Register Real Estate Advisors

Housing affordability conditions have reached the highest level since recordkeeping began in 1970, according to the National Association of Realtors.

NAR’s Housing Affordability Index rose to the record high 206.1 in January, based on the relationship between median home price, median family income and average mortgage interest rate.  The higher the index, the greater the household purchasing power.

An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20% down payment and 25% of gross income devoted to mortgage principal and interest payments.    For first-time buyers making small down payments, the affordability levels are relatively lower.

NAR President Moe Veissi, broker-owner of Vessi & Associates Inc., in Miami said this latest data underscores buyer opportunities in today’s market.  “This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home,” he said.  “For buyers who can qualify for a mortgage, now is a very good time to become a homeowner.”

NAR projects the affordability index for all of 2012 will be at an annual high with little movement in mortgage interest rates or home process during the year.  “Housing inventory levels have declined to a point where conditions are becoming much more balanced in much of the country,” Veissi said.  “If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth.”

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.

AUSTIN (Austin Business Journal) – According to the National Association of Realtors (NAR), housing affordability is at an all-time high.

NAR’s housing affordability index measured 206.1 in January, up 16.4 points from the previous year.

The index is calculated by combining housing prices, household incomes and mortgage rates. A baseline index of 100 means that a household with the area’s median income matches the requirements needed to purchase a median-priced home with a 20 percent down payment.

NAR President Moe Veissi believes the high level of affordability with declining housing inventory could help stabilize the market in many parts of the United States.

“If access to credit improves,” he said, “we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth.”

The Chicago-based trade organization began using the housing affordability index in 1970.

COLLEGE STATION (Real Estate Center) – Existing home sales across the state surged in February, reflecting a stronger market, an improving economy and “better weather than February last year,” said Real Estate Center Research Economist Dr. Jim Gaines.

“In some cases, the increased sales occurred within the lower-priced home market as mortgage lending requirements have improved,” Gaines said.

Sales in Texas last month were up 21 percent over February 2012, according to Multiple Listing Service (MLS) data compiled by the Center. The National Association of Realtors reported an 8.8 percent year-over-year jump in sales.

Median prices continued to be flat across the state as a whole, but they exhibited wide variation among individual markets, with some markets showing significant surges and others further declines.

“Median price in the four major markets (Dallas, Houston, Austin and San Antonio) were essentially flat, with more significant changes occurring in the smaller markets where large percentage changes can occur more easily,” Gaines said.

COLLEGE STATION (Real Estate Center) – The National Association of Realtors (NAR) announced this week that it will revise its total existing home sales and unsold inventory data downward by as much as 20 percent.  The Real Estate Center’s housing market expert, Research Economist Dr. Jim Gaines, said the revision is because of sales reporting issues as well as NAR’s internal adjustment process to convert reported MLS sales into total existing home sales.  “NAR extrapolates the reported MLS sales data into estimated total existing home sales based on adjustment factors developed from the 2000 census, which are now outdated,” Gaines said.  “NAR said it wants to avoid double counting duplicate sales records from consolidated MLSs and to better account for shifts in population, fewer for-sale-by-owner sales and other factors. Normally, NAR adjusts the sales based on decennial census results, but the 2010 census did not collect home sales data as previous censuses did. NAR had to find other ways to make adjustments and backdate their results.”  The revision could make the housing bust reported over the past five years look statistically even deeper than originally reported.  “Reported existing home sales during the past five years have been hovering around five million units per year, the lowest sales volume in more than a decade,” Gaines said. “If the pace of sales is significantly lower than initially reported, it may take longer than originally anticipated to clear the so-called ‘shadow inventory.’”  The revisions should have little to no impact on those who use the Center’s sales data, Gaines said.  “The Center only provides sales and listing inventory data as reported by each MLS with no overall adjustments,” he said. “Consolidation of many of the larger MLS services some years ago eliminated most of the duplication problems and other reporting issues associated with the NAR database. The Center also scrubs the reported sales data to eliminate possible duplicates, so the sales reported by the Center are not total home sales, but rather the volume of sales submitted by the local MLS.”  The revised data, which will be released Dec. 21, will not include the reported number of months of inventory, monthly percentage changes or home prices. These data are expected to remain the same regardless of the sales and inventory or inventory adjustments.

TEXAS REALTOR AMONG 2012 NAR OFFICERS

WASHINGTON, D.C. (National ssociation of Realtors) – Texas Real Estate Commission Chair and Real Estate Center Advisory Committee ex-officio member Avis Wukasch has been named
a National Association of Realtors (NAR) 2012 regional vice president.

Wukash, a Williamson County Realtor, will represent NAR’s Region X, which includes Texas and Louisiana.

The association installed its 2012 officers yesterday at the 2011 Realtors Conference and Expo in Anaheim, California.

Miami Realtor Maurice “Moe” Veissi will serve as NAR president, while Gary Thomas of Orange County will be president-elect. First vice president will be Steve Brown, a Realtor from Dayton, Ohio.

RREA is honored to be the featured brokerage in the national REALTOR Magazine this month. They showcase innovative brokerages that do things a little differently. We were showcased because of our use of the internet and video production as a means of ensuring our client’s homes have the widest possible exposure.

We are honored to be mentioned and are constantly striving to ensure our company has the latest technology, best educated agents, and is the most effective brokerage in the Houston metro area.

Check out the link. If you are a Realtor, your copy will be in your mailbox soon.

http://realtormag.realtor.org/for-brokers/standouts/article/2011/10/lights-camera-sale

 WASHINGTON, D.C. (Associated Press) – The National Association of Realtors announced Monday that its seasonally adjusted index of home sales agreements rose 8.2 percent from January to February.

January’s reading was revised slightly downward to 90.2, and the February reading was 97.6.

The index is considered a barometer for future sales activity because there is typically a one- to two-month lag between a signed sales contract and a completed deal.

Sales increased 9 percent in the South and Northeast from January to February, fell nearly 5 percent in the West and rose nearly 22 percent in the Midwest.

NEW YORK (CNNMoney.com) – March pending home sales increased from February numbers and from March 2008, indicating that buyers think now is a good time to buy a house.

The Pending Home Sales Index from the National Association of Realtors (NAR) showed a 3.2 percent gain to 84.6 from February, when it was 82. The index stands 1.6 percent higher than a year ago.

The index is understood to be a forward indicator of home sales trends as it measures contracts signed, not completed sales. The uptick may indicate that home prices have fallen low enough for buyers to get off the fence.

“If inventory goes down — it’s at just under ten months now — to below eight months, that would mean we’re on the way to a sustainable recovery,” said Lawrence Yun, NAR’s chief economist.

Anecdotal evidence indicates that trend may be happening. Realtors and other industry insiders are seeing rising open house attendance and multiple bids on some particularly desirable properties.

Today, buyers are more likely to bid because they perceive the market as at or near its bottom. An April Gallup Poll reported that 71 percent of Americans thought it was a good time to buy a house.

The South saw the largest gain of any region, with pending home sales jumping 8.5 percent from February to March. Pending sales were 7.7 percent higher in March compared with the same month a year ago.