekisui House, which is based in Osaka. The company is one of Japan’s largest homebuilders and purchased the American builder Woodside Homes in 2017.
The company now wants to wow American homebuyers with a touch of its signature style. And if you’re going to gamble on a cool concept, Vegas feels like the right venue.
Source: This Sleek $7.9M Concept Home in Las Vegas Was Made in Japan | realtor.com®
Home Sales Down in May
Sales of previously owned homes fell 9.7 percent in May compared April, the third monthly decline, the National Association of Realtors said Monday.
Existing home sales are counted at the time of closings. So these would have been based on contacts signed in March and April, when most of the country was under instructions to stay at home and real estate showings were off-limits in many areas.
Compared with a year ago, home sales were down 26 percent. Home sales hit an a 13-year high in February but began plunging as the coronavirus discouraged shopping from home, public health officials told Americans to avoid unnecessarily venturing out of their homes, unemployment jumped higher amid mass layoffs, and many states and cities prohibited realtors from showing homes in person.
Previously-owned homes make up most of the housing market, although the sales have a smaller impact on gross domestic product because so much of the work on them has already been completed. Nonetheless, existing home sales can drive sales in appliances, furniture, and home improvement goods. And they remain an important barometer of household confidence and prosperity.
Each of the four major regions of the country witnessed dips in month-over-month and year-over-year sales, with the Northeast experiencing the greatest month-over-month drop, according to the NAR. The decline was worse than the 8.8 percent expected.
Many economists expect that low interest rates and the reopening of the economy will drive up sales in June and in the months to come. Real estate showings are once again permitted in most of the country. Home sales typically peak in mid-summer.
Source: Home Sales Plunged 9.7% in May as Coronavirus Lockdowns Kept Americans Indoors
Summer Home-Buying Season Heats Up
As the summer home-buying season gets underway, median home prices are surging. They shot up 4.3% year over year as the number of homes for sale continued to dry up in the week ending June 6, according to a recent realtor.com® report.
That’s correct: Prices are going up despite this week’s announcement that the U.S. officially entered a recession in February. While that’s below the typical 5% to 6% annual price appreciation this time of year, it’s nearly back to what it was before the coronavirus pandemic.
Median prices were rising 4.5% in the first two weeks of March before the COVID-19 lockdowns began. Nationally, the median home list price was $330,000 in May, according to the most recent realtor.com data.
The culprit for the increasing prices: a lack of homes for sale and a rush of buyers. The total number of home listings on realtor.com was down 25% in the first week in June compared with the previous year—when there was also a housing shortage. In the first two weeks of March, listings had fallen 16% annually.
Source: What Recession? Summer Home-Buying Season Heats Up as Prices Rise | realtor.com®
Improving Economic News is Strengthening the Real Estate Market
An improving economy is turning up the heat on the summer housing market.
The unemployment rate fell to 13.3% in May as more cities and states reopened and many furloughed employees were called back to work, the U.S. Bureau of Labor Statistics announced on Friday. While unemployment is still high, it’s less than April’s rate of 14.7% and well under the predictions of many economists.
“There are signs that the better-than-expected jobs situation is already having a positive effect on the housing market. We’re seeing more home buyers in the market than we did this time last year,” says realtor.com® Chief Economist Danielle Hale. “It’s shaping up to be a hotter-than-expected summer in the housing market.”
Even before anyone had heard of COVID-19, there was a shortfall of homes for sale. Once the virus reached crisis proportions in the U.S., many sellers responded by pulling their properties off the market or holding off on listing them. This made the situation even worse. However in the past few weeks, things are beginning to shift a little.
Source: The Economy Gets a Boost That Could Lead to Higher Home Prices | realtor.com®
The houses are flying off the page in Mohave County. Time will tell, but it still looks to be a mass exodus from California into Arizona.