Tag Archives: housing recovery

housing.prices

Phoenix home prices jump 20.4%

Home prices increased in September in most major U.S. cities, more evidence of a housing recovery that is providing a lift to the fragile economy.

Standard & Poor’s/Case-Shiller reported Tuesday that its 20-city index of home prices rose 3 percent in September compared with the same month last year. Prices also gained 3.6 percent in the July-September quarter compared with the same quarter in 2011.

Across the nation, prices increased in 18 of 20 cities over the 12-month period. In Phoenix, prices jumped 20.4 percent over that stretch to lead all cities. Prices in Atlanta showed a modest 0.1 percent increase, ending 26 straight consecutive year-over-year declines.

Prices also rose in September from August in 13 cities. Five metro regions posted declines, while two were unchanged.

In Las Vegas, one of the hardest hit during the housing crisis, prices increased 1.4 percent — the biggest month-over-month gain. Prices rose 1.1 percent in Phoenix and Minneapolis. The largest decline was in Cleveland, where prices fell 0.9 percent.

Monthly prices are not seasonally adjusted, so some of the declines may signal the end of the summer buying period.

David M. Blitzer, chairman of the Case-Shiller index, said that when adjusting for seasonal factors, only one city showed a decline in September versus two in August. “Despite the seasons, housing continues to improve,” Blitzer said.

The S&P/Case-Shiller index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The September figures are the latest available.

Steady increases in home prices have helped drive a modest recovery in the housing market. Rising prices encourage more potential buyers to come off the sidelines and purchase homes. And more people may put their homes on the market as they gain confidence that they can sell at a good price.

Higher home prices can also make homeowners feel wealthier and more likely to spend more. Consumer spending accounts for about 70 percent of the U.S. economy.

A big reason for the rebound is that the excess supply of homes that built up before the housing crisis has finally thinned out. The number of previously occupied homes available for sale has fallen to a 10-year low. The inventory of new homes is also near the lowest level since 1963.

At the same time, more people are looking to buy or rent a home after living with relatives or friends during and immediately after the Great Recession.

Those trends are also pushing up home sales and construction. Sales of previously occupied homes are near five-year highs, excluding temporary spikes in 2009 and 2010 when a homebuyer tax credit boosted purchases.

Builders, meanwhile, are more optimistic that the recovery will endure. A measure of their confidence rose to the highest level in six and a half years this month. And builders broke ground on new homes and apartments at the fastest pace in more than four years last month.

housing.prices

Home prices jump 22.1 percent in Phoenix

A measure of U.S. home prices jumped 5 percent in September compared with a year ago, the largest year-over-year increase since July 2006. The gain reported by CoreLogic offered more evidence of a sustainable housing recovery.

The real estate data provider also said Tuesday that prices declined 0.3 percent in September from August, the first drop after six straight increases. The monthly figures are not seasonally adjusted. CoreLogic says the monthly decline reflects the end of the summer home-buying season and not a softening in the housing recovery.

Some of the biggest increases were in states that suffered the worst from the housing bust. Home prices in Arizona jumped 18.7 percent in the past year, the most of any state. Home prices in Idaho rose 13.1 percent, the second largest. Nevada’s home values rose 11 percent.

Home prices jumped 22.1 percent in Phoenix, the metro area with the biggest gain. Prices in Houston rose 6.6 percent, the second-highest increase.

The states with the biggest drops were Rhode Island (3.5 percent) and Illinois (2.3 percent).

Steady price increases should give the housing market more momentum when home sales pick up in the spring. Rising prices encourage more homeowners to sell their homes and entice would-be buyers to purchase homes before prices rise further.

Other measures have also shown healthy gains in home prices over the past year. The Standard & Poor’s/Case Shiller 20-city index rose 2 percent in August compared with a year ago, a faster pace than the previous month.

The price gains in the past year reported by CoreLogic were widespread. Prices have risen in all but seven states. And they declined in only 18 out of 100 large cities that are tracked by the index.

CoreLogic’s price index is based on repeat sales of the same homes and tracks their price changes over time.

Several reports last month showed that the housing market is improving, though from depressed levels.

Home builders started construction on new homes and apartments at the fastest pace in more than four years in September. They also requested the most building permits in four years, a sign that many are confident that home sales gains will continue.

New home sales jumped last month to the highest annual pace in the past two and a half years. Sales of previously occupied homes dipped in September but have risen steadily in the past year.

Sales of both new and previously occupied homes are still below levels that are consistent with a healthy housing market. That’s partly because the supply of available homes for sale remains low. And many prospective home buyers are struggling to qualify for a mortgage or scrape together the bigger down payments that many banks are requiring.

home prices are rising

Phoenix-Area Home Prices Continue To Rise

Phoenix-area home prices continue to rise, but a short supply of available homes is causing the amount of activity in the market to fall. A new report from the W. P. Carey School of Business at Arizona State University gives an update on the hard-hit housing market of Maricopa and Pinal counties, as of April:

  • The median single-family home prices are up 25 percent from a year ago.
  • The overall supply of homes for sale is down 54 percent from last April.
  • The number of single-family homes sold this April was down 11.5 percent from last April, largely due to the lack of supply.

Anxious Phoenix-area homeowners will be relieved to see the median single-family home prices in the area went up 25 percent, from $112,000 to $140,000, between April 2011 and April 2012. Realtors will note the average price per square foot went up 16.5 percent in the same timeframe. However, the new W. P. Carey School report indicates we could be seeing even more activity, if more homes were available for sale.

“April is normally a very busy month for home sales, but this year’s sales are weaker than last year’s due to the unusual lack of supply,” says Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “We’re looking at only about 8,800 single-family homes for sale in the Greater Phoenix area, and more than 25 percent are priced at more than $500,000. The inventory of single-family homes for sale under $250,000 with no existing contract is equal to only 21 days of supply.”

Orr says we have a very unbalanced market with many more buyers than sellers. Home prices have been going up since they reached a low point in September 2011. Condominiums and townhomes are included in the boost. Their median sales price rose about 23 percent from April 2011 to April 2012, going from $72,500 to $89,050.

“Demand remains strong in the market, as evidenced by multiple-bid situations for the majority of resale home listings,” says Orr. “Most homes priced well are attracting multiple offers within a couple of days. Up to 20 or 30 offers for a home are becoming common, and often, many offers exceed the asking price. As a result, in the single month from March to April, the overall median sales price increased by 3.8 percent.”

The areas that suffered the most price damage during the recession, such as El Mirage, Maricopa, Tolleson and Glendale, are now seeing the most positive price movement. A few areas that were least affected by foreclosures, such as Cave Creek, Fountain Hills and Wickenburg, are still showing negative price movement.

Overall, foreclosures are down 62 percent in the Phoenix area from last April. However, one note of concern comes from the number of foreclosure starts – homeowners receiving notice their lenders may foreclose in 90 days. That number went up 4.7 percent from last April. Orr says he has seen a slight uptick in the rate of foreclosure notices since the signing of a recent legal settlement between the states and five of the nation’s largest housing lenders.

New-home sales, normal resales and short sales are up year-over-year, and most lenders have recently encouraged troubled homeowners to use short sales as a preferred alternative to foreclosure. Meantime, sales of homes owned by banks, Fannie Mae, Freddie Mac and the government are going down. In fact, so-called “distressed supply” dropped 81 percent from April to April.

“In order for us to see a more stable housing recovery, the basic rules of economics require prices to change enough to bring a new wave of sellers onto the market,” explains Orr. “That hasn’t happened yet, and so far, supply remains insufficient to meet demand.”

Orr’s full report on Phoenix-area home prices, including statistics, charts and a breakdown by different areas of the Valley, can be downloaded. More analysis is also available from knowWPCarey, the business school’s online resource and newsletter.

Shea Homes Arizona Sales Increase, Optimistic About Housing Recovery

The jury is still out about the national housing recovery, but Shea Homes Arizona is noticing a pickup in its sales during the first four months of the year. With three new home communities that have opened since January and three more that will be announced soon, Shea Homes Arizona has already outpaced its 2011 YTD sales by 40%.  During the housing slump, Shea averaged 5 home sales per week in 2010 and 2011 and currently is averaging more than 8 home sales per week already this year.

“We are seeing the same amount of visitors to our communities, but more are buying homes,” said Ken Peterson, VP of Sales and Marketing for Shea Homes. “We think a couple things are taking place, first, more people are becoming eligible to get loans again after going through foreclosures or short sales and second, the resale inventory is so low right now that people are getting frustrated by bidding wars.”

The most interesting trend Shea Homes has seen lately has been the final sales in communities that can now be closed out. La Quintana, La Mirada, Painted Trails, Entrada, Copper Hills, Lost Canyon and Cabrillo Canyon have all just recently closed over the past few months. Escala at Seville and Foothills at Layton Lakes only have one or two remaining model homes or spec homes, bringing the total Shea Homes communities to 12. The SPACES product that opened in early 2010 has only two lots left, in addition to its models, and a second SPACES at Evans Ranch community will be opening very soon.

“Sales are always a good indication of a recovering housing market, but we also added two new product lines this year- duplexes and triplexes and also acre lot luxury homes, which helps us bring in new buyers that we might have missed before,” said Peterson. “We are pretty optimistic for now and happy about the trends we are seeing in Arizona.”

For more information on Shea Homes, visit Shea Homes’ website at sheahomes.com.