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California pending home sales continue annual increase for seventh
straight month
Source: C.A.R.
California pending home sales continued to gain steam in June, registering seven months of continued
annual increases and the fifth consecutive month of double-digit increases, according to the
CALIFORNIA ASSOCIATION OF REALTORS®. Also, California REALTORS® responding to
C.A.R.’s June Market Pulse Survey saw a reduction in floor calls, listing appointments, and open house
traffic, compared with May.
Making sense of the story

California pending home sales were up 12.5 percent on an annual basis from the revised 107
index recorded in June 2014, marking the seventh straight month of year-to-year gains and the
fifth straight month of double-digit advances.

Statewide pending home sales fell in June on a month-to-month basis, with the Pending Home
Sales Index (PHSI) decreasing 2.6 percent from a revised 123.6 in May to 120.4, based on signed
contracts.

The month-to-month decrease was slightly below the average May-June loss of 1.9 percent
observed in the last seven years.

A shortage of available homes in the San Francisco Bay Area stifled pending sales in June,
pushing the PHSI to 127.9, down 5.3 percent from 135.1 in May and down 0.9 percent from the
129.1 index recorded in June 2014.

Pending home sales in Southern California continued last month’s increase by rising 4 percent in
June to reach an index of 109.6, up 14.2 percent from the June 2014 index of 96.

The share of equity sales – or non-distressed property sales – declined slightly in June to make up
92.4 percent of all home sales, remaining near the highest level since late 2007.

Reversing last month’s decrease, the share of sales closing below asking price increased to 43
percent in June, up from 40 percent in May, but down from the highest point of 55 percent in
January 2015.
Read the full story
http://www.car.org/newsstand/newsreleases/2015releases/junepending/
In other news …
1 in 4 Americans say this is the best investment
Source: Yahoo! Finance
A new survey shows that more than one in four Americans (27 percent) said real estate was the best
investment for any money that they would not need for at least a decade. Cash came in second with 23
percent of investors, only 17 percent said the stock market is their preferred place for long-term money,
and just 5 percent said they would put their long-term money in bonds. It is the first time real estate has
taken the top spot in the three years Bankrate has been conducting the survey. One certified financial
planner notes that the tangible nature of real estate simply offers much more peace of mind than the
intangible nature of stocks and bonds.
Read the full story
http://finance.yahoo.com/news/1-4-americans-best-investment-152829903.html
As more Americans buy homes, will it ease the strain on renters?
Source: Christian Science Monitor
Last month the housing market experienced the fastest pace for home sales since February 2007, and
prices continued to climb. However, due to shifting demographics and the lingering effects of the housing
crash, more Americans are still renting than they have in decades. If more and more Americans take the
leap and buy homes, it could finally ease the strain on renters, who, thanks to a combination of
demographic and economic factors, are seeing their housing costs balloon and their ranks become more
crowded than they have been in decades.
Read the full story
http://www.csmonitor.com/Business/new-economy/2015/0722/As-more-Americans-buy-homes-will-itease-the-strain-on-renters-video
U.S. home sales approach eight-and-a-half-year high, prices surge
Source: The Atlantic
Existing home sales increased 3.2 percent to an annual rate of 5.49 million units, the highest level since
February 2007, according to the National Association of REALTORS®. Overall, U.S. home resales rose
in June to their highest level in nearly 8.5 years, a sign of pent-up demand that should buoy the housing
market recovery. However, a tight supply of properties for sale remains a constraint. The string of strong
housing reports indicate the economy continues to be on firmer footing despite a drop in retail sales and a
slowdown in job growth last month.
Read the full story
http://www.reuters.com/article/2015/07/22/us-usa-economy-housing-idUSKCN0PW1JR20150722
Is the US housing market the best story in the global economy right
now?
Source: Quartz
As global news is consumed with China’s stock market issues, Europe’s crisis with Greece, and monetary
problems in South America, the outlier for a clear and positive growth trend lies in the United States and
its housing market. Housing is a long-time driver of consumption trends, and in an economy where
consumption amounts to roughly two-thirds of GDP, it’s a good sign that the annualized sales rate of
previously owned homes hit a post-crisis peak of 5.49 million in June.
Read the full story
http://qz.com/461105/dont-laugh-the-us-housing-market-is-the-best-story-in-the-global-economy-rightnow/
How to buy a home in a seller’s market
Source: Washington Post
As more people look to jump into homeownership, they have to contend with fierce competition, limited
choices, and the pressure to act quickly. Due to low inventory, homes are being snatched up within a
matter of days in many areas. While more homes are being built, the pace is still not strong enough to
meet demand, according to analysts. To improve one’s chances, it is advised that prospective buyers
obtain a pre-approval letter in order to act quickly when they see a home they love. Find a knowledgeable
broker who understands the competition and talk to your REALTOR® about adding an escalation clause
to an offer.
Read the full story
http://www.washingtonpost.com/news/get-there/wp/2015/07/21/how-to-navigate-the-tightest-housingmarket-in-years/
Boomers Competing With Millennials for U.S. Urban Rental Housing
Source: Bloomberg
The number of renters who are 65 or older will reach 12.2 million by 2030, more than double the level in
2010, according to research by the Urban Institute. However, if the supply of rental properties fails to
keep up with demand, then younger people will be competing for housing with the burgeoning population
of older Americans. Baby boomers are often looking to downsize, so they are expected to push up rents
and spur construction of more multifamily housing. Research has found that adults in their 50s and 60s
accounted for almost all of the net increase in multifamily occupancy from 2000 to 2013.
Read the full story
http://www.bloomberg.com/news/articles/2015-07-21/boomers-competing-with-millennials-for-u-surban-rental-housing
Talking Points …

Building permits rose 7.4 percent in June to a seasonally adjusted annual rate of 1,343,000,
according to the U.S. Census Bureau and the Dept. of Housing and Urban Development).

The June rate was 30 percent above the June 2014 estimate of 1,033,000.

Permits for single-family homes increased 0.9 percent to a rate of 687,000 compared with the
revised May figure of 681,000. Privately owned housing starts rose 9.8 percent in June to a
seasonally adjusted annual rate of 1,174,000.