HOLIDAY HOME-PRICE TRIMMING
Thanks to a nationwide housing slump that is keeping homes on the market longer, many sellers are trimming prices this winter in hopes of landing a sale.
According to a National Association of Realtors survey, almost 60 percent of recent U.S. homesellers said they had to cut their prices, and about a quarter said they had to lower their price two or more times.
Some agents try to convince clients that starting with an inflated asking price does not work in today’s market.
“These sellers ultimately hurt themselves by overpricing their homes from the start,” said local real estate agent Barry Hoffer. “Their homes do not compare favorably with the competition in that price range, and they ultimately have to reduce the asking price multiple times to get it sold.”
The North Texas Real Estate Information System says pre-owned houses here sell for an average of 96 percent of list price. However, that number does not include markdowns and price cuts that occur when sellers switch agents.
It currently takes an average of 80 days to sell a house in North Texas, up 11 percent from a year ago. Condos take almost four months on average.
Source: Dallas Morning News
Read MoreEXISTING HOME SALES STABLE, CONDO SALES DOWN
Single-family existing home sales were stable last month while the condo sector was down, according to the National Association of Realtors.
Total existing-home sales — including single-family, townhomes, condominiums and co-ops — eased by 1.2 percent to a seasonally adjusted annual rate of 4.97 million units in October from a downwardly revised level of just over five million in September and are 20.7 percent below the 6.27 million-unit pace in September 2006.
The national median existing-home price for all housing types was $207,800 last month, down 5.1 percent from October 2006 when the median was $218,900.
Total housing inventory rose 1.9 percent at the end of October to 4.45 million existing homes, a 10.8-month supply at the current sales pace, up from a downwardly revised 10.4-month supply in September.
Single-family home sales were unchanged from September at the seasonally adjusted annual rate of 4.37 million in October and are 20.8 percent below 5.52 million-unit level in October 2006. The median existing single-family home price was $205,700 in October, down 6.3 percent from a year ago.
Existing condominium and co-op sales fell 9.1 percent to a seasonally adjusted annual rate of 600,000 units in October from 660,000 in September but are 20.2 percent below the 752,000-unit pace in October 2006. The median existing condo price was $223,500 in October, up 4.9 percent from a year ago.
Existing-home sales in the South were unchanged last month, at an annual rate of just over two million but are 19.4 percent below a year ago. The median price in the South was $171,400, down 6.7 percent from October 2006.
Source: National Association of Realtors
Read MoreExisting home sales slipped
In August, 8,480 existing houses were sold in North Texas’ 29-county area, down 10 percent from a year earlier, according to the report from the Real Estate Center at Texas A&M University and the North Texas Real Estate Information System (NTREIS).
For the first eight months of the year, 61,746 homes were sold, down 6 percent from a year ago.
Houses are staying on the market an average of 69 days, up 3 percent from last year, according to NTREIS.
Despite the drop in home sales, the median price continues to increase. It was up 4 percent to $156,000 in August, compared with $150,000 a year earlier.
Source: Star-Telegram
Read MoreJULY EXISTING HOME SALES STABLE
Total existing-home sales slipped 0.2 percent to a seasonally adjusted annual rate of 5.75 million units last month, 9 percent below July 2006′s 6.32 million-unit level, according to the National Association of Realtors (NAR).
- Total housing inventory, which includes single-family, townhomes, condominiums and co-ops, rose 5.1 percent to 4.59 million, representing a 9.6-month supply at the current sales pace, up from a 9.1-month supply in June.
- Single-family home sales slipped 0.4 percent to a seasonally adjusted annual rate of five million from an upwardly revised level of 5.02 million in June, and were 9.3 percent below the year-ago pace of 5.51 million units.
- The national median existing-home price for all housing types was $228,900 in July, down 0.6 percent from July 2006 when the median was $230,200, the highest monthly price on record.
- Existing condominium and co-op sales rose 1.4 percent to a seasonally adjusted annual rate of 750,000 units from 740,000 in June, but were 7.5 percent below the 811,000-unit level in July 2006.
- The median existing condo price was $230,600 in July, up 2.4 percent from a year ago.
- Existing-home sales in the West rose 1.8 percent to an annual pace of 1.12 million, but were 15.2 percent below a year ago. The median price was $349,400, up 0.9 percent from July 2006.
- In the Northeast, sales increased 1 percent to 1.02 million in July, but were 2.9 percent lower than July 2006. The median existing-home price in the Northeast was $290,900, up 5.9 percent from a year ago.
- Sales in the South were unchanged at an annual rate of 2.26 million in July, but were 10.7 percent below a year ago. The median price in the South was $186,300, down 3.2 percent from July 2006.
- Midwest sales fell 2.2 percent in July to 1.35 million, 5.6 percent below July 2006. The median price in the Midwest was $173,800, 1.8 percent below a year ago.
According to Freddie Mac, the national average commitment rate for a 30-year conventional fixed-rate mortgage was up slightly from June’s 6.66 percent to 6.7 percent last month, which is down slightly compared with 6.76 in July of last year. Last week, Freddie Mac reported the 30-year fixed-rate mortgage dropped to 6.52 percent.
Source: National Association of Realtors
Read MoreNationwide Home Sales
Third-highest year! Final 2006 existing-home sales are in and the year was the third-highest on record with 6.48 million sales, 8.4 percent fewer that the record 7.075 million sales in 2005. The second-best year was 2004, with 6.779 million sales. A slight dip closed out 2006, with sales at 6.22 million sales pace, just 0.8 percent slower that in November. However, a 4.9 percent increase in December 2006 pending home sales – a leading indicator – suggests 2007 is shapping up to be another solid year!
Source: Realtor Magazine
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