In the height of the spring homebuying season, California’s housing market shrugs off housing shortage as sales and median home price bound higher in June

 

– Existing, single-family home sales totaled 443,150 in June on a seasonally adjusted annualized rate, up 3.3 percent from May and 2.4 percent from June 2016.

– June’s statewide median home price was $555,150, up 0.9 percent from May and up 7.0 percent from June 2016.

– The median number of days on the market fell to 22.4 days in June from 27.1 days a year ago, the fastest pace since May 2004, when it took 21.9 days to sell a home.

– At the regional level, the San Francisco Bay Area, Inland Empire, and Los Angeles metro area all registered year-to-year sales increases of 6.1 percent, 10.4 percent, and 8.3 percent, respectively.

LOS ANGELES (July 17) – Amid the lowest housing inventory levels of the year, existing home sales in California took off in June to their highest pace in nearly four years as existing home sales and median home price recorded strong gains on both a monthly and annual basis for the second straight month, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

Closed escrow sales of existing, single-family detached homes in California not only remained above the 400,000 benchmark for the 15th consecutive month, they totaled a seasonally adjusted annualized rate of 443,150 units in June, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2017 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. The June figure was up 3.3 percent from the revised 428,890 level in May and up 2.4 percent compared with home sales in June 2016 of a revised 432,880. Year-to-date sales are running 3.2 percent ahead of last year’s pace.

“A lack of available homes for sale continues to be the largest single factor influencing California’s housing market,” said C.A.R. President Geoff McIntosh. “With active listings 13.5 percent lower than last June, we’ve now experienced a full two years in which active listings have fallen on a year-over-year basis and the lowest inventory level this year. Would-be sellers aren’t listing their homes as many of them would also face an inventory challenge if they were to turn around and buy another property.”

The statewide median price remained above the $500,000 mark for the fourth straight month and reached the highest level since August 2007. The median price was up 0.9 percent from a revised $550,080 in May to reach $555,150 in June, and was 7.0 percent higher than the revised $518,830 recorded in June 2016. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling, as well as a general change in values.

“While June home sales improved at a healthy pace, the growth in sales was primarily in the mid- to higher-end price ranges. In fact, sales in the lower price ranges were down significantly as a tight supply of affordable homes continues to plague the market and impede the sales of starter homes,” C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “This factor has disproportionately pushed prices higher at the lower end of the market, leading to eroding affordability that either prevents or delays first-time buyers from getting on the housing ladder.”

Other key points from C.A.R.’s June 2017 resale housing report include:

• The June sales increase was wide reaching as every major region in the state posted an increase over the previous month and year. The Inland Empire experienced the largest year-over-year sales gain with a 10.4 percent increase in existing home sales from last June, followed by an increase of 8.3 percent in the Los Angeles Metro Area, and a 6.1 percent rise in the San Francisco Bay Area.

• New statewide active listings have declined for a full two years straight in June, falling 13.5 percent from a year ago.

• The increase in sales, coupled with the double-digit decline in active listings, lowered June’s available housing supply. C.A.R.’s Unsold Inventory Index fell from 2.9 months in May to 2.7 months in June. The index measures the number of months needed to sell the supply of homes on the market at the current sales rate. The index stood at 3.2 months in June 2016.

• At the county level, 39 of 51 reported counties experienced a drop in the unsold inventory index compared to a year ago. San Mateo (1.3 months), Santa Clara (1.4 months), and Alameda (1.6 months) counties had the lowest inventory, followed by San Francisco (1.7 months) and Contra Costa (1.9 months) counties.
• The median number of days it took to sell a single-family home was unchanged from May at 22.4 days but was down from 27.1 days in June 2016.

• C.A.R.’s sales-to-list price ratio* was 100 percent of listing prices statewide in June, 100 percent in May, and 99.5 percent in June 2016.

• The average price per square foot** for an existing, single-family home statewide was $270 in June, $267 in May, and $252 in June 2016.
• San Francisco County had the highest price per square foot in June at $909/sq. ft., followed by San Mateo ($848/sq. ft.), and Santa Clara ($662/sq. ft.). Counties with the lowest price per square foot in June included Del Norte ($114/sq. ft.), Lassen ($131/sq. ft.), and Siskiyou ($133/sq. ft.).

• Mortgage rates continued to dip further since the beginning of the year. The 30-year, fixed-mortgage interest rate averaged 3.90 percent in June, down from 4.01 percent in May but up from 3.57 percent in June 2016, according to Freddie Mac. The five-year, adjustable-rate mortgage interest rates edged up in June to an average of 3.14 percent from 3.12 percent in May but was up from 2.78 percent in June 2016.

Graphics (click links to open):

• Calif. home sales highest in four years.
• Calif. median home price highest since 2007.
• Sales at lower end impacted by low inventory.
• Calif. price per square foot highest since 2007.
• Calif. sales to list price ratio.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales.  Movements in sales prices should not be interpreted as changes in the cost of a standard home.  The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower-end or the upper-end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold.  The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage.  A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property.  It is calculated as the sale price of the home divided by the number of finished square feet.  C.A.R. currently tracks price-per-square foot statistics for 39 counties.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
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June 2017 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

June-17 Median Sold Price of Existing Single-Family Homes Sales
State/Region/County Jun-17 May-17 Jun-16 Price MTM% Chg Price YTY% Chg  Sales MTM% Chg  Sales YTY% Chg
CA SFH (SAAR) $555,150 $550,080 r $518,830 r 0.9% 7.0% 3.3% 2.4%
CA Condo/Townhomes $451,450 $440,890 $413,260 r 2.4% 9.2% 5.1% 2.0%
Los Angeles Metro Area $500,240 $488,720 $473,670 r 2.4% 5.6% 8.6% 8.3%
Inland Empire $346,380 $340,710 $319,100 1.7% 8.5% 9.7% 10.4%
San Francisco Bay Area $908,740 $899,730 $841,960 1.0% 7.9% 10.4% 6.1%
San Francisco Bay Area
Alameda $900,000 $862,000 $803,000 4.4% 12.1% 11.9% 4.8%
Contra-Costa $660,000 $653,000 $625,000 1.1% 5.6% 13.9% 8.2%
Marin $1,272,500 $1,315,000 $1,218,500 -3.2% 4.4% 7.4% 6.0%
Napa $685,000 $673,250 $619,000 1.7% 10.7% 3.3% -8.0%
San Francisco $1,469,000 $1,501,680 $1,350,000 -2.2% 8.8% 3.3% -5.6%
San Mateo $1,433,750 $1,480,000 $1,306,250 -3.1% 9.8% 10.4% 9.4%
Santa Clara $1,182,500 $1,200,000 $1,050,000 -1.5% 12.6% 8.1% 9.4%
Solano $420,000 $415,000 $390,000 1.2% 7.7% 6.3% -1.9%
Sonoma $627,250 $625,000 $608,000 0.4% 3.2% 16.6% 10.8%
Southern California
Los Angeles $548,220 $492,040 $502,190 11.4% 9.2% 8.2% 8.5%
Orange County $795,000 $795,000 $754,000 0.0% 5.4% 4.0% 5.6%
Riverside County $385,000 $375,000 $360,000 2.7% 6.9% 6.6% 8.7%
San Bernardino $274,330 $272,200 $245,220 0.8% 11.9% 15.5% 13.4%
San Diego $612,750 $605,000 $560,000 1.3% 9.4% 5.7% 6.1%
Ventura $666,520 $657,890 $662,500 r 1.3% 0.6% 22.2% 1.0%
Central Coast
Monterey $624,500 $617,000 $537,000 1.2% 16.3% 19.3% 2.2%
San Luis Obispo $556,000 $569,000 $525,000 -2.3% 5.9% -2.8% -7.3%
Santa Barbara $767,500 $725,000 $742,000 5.9% 3.4% 8.5% 28.9%
Santa Cruz $860,000 $875,000 $800,000 -1.7% 7.5% 46.7% 20.0%
Central Valley
Fresno $260,000 $250,000 $241,000 4.0% 7.9% 10.9% 7.0%
Glenn $210,000 $200,000 $205,000 5.0% 2.4% 13.6% -3.8%
Kern $229,450 $230,000 $239,700 -0.2% -4.3% 15.1% 0.5%
Kings $230,000 $211,000 $207,000 9.0% 11.1% 12.5% 25.6%
Madera $279,000 $255,000 $230,380 9.4% 21.1% 40.0% -4.9%
Merced $250,100 $243,500 $213,500 2.7% 17.1% -2.8% -9.2%
Placer $472,000 $460,000 $430,000 2.6% 9.8% 1.1% -0.6%
Sacramento $347,000 $342,100 $329,000 1.4% 5.5% 5.7% -0.7%
San Benito $535,000 $520,000 $511,500 2.9% 4.6% 21.3% -13.6%
San Joaquin $340,000 $331,950 $315,000 2.4% 7.9% 10.3% 11.0%
Stanislaus $289,000 $290,000 $276,000 -0.3% 4.7% 2.2% -1.6%
Tulare $225,450 $225,000 $210,000 0.2% 7.4% 13.1% 17.4%
Other Calif. Counties
Amador $337,500 $350,000 $319,000 -3.6% 5.8% -18.6% -5.9%
Butte County $306,500 $308,000 $275,000 -0.5% 11.5% -0.6% -7.8%
Calaveras $310,000 $295,000 r $315,000 5.1% -1.6% 0.0% -3.5%
Del Norte $165,000 $220,000 $198,750 -25.0% -17.0% -18.8% -50.0%
El Dorado County $499,000 $469,000 $461,550 6.4% 8.1% 14.0% -3.4%
Humboldt $302,500 $289,500 $284,000 4.5% 6.5% 5.9% -7.7%
Lake $259,500 $240,000 $259,000 8.1% 0.2% 2.1% 18.1%
Lassen $193,000 $192,500 $166,000 0.3% 16.3% 66.7% -7.4%
Mariposa $300,000 $271,000 $264,000 10.7% 13.6% 0.0% 5.3%
Mendocino $445,000 $410,000 $350,000 8.5% 27.1% -19.0% -34.7%
Mono $482,850 $627,500 $664,250 f -23.1% -27.3% -16.7% 0.0%
Nevada $380,000 $389,000 $352,000 -2.3% 8.0% 1.3% -3.8%
Plumas $297,000 $285,000 $270,000 4.2% 10.0% 52.9% 48.6%
Shasta $269,900 $255,000 $243,000 5.8% 11.1% 17.6% 5.1%
Siskiyou County $235,000 $211,500 $215,000 11.1% 9.3% -13.0% 20.5%
Sutter $277,000 $283,000 $251,000 -2.1% 10.4% 10.3% -10.3%
Tehama $187,500 $203,000 $235,000 -7.6% -20.2% -7.7% 11.6%
Tuolumne $287,000 $299,000 $245,000 -4.0% 17.1% 12.8% 22.2%
Yolo $445,000 $453,450 $399,900 -1.9% 11.3% 10.0% 15.5%
Yuba $275,470 $255,570 $250,000 7.8% 10.2% 23.6% 23.6%

r = revised
NA = not available

 

June 2017 County Unsold Inventory and Time on Market
(Regional and condo sales data not seasonally adjusted)

June-17 Unsold Inventory Index Median Time on Market
State/Region/County Jun-17 May-17 Jun-16 Jun-17 May-17 Jun-16
CA SFH (SAAR) 2.7 2.9 3.2 22.4 22.4 27.1
CA Condo/Townhomes 2.2 2.4 2.7 r 21.2 21.0 27.3
Los Angeles Metro Area 2.9 3.2 3.6 r 24.6 24.5 43.9 r
Inland Empire 2.9 3.2 3.7 26.4 27.1 45.2
San Francisco Bay Area 1.8 2.1 2.3 20.4 20.0 21.1
San Francisco Bay Area
Alameda 1.6 1.7 2.1 17.8 17.7 17.7
Contra Costa 1.9 2.1 2.2 18.6 18.6 19.0
Marin 2.4 2.6 2.5 27.4 26.2 27.7
Napa 3.8 3.8 3.9 48.8 43.9 47.5
San Francisco 1.7 1.9 2.0 21.2 19.9 24.3
San Mateo 1.3 1.7 2.0 r 17.6 17.5 18.3
Santa Clara 1.4 1.7 2.1 r 17.9 17.6 18.6
Solano 2.3 2.3 2.7 32.7 32.0 34.1
Sonoma 2.7 3.0 3.1 39.4 35.7 41.5
Southern California
Los Angeles 2.7 3.0 3.2 22.5 22.3 38.8
Orange 3.0 3.1 3.6 23.5 22.2 50.5
Riverside 2.8 3.2 3.6 26.8 28.1 48.9
San Bernardino 3.0 3.4 3.9 25.8 25.5 37.1
San Diego 2.5 2.6 3.1 20.3 20.4 21.4
Ventura 4.1 5.0 4.8 r 44.0 46.4 50.2 r
Central Coast
Monterey 3.5 4.2 3.9 r 24.3 24.0 24.9
San Luis Obispo 3.8 3.6 3.9 23.2 23.7 27.7
Santa Barbara 3.7 4.0 4.5 25.4 24.0 32.5
Santa Cruz 2.9 4.0 3.7 r 20.5 21.4 20.5
Central Valley
Fresno 2.9 3.1 3.3 21.5 22.8 25.1
Glenn 3.6 3.7 3.2 28.9 40.7 41.9
Kern 2.9 3.3 3.3 24.5 25.1 26.1
Kings 2.7 3.0 3.2 27.1 23.8 25.9
Madera 4.4 6.4 4.9 24.3 45.5 62.0
Merced 3.0 2.7 2.7 21.8 23.4 25.2
Placer 2.3 2.2 2.6 20.2 19.3 20.8
Sacramento 2.0 2.0 2.4 18.3 18.3 18.7
San Benito 3.1 3.7 2.8 r 22.8 23.0 25.5
San Joaquin 2.2 2.3 2.7 20.2 20.2 21.3
Stanislaus 2.5 2.4 2.6 20.5 21.1 20.3
Tulare 3.1 3.5 3.3 26.6 26.8 28.2
Other Calif. Counties
Amador 5.6 3.8 5.0 23.5 29.5 24.1
Butte 3.0 2.9 3.4 22.2 19.3 27.4 r
Calaveras 5.4 4.8 5.3 27.8 27.1 44.0
Del Norte 13.0 9.4 5.8 126.4 80.3 100.7
El Dorado 4.1 4.2 3.9 24.6 23.9 27.8
Humboldt 5.1 5.0 3.9 23.7 23.4 23.3
Lake 4.9 4.6 6.0 26.4 37.8 66.6
Lassen 7.2 10.9 NA 68.3 64.6 85.9
Mariposa 4.2 4.2 5.1 33.9 26.0 115.2
Mendocino 7.1 5.8 5.6 57.4 72.6 56.1
Mono 11.7 8.4 NA 121.0 130.7 125.8
Nevada 3.5 3.2 3.5 21.1 24.0 22.9
Plumas 7.3 10.4 12.7 87.4 125.4 75.5
Shasta 3.8 4.3 4.1 23.8 23.7 28.2
Siskiyou 6.2 5.1 8.2 32.8 31.0 45.5
Sutter 2.5 2.4 2.0 20.6 22.0 24.5
Tehama 4.8 4.3 5.3 46.8 39.7 55.7
Tuolumne 5.3 5.0 6.6 31.6 41.6 38.3
Yolo 2.0 2.2 2.5 19.3 19.6 20.3
Yuba 2.0 2.3 2.6 20.9 20.9 19.4

r = revised
NA = not available

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Should you buy or rent? What are the best neighborhoods? Here’s our 2017 real estate study

BUSINESS MONDAY

Should you buy or rent? What are the best neighborhoods? Here’s our 2017 real estate study

JULY 24, 2017 7:00 AM

Change Your Address Everywhere On This Printable Checklist When You Move

Change Your Address Everywhere On This Printable Checklist When You Move

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U.S. home sales to foreigners surge 49% to new record

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Foreigners are getting serious about “Buying American” real estate.

The National Association of Realtors released a report Tuesday that said foreign buyers and recent immigrants spent an estimated $153 billion on American properties in the year ending March 2017. That was a 49% increase over the previous year and the highest level since record-keeping began in 2009.

The purchases accounted for 10% of the total value of existing home sales in the U.S. The report did not include new homes.

The breakdown of sales between foreigners and recent immigrants was about 50:50.

Blame Canada

America’s neighbors to the north were one big factor behind the surge.

Canadian real estate investors nearly doubled their purchases of American homes over the period because of the relative affordability of properties in the States. Many Canadians have been squeezed out of property markets in cities like Toronto and Vancouver that have experienced rapid price gains.

Canadians were the second biggest foreign purchasers of homes after the Chinese. Buyers from China shelled out nearly $32 billion over the period, while Canadians spent $19 billion.

Related: London’s economy is starting to ‘wobble’

Trump turmoil?

Foreign buyers had to brush off U.S. political turmoil in order to make their purchases.

“The political and economic uncertainty both here and abroad did not deter foreigners from exponentially ramping up their purchases of U.S. property over the past year,” said Lawrence Yun, chief economist at the National Association of Realtors.

“While the strengthening of the U.S. dollar in relation to other currencies and steadfast home-price growth made buying a home more expensive in many areas, foreigners increasingly acted on their beliefs that the U.S. is a safe and secure place to live, work and invest,” he said.

Location, location, location

Nearly half of all foreign sales were in three states: Florida, California and Texas.

Canadians gravitated to Florida. Chinese buyers focused on California. And Texas was the preferred state for Mexican buyers.

New Jersey and Arizona were the fourth and fifth most popular states.

Related: Yes, student debt is delaying homeownership

The report estimated foreign buyers typically paid just over $302,000 per property, up 9% from the previous year.

About 10% of foreign buyers paid over $1 million.

How long do your systems and appliances last?

This infographic shows you how long your systems and appliances last - and which ones you probably need to protect with a home warranty!

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It’s tough being a first-time buyer in today’s housing market.

Home prices are hitting record highs in many parts of the country, often selling for more than the asking price, and going from list to contract in a record 37 days, according to Redfin.

“We’ve never seen a faster or more competitive market,” says Redfin spokeswoman Rachel Musiker. “Basically this market isn’t for the faint of heart.”

Don’t make it even harder (or more expensive) for yourself by making these common mistakes:

1. Assuming you won’t get approved for a mortgage

Ideally, you’d like to have as little debt as possible, an impeccable credit score, and a 20% down payment before borrowing money for a home. However, even borrowers with less can get loans in today’s market, thanks to options like Federal Housing Authority loans, which are meant to help out low-income and first-time buyers.

2. Interviewing only one lender

The fees and rates offered by lenders may vary substantially, and they all offer different service levels and different loan products. Be sure to at least chat with a big bank, a regional bank or credit union, and an online lender.

3. Not getting pre-approved early on

Getting pre-approved for a mortgage serves two important purposes: First, it gives you a realistic understanding of how much you can spend on the house. Second, it shows sellers that you’re serious and gives you slightly more standing if you’re competing for homes with all-cash buyers.

Make it less stressful by gathering up relevant financial documents like bank statements, tax returns, and pay stubs, and by checking your credit report for errors in advance. “Given the competitive interest rate environment and the competitive housing market, it’s a good idea to be prepared and organized before you start the process,” says Keith Gumbinger, vice president of HSH.com.

4. Maxing out your mortgage limit

Just because a lender says that you can borrow a certain amount, doesn’t mean you should borrow that much. Staying below that limit will give you more financial flexibility to cover the added expenses that come with purchasing a home, as well as long-term changes to your income.

Create a budget that includes how much money you can spend on housing costs each month, and then use those numbers to figure out what your “real” limit should be.

5. Letting your emotions control your decisions

Buying a home can be a long and frustrating process. These days, starter homes go quickly, and it’s common for first-time buyers to experience rejection on the first offers they make. In that kind of environment, it’s easy to fall in love with a house that’s out of your budget, or get caught up in the heat of a bidding war and end up paying more than you expected.

“It’s OK to get excited when you think you’ve found your house, but you don’t want to put yourself in a bad spot,” says David Tina, President of the Greater Las Vegas Association of Realtors.

6. Waiving contingencies without understanding the risks

In highly competitive markets, it’s becoming increasingly common for buyers to make offers that aren’t contingent on financing or inspection. While waiving contingencies can make your bid more desirable to a seller, it can make the transaction much more risky for you. Have a conversation with your realtor and a lawyer before opting out of contingencies in your contract. In a worst-case scenario, you may end up losing your deposit.

7. Allowing your credit score to change before the close

A pre-approval letter is not a guarantee of funding, and if your credit score or income levels change drastically between the pre-approval and the closing of the loan, lenders may change their terms or rescind the offer entirely. While you’re home shopping, be sure to pay all your bills on time and steer clear of new credit accounts, even if that means you have to wait to pick out your furniture. If possible, try not to switch jobs until after you close, particularly if you’re moving into a new industry.

An earlier version of this story said homes go from list to closing in 37 days, according to Redfin. In fact, they go from list to contract.

A Seller’s Market? Consumers Express Diverging Sentiment on Home Buying and Selling in May

June 07, 2017

A Seller’s Market? Consumers Express Diverging Sentiment on Home Buying and Selling in May

Matthew Classick

202-752-3662

WASHINGTON, DC – The Fannie Mae Home Purchase Sentiment Index® (HPSI) decreased 0.5 percentage points in May to 86.2. The slight decrease can be attributed to decreases in three of the six HPSI components being larger on net than the three increases. The net share of Americans who reported that now is a good time to buy a home reached a record low after falling 8 percentage points, while the net share who reported that now is a good time to sell a home reached a record high, increasing 6 percentage points. This is only the second time in the survey’s history that the net share of those saying it’s a good time to sell surpassed the net share of those saying it’s a good time to buy. Americans also expressed greater belief that mortgage rates will go down over the next 12 months, with that component increasing 5 percentage points. Finally, the net share of consumers who think home prices will go up fell by 5 percentage points this month.

“High home prices have led many consumers to give us the first clear indication we’ve seen in the National Housing Survey’s seven-year history that they think it’s now a seller’s market,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market, perhaps due in part to concerns over finding an affordable replacement home. Prospective homebuyers are likely to face continued home price increases as long as housing supply remains tight.”

HOME PURCHASE SENTIMENT INDEX – COMPONENT HIGHLIGHTS

Fannie Mae’s 2017 Home Purchase Sentiment Index (HPSI) decreased in May by 0.5 percentage points to 86.2. The HPSI is up 0.9 percentage points compared with the same time last year.

  • The net share of Americans who say it is a good time to buy a home fell 8 percentage points to 27%, reaching a new survey low
  • The net percentage of those who say it is a good time to sell increased by 6 percentage points to 32%, rising from last month’s decline to a new survey high.
  • The net share of Americans who say that home prices will go up decreased by 5 percentage points in May to 40%.
  • The net share of those who say mortgage rates will go down over the next twelve months rose 5 percentage points to -52%, following the trend from last month.
  • The net share of Americans who say they are not concerned about losing their job fell 6 percentage points to 71%, back near the level seen in March.
  • The net share of Americans who say their household income is significantly higher than it was 12 months ago rose 5 percentage points to 18% in May.

ABOUT FANNIE MAE’S HOME PURCHASE SENTIMENT INDEX

The Home Purchase Sentiment Index (HPSI) distills information about consumers’ home purchase sentiment from Fannie Mae’s National Housing Survey® (NHS) into a single number. The HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and decision making. The HPSI is constructed from answers to six NHS questions that solicit consumers’ evaluations of housing market conditions and address topics that are related to their home purchase decisions. The questions ask consumers whether they think that it is a good or bad time to buy or to sell a house, what direction they expect home prices and mortgage interest rates to move, how concerned they are about losing their jobs, and whether their incomes are higher than they were a year earlier.

ABOUT FANNIE MAE’S NATIONAL HOUSING SURVEY

The most detailed consumer attitudinal survey of its kind, Fannie Mae’s National Housing Survey (NHS) polled 1,000 Americans via live telephone interview to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts, six of which are used to construct the HPSI (findings are compared with the same survey conducted monthly beginning June 2010). As cell phones have become common and many households no longer have landline phones, the NHS contacts 60 percent of respondents via their cell phones (as of October 2014). For more information, please see the Technical Notes. Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future. The May 2017 National Housing Survey was conducted between May 1, 2017 and May 23, 2017. Most of the data collection occurred during the first two weeks of this period. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.

DETAILED HPSI & NHS FINDINGS

For detailed findings from the May 2017 Home Purchase Sentiment Index and National Housing Survey, as well as a brief HPSI overview and detailed white paper, technical notes on the NHS methodology, and questions asked of respondents associated with each monthly indicator, please visit the Surveys page on fanniemae.com. Also available on the site are in-depth special topic studies, which provide a detailed assessment of combined data results from three monthly studies of NHS results.

To receive e-mail updates with other housing market research from Fannie Mae’s Economic & Strategic Research Group, please click here.

June 07, 2017 A Seller’s Market? Consumers Express Diverging Sentiment on Home Buying and Selling in May Matthew Classick 202-752-3662 WASHINGTON, DC – The Fannie Mae Home Purchase Sentiment Index® (HPSI) decreased 0.5 percentage points in May to 86.2. The slight decrease can be attributed to decreases in three of the six HPSI components being larger on net than the three increases. The net share of Americans who reported that now is a good time to buy a home reached a record low after falling 8 percentage points, while the net share who reported that now is a good time to sell a home reached a record high, increasing 6 percentage points. This is only the second time in the survey’s history that the net share of those saying it’s a good time to sell surpassed the net share of those saying it’s a good time to buy. Americans also expressed greater belief that mortgage rates will go down over the next 12 months, with that component increasing 5 percentage points. Finally, the net share of consumers who think home prices will go up fell by 5 percentage points this month. “High home prices have led many consumers to give us the first clear indication we’ve seen in the National Housing Survey’s seven-year history that they think it’s now a seller’s market,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market, perhaps due in part to concerns over finding an affordable replacement home. Prospective homebuyers are likely to face continued home price increases as long as housing supply remains tight.” HOME PURCHASE SENTIMENT INDEX – COMPONENT HIGHLIGHTS Fannie Mae’s 2017 Home Purchase Sentiment Index (HPSI) decreased in May by 0.5 percentage points to 86.2. The HPSI is up 0.9 percentage points compared with the same time last year. The net share of Americans who say it is a good time to buy a home fell 8 percentage points to 27%, reaching a new survey low The net percentage of those who say it is a good time to sell increased by 6 percentage points to 32%, rising from last month’s decline to a new survey high. The net share of Americans who say that home prices will go up decreased by 5 percentage points in May to 40%. The net share of those who say mortgage rates will go down over the next twelve months rose 5 percentage points to -52%, following the trend from last month. The net share of Americans who say they are not concerned about losing their job fell 6 percentage points to 71%, back near the level seen in March. The net share of Americans who say their household income is significantly higher than it was 12 months ago rose 5 percentage points to 18% in May. ABOUT FANNIE MAE’S HOME PURCHASE SENTIMENT INDEX The Home Purchase Sentiment Index (HPSI) distills information about consumers’ home purchase sentiment from Fannie Mae’s National Housing Survey® (NHS) into a single number. The HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and decision making. The HPSI is constructed from answers to six NHS questions that solicit consumers’ evaluations of housing market conditions and address topics that are related to their home purchase decisions. The questions ask consumers whether they think that it is a good or bad time to buy or to sell a house, what direction they expect home prices and mortgage interest rates to move, how concerned they are about losing their jobs, and whether their incomes are higher than they were a year earlier. ABOUT FANNIE MAE’S NATIONAL HOUSING SURVEY The most detailed consumer attitudinal survey of its kind, Fannie Mae’s National Housing Survey (NHS) polled 1,000 Americans via live telephone interview to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts, six of which are used to construct the HPSI (findings are compared with the same survey conducted monthly beginning June 2010). As cell phones have become common and many households no longer have landline phones, the NHS contacts 60 percent of respondents via their cell phones (as of October 2014). For more information, please see the Technical Notes. Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future. The May 2017 National Housing Survey was conducted between May 1, 2017 and May 23, 2017. Most of the data collection occurred during the first two weeks of this period. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae. DETAILED HPSI & NHS FINDINGS For detailed findings from the May 2017 Home Purchase Sentiment Index and National Housing Survey, as well as a brief HPSI overview and detailed white paper, technical notes on the NHS methodology, and questions asked of respondents associated with each monthly indicator, please visit the Surveys page on fanniemae.com. Also available on the site are in-depth special topic studies, which provide a detailed assessment of combined data results from three monthly studies of NHS results. To receive e-mail updates with other housing market research from Fannie Mae’s Economic & Strategic Research Group, please click here.

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