Home Values See Highest Monthly Increase Since 2006

Zillow: Home Values See Highest Monthly Increase Since 2006

05/25/2012 By: Tory Barringer

Zillow issued a released Friday reporting that both national home values and rents rose in the month of April.

According to the April Zillow Real Estate Market Reports, national home values rose 0.7 percent in April to a Zillow Home Value Index of $147,300. This is the largest monthly increase in home values since January 2006, and it makes April the second month in a row in which home values climbed up.

Zillow also reported that rents rose from March to April, increasing by 1.6 percent, according to the Zillow Rent Index. Of the 178 markets covered by Zillow, 78 percent experienced a rise in rents.
The Miami-Fort Lauderdale and Phoenix metro areas saw the biggest increases in home values, rising 1.6 and 1.9 percent, respectively. Values continued to decrease in hard-hit markets like Atlanta, where home values fell 0.7 percent.
“The housing market continues to show positive signs, with home values increasing significantly in April,” said Dr. Stan Humphries, chief economist at Zillow. “The recovery is moving in the right direction, but we caution that negative equity will cast a long shadow over the housing market. With almost one-third of homeowners with mortgages underwater and unable to sell their homes, inventory is having a hard time keeping up with increasing demand in many areas. We’ll continue to watch this signal as increasing home values turn from a blip into a trend.”
Foreclosures also continued to decline in April, with 6.8 out of every 10,000 homes being foreclosed across the U.S. That figure was down from 8 out of every 10,000 in March. #realestateallaround

Home Sales Increase

By Tony at MSN Real Estate

In April, homebuying season begins in earnest for most regions, and last month was no exception: Existing-home sales increased 3.4% in April from March, hitting a seasonally adjusted annual rate of 4.62 million, the National Association of Realtors said. That was 10% higher than in April 2011.

Meanwhile, the median sale price for existing homes increased 3.1% in April from March to $177,400; that was a 10.1% jump from April 2011. Coupled with March's price increase, this marks the first two-month period of back-to-back year-to-year price increases since mid-2010, the NAR says. Earlier this month, the NAR reported that 74 of the 146 largest U.S. metropolitan areas showed a price increase from the first quarter of 2011 to the first quarter of this year.

The most encouraging news, however, could come in the breakdown of who's paying for these homes.

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First-time buyers accounted for 35% of purchases in April, up from 33% in March and near April 2011's level. All-cash sales decreased to 29% of transactions, from 32% in March. Investors accounted for 20% of sales, nearly the same as in March and in April 2011.

• It's harder for noninvestors to buy foreclosures

On one hand, in a healthy market, first-time buyers represent 40% to 45% of the market, BMO Capital Markets economist Jennifer Lee told The Associated Press — and typically, a stable month includes 6 million home sales. But Lawrence Yun, the NAR's chief economist, cheered April's news as evidence that real buyers — or folks buying homes to live in them, rather than to rent or flip them — are coming back to the market. That is good for many reasons.

"A return of normal homebuying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices," he said in a press release. "The general downtrend in both listed and shadow inventory has shifted from a buyers market to one that is much more balanced, but in some areas it has become a sellers market."

• Home-price drop of 7.8% predicted by 2013  

#realestateallaround

Buying a Home Won't Get Much Cheaper

By Les Christie

Buying a home may never get any cheaper than this. Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market.

With home prices down 34% nationally since 2006 and mortgage rates at historic lows, homes have never been more affordable -- but it won't stay this way for much longer.

Stuart Hoffman, chief economist for PNC Financial Services, said he expects home prices to flatten out by the third quarter and start climbing by next year.

A number of factors will help bolster the housing market, he said, including a decline in the number of foreclosures and continued job growth. In addition, homebuyers will have better access to mortgages as they get their finances in order and improve their credit scores.

"This is a strong indicator that we will start seeing home price indexes, like the S&P/Case-Shiller, start to report home price increases this summer," he said.

Prospective homebuyers who've been sitting on the fence shouldn't worry if they aren't quite ready to make the leap. Analysts are predicting that the initial price gains will be modest, at least, in most markets. #realestateallaround

INCREASES IN HOME SALES VOLUME, TEXAS 2012

Increases in home sales volume, price indicate momentum for Texas real estate in 2012

May 1, 2012

The Texas real estate market gained positive momentum in the first quarter of 2012, according to the 2012-Q1 edition of the Texas Quarterly Housing Report issued today by the Texas Association of REALTORS®. The volume of single-family home sales in Texas was 12% higher than the same quarter of 2011 and the median price increased by almost 3% over the same time frame.

“The watchword for Texas real estate in 2011 was ‘consistency,’ in both sales volume and price. That allowed us to emerge from last year with stable sales volumes and strong property values,” said Joe Stewart, chairman of the Texas Association of REALTORS. “Now, in 2012’s first-quarter results, we see a strong increase in sales volume and a meaningful increase in the median price. That indicates positive momentum for the year ahead.”

For the period of January through March 2012, the volume of single-family home sales in Texas was 45,502, 12% more than the same quarter in 2011. The median price for Texas homes during the quarter was $147,100, 2.7% more than 2011-Q1.

Jim Gaines, Ph.D., an economist with the Real Estate Center at Texas A&M University, expanded on the report: “We believe several factors are driving the strong performance of the first quarter, including continued job growth in Texas and some increased access to credit for homebuyers. Most of all, we’re starting to see a shift in Texans’ attitudes toward real estate. Essentially, buyers and sellers have higher expectations for the market, so they’re beginning to take action and we’re starting to see the impacts.”

Looking ahead, the “months inventory” calculation can provide insight into future demand for homes and that figure decreased from 7.6 months in 2011-Q1 to 6.0 months in the first quarter of this year. “Months inventory” is an indicator of the balance between demand for homes and supply in the market and the Real Estate Center at Texas A&M University cites 6.5 months of inventory as a balanced market.

Gaines continued, “In Texas, our inventory of homes for sale has been decreasing for about six months now. That’s due in part to the fact that some homeowners who don’t have to sell have chosen to wait for prices to improve before selling their homes. In addition, the slower processing of foreclosures and fewer distressed properties may reduce the number of listings. However, a decrease of more than 20% in the inventory of homes compared to the same quarter last year is significant and may be an indication of price increases in the future.”

Chairman Stewart concluded, “If all the indicators play out as we expect, the Texas real estate market is in for a busy spring and summer.”

The Texas Quarterly Housing Report is issued four times per year by the Texas Association of REALTORS® with multiple listing service data compiled and analyzed by the Real Estate Center at Texas A&M University.  #realestateallaround

Apartment Rent Decreases in Houston

Wednesday, April 25, 2012

Apartment Rent Decreases in Houston

Apartment rent decreases in Houston, increases nationwide

Houston Business Journal by Olivia Pulsinelli, Web producer

Date: Wednesday, April 25, 2012, 11:06am CDT

The average rent for apartments in Houston decreased 1.1 percent over the past year, a new analysis from TransUnion shows.

Olivia Pulsinelli 

Web producer - Houston Business Journal

The average rent for apartments in Houston decreased 1.1 percent over the past year, a new analysis from TransUnion shows.
Houston’s average rent was $881 in the first quarter of 2012, down from $891 in the same quarter a year earlier. Meanwhile, the average rent nationwide was $865 in the first quarter, up 4.4 percent from the $829 average recorded in 2011.
That increase is not surprising considering vacancy rates reached their lowest level since 2001, TransUnion Rental Screening Solutions President Mike Mauseth said in the company’s statement.
However, the average rent declined in six of the 10 major markets TransUnion analyzed for its report. The largest declines were in Denver, dropping 8.8 percent; Chicago, falling 4.8 percent; and Los Angeles, decreasing 2.6 percent. Atlanta was the only market to experience a significant increase, with a 6.3 percent jump in average rent.
Mauseth noted differences even in large metro areas situated relatively close to each other, as prices decreased in Houston and Los Angeles but increased in Dallas and San Diego.
TransUnion analyzed more than 130,000 rental applications from property managers nationwide.

Olivia Pulsinelli is the web producer for the Houston Business Journal's award-winning website. #realestateallaround

Houston Association of Realtors® MLS Press Release

MLS Press Release
Multiple Listing Service of the Houston Association of REALTORS® includes residential properties and new homes listed by 24,000 REALTORS®

 

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MLS Report for March 2012

HOUSTON PROPERTY SALES RISE FOR A TENTH STRAIGHT MONTH

Average and median prices reach the highest levels for a March in Houston while inventory maintains its lowest level in more than three years

HOUSTON — (April 17, 2012) — The Houston real estate market enjoyed a tenth consecutive month of rising sales in March, with homes continuing to sell quickly enough to keep housing inventory at its lowest level since December 2008. Average and median prices achieved the highest levels for a March in Houston, with the average price coming just a few dollars shy of the all-time high set in June 2008.
According to the latest monthly data prepared by the Houston Association of REALTORS® (HAR), March sales of single-family homes rose 7.8 percent versus one year earlier. That follows February's 15.6 percent jump which was the biggest sales boost since last September. Declining sales of homes priced below $80,000 combined with increased activity in the luxury housing segment fueled the pricing gains.
"March was an excellent month for home sales in Houston and the healthy appreciation in pricing is welcome news as well," said Wayne A. Stroman, HAR chairman and CEO of Stroman Realty. "Inventory remains at its lowest level in more than three years and is outpacing the national real estate market. The moderation in pending sales in March could possibly translate to a leveling off of sales before we enter the summer buying season, but we will know for sure next month."
The March single-family home average price rose 5.7 percent year-over-year to $227,270, the highest level for a March in Houston and only $70 below the all-time high reached in June 2008. The median price—the figure at which half of the homes sold for more and half sold for less—climbed 7.8 percent to $161,750, also a record high for a March in Houston.
Foreclosure property sales reported in the Multiple Listing Service (MLS) fell 12.8 percent year-over-year in March. Foreclosures comprised 19.6 percent of all property sales, which is down from the 21.1 percent level observed over the past 12 months. The median price of foreclosures in February was flat at $81,500.
March sales of all property types in Houston totaled 5,908, an increase of 7.4 percent compared to March 2011. Total dollar volume for properties sold during the month soared 15.2 percent to $1.3 billion versus $1.1 billion a year earlier.

March Monthly Market Comparison

The month of March brought Houston's overall housing market positive results when all sales categories are compared to March 2011. Total property sales, total dollar volume and average and median pricing rose on a year-over-year basis.

Month-end pending sales for March totaled 4,162. That is down a fractional 0.7 percent from last year and may suggest a slight tapering of sales when the April housing data are compiled. The number of available properties, or active listings, at the end of March declined 17.8 percent from March 2011 to 41,997. For the second month in a row, the inventory of single-family homes held to the lowest level since December 2008-5.6 months. That compares to 7.5 months one year earlier and means that selling the entire inventory single-family homes currently on the market would take 5.6 months to complete based on the past year's sales activity. The figure is superior to the national inventory of single-family homes of 6.4 months recently reported by the National Association of REALTORS® (NAR). These indicators continue to demonstrate that Houston has a balanced real estate marketplace.

CATEGORIES	MARCH 2011	MARCH 2012	PERCENT CHANGE
Total property sales	5,499	5,908	7.4%
Total dollar volume	$1,122,788,737	$1,293,042,237	15.2%
Total active listings	51,091	41,997	-17.8%
Total pending sales	4,190	4,162	-0.7%
Single-family home sales	4,634	4,996	7.8%
Single-family average sales price	$214,980	$227,270	5.7%
Single-family median sales price	$150,000	$161,750	7.8%
Months inventory*	7.5	5.6	-25.9%

* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

Single-Family Homes Update

March sales of single-family homes in Houston totaled 4,996, up 7.8 percent from March 2011. This marks the tenth consecutive monthly increase.

Broken out by housing segment, March sales performed as follows:

$1 - $79,999: declined 8.4 percent,

$80,000 - $149,999: increased 3.5 percent

$150,000 - $249,999: increased 19.7 percent

$250,000 - $499,999: increased 12.1 percent

$500,000 - $1million and above: increased 12.5 percent

At $227,270, the average price of single-family homes rose 5.7 percent from last March, resulting from a combination of increased sales activity among luxury homes and a decline in the sales of homes priced below $80,000. The average price achieved a March high but fell just shy of the historic level of $227,340 reached in June 2008. At $161,750, the median sales price for single-family homes climbed 7.8 percent year-over-year, also achieving a high-point for a March in Houston.

HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In March 2012, existing home sales totaled 4,088, a 6.3 percent increase from March 2011. The average sales price rose 6.5 percent from last year to $212,524 and the median sales price increased 7.4 percent to $145,000.

Townhouse/Condominium Update

The number of townhouses and condominiums that sold in March declined 3.6 percent compared to one year earlier. In the greater Houston area, 374 units were sold last month versus 388 properties in March 2011.

The average price jumped 15.2 percent to $166,228 compared to March 2012. The median price of a townhouse/condominium rose 17.4 percent to $135,000.

Lease Property Update

Demand for lease properties persisted throughout the Houston market in March. Single-family home rentals rose 10.3 percent compared to one year earlier and year-over-year townhouse/condominium rentals increased 3.8 percent.

Houston Real Estate Milestones in March

Volume of single-family home sales rose 7.8 percent, accounting for the tenth consecutive monthly increase;

At $227,270, the single-family home average price reached the highest level for a March in Houston and came just $70 short of the all-time high achieved in June 2008.

At $161,750, the single-family home median price also hit the highest level for a March in Houston;

Single-family home rentals rose 10.3 percent;

Townhouse/condominium rentals increased 3.8 percent;

5.6 months inventory of single-family homes remains at the lowest level since December 2008 and compares favorably to the national average of 6.4 months.  #realestateallaround

Report alleges discrimination in REO maintenance

Foreclosed homes in minority communities are not kept up as well as those in predominantly white areas, according to a housing group's investigation.

By Teresa at MSN Real Estate Mon 2:56 PM

UPDATE, April 10, 2012: The National Fair Housing Alliance filed a complaint with the U.S. Department of Housing and Urban Development against Wells Fargo, alleging discrimination in foreclosure maintenance. The company denied the charge.

Lenders are more likely to maintain foreclosed homes in predominantly white neighborhoods, while allowing those in minority neighborhoods to fall into disrepair, according to a fair-housing organization.

The National Fair Housing Alliance, a nonprofit created to fight housing discrimination, and four of its member organizations looked at the marketing and maintenance of 1,000 foreclosed properties in nine cities: Atlanta; Baltimore; Dallas; Dayton, Ohio; Miami; Oakland, Calif., Philadelphia; Phoenix; and Washington, D.C.

The investigation found that bank-owned properties in minority neighborhoods were 42% percent more likely to have multiple maintenance issues than properties in white neighborhoods. The findings are detailed in a report, "The Banks Are Back, Our Neighborhoods Are Not: Discrimination in the Maintenance and Marketing of REO Properties."

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"This report offers evidence that banks responsible for peddling unsustainable loans to communities of color and triggering our current foreclosure crisis are continuing to damage those communities by failing to properly maintain and market the properties they own," Shanna L. Smith, president and CEO of the housing group, said in a news release.

Smith said the organization planned to file lawsuits, complaints with the federal government or both. The report did not name specific lenders, but it did praise Freddie Mac for its policies, including superior maintenance of homes and the fact that it provided a toll-free number for neighbors to report problems.

• Squatters: The latest real-estate menace

The investigation also found that:

• Bank-owned properties in minority communities were 82% more likely to have broken windows.
• Bank-owned properties in predominantly white neighborhoods were 32% more likely to be marketed with proper signs than those in predominantly black neighborhoods and 38% more likely to have proper signs than those in Latino neighborhoods.
• Properties in minority neighborhoods were 34% more likely to have trash and debris on the lots than those in white neighborhoods.

The report said that lenders' poor maintenance of homes in minority neighborhoods had exacerbated the effects of the foreclosure crisis in those communities:

Proper REO maintenance is a key factor in both the marketability and value of a home as well as the sustainability and viability of communities. Poor maintenance practices can result in a property remaining vacant for longer periods of time. Poor maintenance also increases the likelihood that a property will be purchased by an investor at a discounted price, rather than by an owner-occupant, because of the cost to rehabilitate the home. Thus, the inferior way in which banks maintain and market their REO properties in communities of color actually changes the character of and serves to degrade the quality of life in these neighborhoods.  #realestateallaround