Tag Archives: Real Estate

Real Estate

7 in 10 Homes Sold in Less Than a Month in September

The numbers: Existing-home sales increased for the fourth consecutive month in September, as the U.S. housing market benefitted from low interest rates.

Total existing-home sales rose 9.4% from August to a seasonally-adjusted, annual rate of 6.54 million, the National Association of Realtors reported Thursday. Compared with a year ago, home sales were up nearly 21%.

“Home sales traditionally taper off toward the end of the year, but in September they surged beyond what we normally see during this season,” Lawrence Yun, the trade group’s chief economist, said in the report. “I would attribute this jump to record-low interest rates and an abundance of buyers in the marketplace, including buyers of vacation homes given the greater flexibility to work from home.”

Economists polled by MarketWatch had projected existing-home sales to rise to a median rate of 6.36 million.

What happened: The fast pace of home sales has quickly dwindled the remaining supply of homes on the market, however. More than seven in 10 homes on the market in September sold in less than a month.

As a result, by month’s end the total inventory of homes for sale dropped to a 2.7 months’ supply, the lowest on record. A 6-month supply of homes is considered to be indicative of a balanced market.

Source: Existing-Home Sales Soared in September—7 in 10 Homes Sold in Less Than a Month | realtor.com®

Here in Mohave County sales are brisk with residential sales continuing in “boom” territory, and many sales are closed over the original asking price. It’s a feeding frenzy.

Land sales have picked up, and we’re seeing real appreciation for the first time in many years. Anything with a septic, or better yet a well is hot these days. Gotta go, there’s the phone again….Ben

Real Estate

Home Sales Stay Hot in August

Sales of previously owned U.S. homes remained brisk in August as low mortgage rates and demand for space in the suburbs sustained strength in a housing market that’s a bright spot for the economy.

Closing transactions increased 2.4% from the prior month to a 6 million annualized rate, the strongest pace since the end of 2006, according to National Association of Realtors data issued Tuesday. The figure matched the median estimate in a Bloomberg survey of economists.

Prices jumped 11.4% from a year earlier on an unadjusted basis to a record. While the increase in existing home sales in August was smaller than the record 24.7% jump a month earlier, the level is consistent with steady growth. The housing sector has been one of the strongest parts of the economic rebound, in part because of ultra-low mortgage rates, as well as cooped-up urbanites looking for homes and yards outside of city centers during the pandemic.

Source: U.S. Existing-Home Sales Increase to Fastest Pace Since 2006 – Bloomberg

Off Grid Living, Real Estate

Making the Tiny Home Perfect for Living Large

On “Good Bones,” Mina Starsiak and her mother, Karen Laine, have shown themselves to be pros at making small spaces feel open and airy. In their newest Indianapolis renovation, they show how to creatively transform a grungy, run-down house into a bright and inspiring artists’ cottage. In the episode “Cottage Becomes Artistic Oasis,”

Starsiak and Laine are tasked with renovating a house that a local arts nonprofit has bought for a mere $6,000. They plan to turn it into affordable housing for artists.

The top challenges? For one, the house is tiny, just 790 square feet. The nonprofit also has a tight budget of $90,0000 to spend on renovations, which won’t go far, given all the work this place needs…

For less than $100, they build a vertical living garden inside the sunny three-season room and fill it with edible plants like basil, Brussels sprouts, lettuce, and chives. The result is a beautiful green design element that’s also functional.

This article has even more goodies. One important thing is to use neutral and lighter colors in small spaces. This makes them feel much bigger and inviting.

Since the home will someday be rented out to artists, Starsiak and Laine decide to keep the design color palette light and neutral.

Not only does this help make the tiny home feel bigger, but it also creates a blank slate for the future tenants. They’ll be able to add their own colors and decor to match their style.

Source: ‘Good Bones’ Reveals Top Tricks To Make a Tiny Home Feel Huge | realtor.com®

Lots of interesting ideas for those on a tight budget or just anyone who wants new things to try.

There’s quite a few smaller homes in Kingman dating back to when it was a sleepier mining town. Good bones homes, but in desperate need of a renovation. Many investors have already caught on to this idea as it’s a great way to build instant equity. Many folks will pay top dollar for a mint move-in condition home.

Moreover, these inspirations can translate to your new tiny home in the beautiful northwest high desert of Arizona.

Enjoy…Ben

Real Estate

Good News Again – Housing Starts Soar 22.6% in July

The numbers: Home-building activity has staged a significant turnaround from the coronavirus-related slowdown.

U.S. home builders began construction on homes at a seasonally-adjusted annual rate of 1.496 million in July, up 22.6% from the previous month and 23.4% from a year ago, the U.S. Census Bureau reported Tuesday. The pace of home building is now 7% down from the pre-coronavirus high.

Permitting activity occurred at a seasonally-adjusted annual rate of 1.495 million, up 18.8% from June and 9.4% from July 2019.

Source: Housing Starts Soar 22.6% in July as Americans Reenter the Housing Market in Droves | realtor.com®

It’s wild here as we are clearly in a “boom.” Sadly, land prices are just beginning to move up, primarily because the market is being driven by California and other big city refugees looking for immediate housing. Still, there are encouraging signs: same day land sales (we haven’t seen that for a long time,) multiple offers, and shrinking inventories are all contributing to somewhat more solid prices.

The lack of ready infrastructure is holding many folks back. Some would be more than willing to live temporarily in an RV, but just don’t want to start completely from scratch. Having a septic, or even a basic driveway are all helpful. A well  or utility power are hot sellers these days.

Meanwhile, it’s just startling to see how active the market is in the residential world. At least 50% of sales in Kingman are on the very first day of the listing. – Ben

(Photo: Realtor.com)

Real Estate

Record Low Interest Rates and Improving Economic Numbers

The already scalding-hot housing market is likely to heat up even more.

Mortgage interest rates continued their downward descent, hitting yet another record—largely thanks to the pandemic, and the resulting economic downturn, dragging on. Rates fell to just 2.88% for 30-year, fixed-rate loans in the week ending Aug. 6, according to Freddie Mac.

That’s the lowest rates have ever been since Freddie Mac began tracking them in 1971. They fell from 2.99% last week and are down from a higher 3.6% at the same time last year. “The mortgage rates are really fueling the [housing] market this summer,” says George Ratiu, realtor.com®’s senior economist.

Source: Mortgage Rates Fall to New Record Low ,Adding Fuel to Housing Market | realtor.com®

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.

Real Estate

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

 

Real Estate

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

Real Estate

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®