Home Prices

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NAR: Existing Home Sales Slip 2.3% In April

Existing home sales for April slipped 2.3 percent according to The National Association of Realtors. This comes on the back of the sharp correction in new home sales reported yesterday by the Census Bureau. Existing home sales for April posted at a seasonally adjusted annual rate of 5.57 million units. While down from the previous month, this was roughly 1.6 percent higher than last year. Lawrence Yun, NAR's chief economist, pegged the sales softness on a lack of affordable homes...  "Homes in the lower- and mid-market price range are hard to find in most markets, [...]

By | 2017-08-19T10:32:21+00:00 May 24th, 2017|Real Estate, Texas Home Prices, Texas Real Estate|0 Comments

Housing Bubbles A Global Problem

Housing bubbles are easy to see, unless of course you are one those people in the real estate industry who feign ignorance for the sake of sales. For those who care to look, it is blatantly obvious that there is an echo bubble in real estate prices. It's a global problem that poses a number of challenges, and the potential capital destruction that would result from its collapse is probably larger than many want to admit. Everyone has to dance to the music, until the music stops. Looking at an updated index of San Francisco [...]

NAR Finally Gets Real About Home Affordability Issues

The National Association of Realtors is out with a new method of gauging home affordability. As part of NAR's look at the the growing rift between housing availability and home affordability, NAR has developed a new affordability distribution curve and a home affordability score. The new monthly research is designed to look at home affordability conditions among different income percentiles, gauging how many homes on the market are actually affordable to various buyer income groups. The new affordability distribution curve and score show that many U.S. homes are no longer affordable to typical prospective buyers. [...]

Monkey Business – Expert Says Affordable Homes Are Going Away

Affordable homes are going away. With the prospect of rising rates, now is the time to buy a home. That is apparently the opinion of Dr. Luis Torres, a research economist with the Real Estate Center at Texas A&M. Torres, in a rather interesting piece in the Houston Business Journal seems to be confident that Houston's real estate market is on the road to recovery:  “I can say this with some certainty that the worst of the downturn is behind us.” I'm not surprised that HBJ would print a piece like this (after all it is [...]

Reign Of Economic Error Continues To Plague Housing Market

The reign of economic error holding back the U.S. housing market was on display again this week. New home sales for December came in well below estimates, falling 10 percent from the November euphoria. The National Association of Realtors reported that existing home sales softened to a seasonally adjusted annual rate of 5.49 million in December. That was a 2.8 percent decline from the previous month, and roughly flat from the previous year. Year-over-year declining mortgage rates for most of 2016 helped to make it the best year for existing home sales since 2001, but [...]

Why Home Builders Can’t Meet Housing Demand

America's home builders are having a difficult time meeting housing demand, or so they say. While access to credit is cited as a factor that is holding back builders, that's only a partial cause of builders' reluctance to put their money where their optimism index mouth is. As NAHB chief economist, Robert Dietz, explains it builders are finding it more difficult and expensive to develop land. Home builders should be thanking the The Federal Reserve for this warped, manipulated landscape, but most builders will likely avoid the discussion. The first rule of fight club is [...]

By | 2017-01-12T21:38:57+00:00 January 11th, 2017|Development, New Home Sales, Real Estate, Spin Cycle|1 Comment

September New Home Sales: Let The Revisions Begin!

A few months back I wrote that the new new home sales numbers from the Census Bureau were a work of fiction, and it turns out I was correct. The original summer numbers from the Census now look even more like election year theater. Census posted new home sales for September, and the downward revisions to the previous three months were a combined 93,000 units! New home sales for September posted at a seasonally adjusted annual rate of 593,000. The average price of a new home in September was $377,700, with the median price coming [...]

By | 2016-10-27T12:55:21+00:00 October 27th, 2016|Development, Mortgage Rates, New Home Sales, Real Estate|0 Comments

Texas Housing Market Meets The Fed’s ‘Game of Thrones’ Economy

The latest issue of Tierra Grande is out, and it contains more examples of the Federal Reserve's fingerprints on the Texas housing market. This new batch of evidence is contained in an article titled 'Game of Homes - The Supply-Demand Struggle'. What is thoroughly entertaining is that the two Dallas Fed employees (both recent college graduates apparently) working on this latest missive appear to completely ignore their employer's responsibility for the distortions in the Texas housing market while making a complete mockery of the economics profession. Collaborating with a PhD from TAMU, they lay out [...]

By | 2016-11-20T13:26:48+00:00 October 23rd, 2016|Economy, In the Press, Politics, Real Estate, Spin Cycle|0 Comments

New Home Sales Decline From Summer Peak, Median Price Lowest Of 2016

The Census Bureau reported a 7.6 percent decline for new home sales compared the election-year surprise we saw for July. Compared to August of last year, new home sales were still 20.6 percent higher than last year. It appears super low mortgage rates continued to provide some lift to the new home market. What did not rise in the latest Census report is the median price of a new home contracted in August. The median price of a new home fell to $284,000, down from $300,200 last year. The average price of a new home [...]

Lennar Homes Sees Declining Deliveries & New Orders In Houston During Q2

Lennar Homes reported fiscal second quarter numbers this week. Although the company posted higher revenues and earnings for the quarter, Lennar's Houston numbers were a noticeable soft spot. As one of the Houston area's largest new home builders, Lennar is a good gauge for the overall strength of the Houston market. As one might expect, the local market for new homes is still facing the headwinds of weak employment growth and general economic weakness stemming from the downturn in the energy sector. For the second quarter, Lennar delivered 613 new homes at an average sale [...]