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Existing-Home Sales Heat Up in May, Inventory Levels Continue to Improve

by National Association of Realtors®

WASHINGTON (June 23, 2014) – Existing-home sales rose strongly in May and inventory gains continued to help moderate price growth, according to the National Association of Realtors®. All four regions of the country experienced sales gains compared to a month earlier.

Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 4.9 percent to a seasonally adjusted annual rate of 4.89 million in May from an upwardly-revised 4.66 million in April, but remain 5.0 percent below the 5.15 million-unit level in May 2013. The 4.9 percent month-over-month gain in May was the highest monthly rise since August 2011 (5.5 percent).

Lawrence Yun, NAR chief economist, said current sales activity is rebounding after the lackluster first quarter. “Home buyers are benefiting from slower price growth due to the much-needed, rising inventory levels seen since the beginning of the year,” he said. “Moreover, sales were helped by the improving job market and the temporary but slight decline in mortgage rates.”

Total housing inventory2 at the end of May climbed 2.2 percent to 2.28 million existing homes available for sale, which represents a 5.6-month supply at the current sales pace, down slightly from 5.7 months in April. Unsold inventory is 6.0 percent higher than a year ago, when there were 2.15 million existing homes available for sale.

The median existing-home price3 for all housing types in May was $213,400, which is 5.1 percent above May 2013. “Rising inventory bodes well for slower price growth and greater affordability, but the amount of homes for sale is still modestly below a balanced market. Therefore, new home construction is still needed to keep prices and housing supply healthy in the long run,” Yun added. 

Earlier this month, NAR reported new home construction activity is currently insufficient in most of the U.S., and some states could face persistent housing shortages and affordability issues unless housing starts increase to match up with local job creation.

Distressed homes4 – foreclosures and short sales – accounted for 11 percent of May sales, down from 18 percent in May 2013. Eight percent of May sales were foreclosures and three percent were short sales. Foreclosures sold for an average discount of 18 percent below market value in May, while short sales were discounted 11 percent.

The percent share of first-time buyers continued to underperform, representing less than one- third of all buyers at 27 percent in May, down from 29 percent in April; they were 29 percent in April 2013.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage dropped to 4.19 percent in May from 4.34 percent in April, and is the lowest since June 2013 (4.07 percent).

NAR President Steve Brown, co-owner of Irongate, Inc., Realtors® in Dayton, Ohio, said housing fundamentals are showing slight improvement in markets across the country. “Many potential buyers were left on the sidelines beginning last summer as affordability declined amidst rising home prices and interest rates,” he said. “The temporary pause in rising interest rates and more homes for sale is good news – especially for first-time home buyers – who likely have a better chance in upcoming months to make a competitive offer that’s in return accepted by the seller.”

The median time on market for all homes was 47 days in May, down from 48 days in April; it was 41 days on market in May 2013. Short sales were on the market for a median of 125 days in May, while foreclosures typically sold in 57 days and non-distressed homes took 44 days. Forty-one percent of homes sold in May were on the market for less than a month.

All-cash sales comprised 32 percent of transactions in May, unchanged from last month and down from 33 percent in May 2013. Individual investors, who account for many cash sales, purchased 16 percent of homes in May, down from 18 percent in April; they were 18 percent in May 2013. Sixty-eight percent of investors paid cash in May.

Single-family home sales rose 5.7 percent to a seasonally adjusted annual rate of 4.30 million in May from 4.07 million in April, but remain 5.7 percent below the 4.56 million pace a year ago. The median existing single-family home price was $213,600 in May, up 4.9 percent from May 2013.

Existing condominium and co-op sales remained unchanged in May from April (as well as May 2013) at an annual rate of 590,000 units. The median existing condo price was $212,300 in May, which is 6.6 percent higher than a year ago.

Regionally, existing-home sales in the Northeast rose 3.3 percent to an annual rate of 620,000 in May, but are 3.1 percent below a year ago. The median price in the Northeast was $256,700, down 0.9 percent from May 2013.

In the Midwest, existing-home sales jumped 8.7 percent to an annual rate of 1.13 million in May, but are still 7.4 percent below May 2013. The median price in the Midwest was $165,900, up 4.0 percent from a year ago.

Existing-home sales in the South increased 5.7 percent to an annual level of 2.05 million in May, but are down 0.5 percent from May 2013. The median price in the South was $184,800, up 4.4 percent from a year ago.

Existing-home sales in the West rose 0.9 percent to an annual rate of 1.09 million in May, and are 11.4 percent below a year ago. The median price in the West was $297,500, which is 8.4 percent above May 2013.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

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NOTE:  For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.

1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR rebenchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.

Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger data sample – about 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single- family sales accounted for more than 90 percent of transactions and condos were measured only on a quarterly basis).

3The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.

The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single- family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.

May sees rising median sale prices, but lower volume

by Stats From Long and Foster Real Estate, Inc
 
May sees rising median sale prices, but lower volume
Homes continue to move off the market quickly
Summer is fast approaching, yet across the Mid-Atlantic, the spring-selling season has yet to fully peak. While median sale prices rose last month, the number of sales declined when compared to May 2013. However, homes are selling quicker than this time last year and inventory is increasing, according to our May 2014 Market Conditions Report.  At Long & Foster, we kept pace with the market, which meant a decline in our sales volume and units compared to May 2013. Our mortgage, title and insurance companies earned about the same percent of the Long & Foster business as last year.

While the year-over-year comparisons reveal declines in the market, those figures don't tell the whole story. Low interest rates and low inventory drove the growth of 2013, and while the conditions are similar this year, we're seeing more stabilized improvements. Home values in many cities around the country are nearing pre-recession levels, as is inventory. It's a steadying of the market, predicted by both the National Association of Realtors and Mortgage Bankers Association, and I'm confident it will keep the housing industry healthy and well positioned for future growth.

By the Numbers Wrap-up for May 2014
 
  • Real Estate: Almost $3 billion in sales volume, a 10 percent decrease from May 2013, for a year-to-date total of almost $12.5 billion
  • Real Estate: 7,927 unit transactions, an 11 percent decrease from May 2013
  • Property Management: Created 92 new accounts and referred 53 of our current accounts to Long & Foster Real Estate sales agents for potential sales listing in the month of May
  • Rental Service Center: Processed 1,698 applications and paid 1,214 rental cases, which includes placing a tenant, ratifying the lease and paying the leasing commission
  • Mortgage: 489 customers served, earning close to 22 percent of Long & Foster business
  • Title: 1,288 customers served, earning nearly 46 percent of Long & Foster business
  • Insurance: 326 new policies issued, earning almost 12 percent of Long & Foster business

 

6346 32nd Street, NW * Washington, DC 20015

Click Here to View Virtual Tour

 

Welcome to this stately center hall colonial located on a quiet tree-lined street in Barnaby Woods, one of Washington’s most sought after neighborhoods.  Originally built in 1940, this exquisite home has been impeccably maintained and extensively updated over the years while retaining its original charm.  This wonderful home offers an elegant living room with fireplace and French doors to tranquil screened porch, formal dining room, renovated Silestone kitchen, separate breakfast room with custom built-ins, and main level powder room. There are three bedrooms and two full baths on the second level, including a spacious master bedroom suite. The upper level features a private fourth bedroom with skylights and a bonus room. The walk-out lower level has a family room with French doors to patio, updated half bath, laundry/mudroom and garage.  The enchanting generously sized back yard features a beautifully landscaped garden with a Flagstone patio, colorful plantings, and flowering trees. With its gracious appointments, versatile floor plan, and great entertaining flow, this exceptional residence offers outstanding space, livability, and light.

 

This home has a superb location convenient to public transportation, Rock Creek Park, Lafayette Elementary School with its park, playground and tennis courts, the Avalon Theatre, the Broad Branch Market, Politics and Prose, and the fine dining and shopping of upper Connecticut Avenue and Friendship Heights.

 

MAIN LEVEL

*Inviting entry foyer with an archway and intricate moldings

*Elegant living room with wood burning fireplace with marble surround, crown molding, sconce lighting and French doors to screened porch

*Formal dining room with chair rail and crown molding

*Renovated kitchen with Silestone countertops, Dacor gas convection oven, 12 inch ceramic tile flooring, under mount lighting, glass front cabinets and outside entrance

*Bright breakfast room with custom built-ins, overhead lighting, crown molding and large picture window with gorgeous view of the backyard

*Powder room with pedestal sink

*Delightful screened porch with ceiling fan and bead board ceiling overlooking magnificent garden

 

SECOND LEVEL

*Charming landing area with two linen closets

*Spacious master bedroom with ceiling fan, walk in closet with organizing system and additional closet with organizing system

*Master bath with shower

*Second bedroom with ceiling fan and dressing area with closet

*Dual entry bath

*Third bedroom with built-in bookcases, large picture window and closet

 

UPPER LEVEL

*Spacious fourth bedroom with wall-to-wall carpeting, skylights, under the eaves storage, and walk-in closet---the perfect private retreat

*Bonus room with two windows, under the eaves storage, and overhead lighting---potential office or playroom

 

LOWER LEVEL

*Large bright family room with brick fireplace, recessed lights, chair rail molding, wall-to-wall carpeting, decorative arched nook and French doors to patio

*Updated half bath with pedestal sink

*Laundry/mudroom with front loading GE super capacity washer and dryer, built-in shelving and access to garage

*Garage

 

 

ADDITIONAL AMENITIES

*Lovely millwork and architectural details such as archways and decorative molding

*Extraordinarily beautiful yard with Flagstone patio

*Flagstone front walkway and screened porch

*One car garage

*Fabulous location

 

SPECIFICS

Price:  $1,049,000

Lot Size:  9,213 square feet

Legal Description: Lots 121, Square 2350

Subdivision:  Chevy Chase (Barnaby Woods)

Annual Taxes:  $7,844

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Photo of Phyllis Wiesenfelder Real Estate
Phyllis Wiesenfelder
Long & Foster Real Estate, Inc.
4650 East West Highway
Bethesda MD 20814
Direct: (301)215-6915
Mobile: (301)529-3896
Fax: Office: 301-907-7600