Little Cheer in House Sales/Price Data - Housing Tracker

Quote of the Day

"I believe there are regional economies capable of continuing to move in a forward motion. But not this time. I do not believe the Puget Sound is insulated." – Patrick McCourt, CEO of large developer Barclays North, owner of millions of dollars worth of land in Washington state, on the Seattle housing market. (Washington Herald Net, Apr. 27th)

Home Sales and Price Data

U.S. Home Vacancies Rise to Record on Foreclosures. “Census Bureau: A record 18.6 million U.S. homes stood empty in Q1 as lenders took possession of a growing number of properties in foreclosure. The figure is 5.7% higher than a year ago, when 17.6 million properties were vacant. The vacancy rate, the share of homes empty and for sale, rose to 2.9%, the highest since the bureau started keeping count in 1956. About 2.3 million empty homes were for sale, compared with 2.2 million a year earlier.” (Bloomberg, Apr. 28th)

Vacant Homes Hit New Record High In First Quarter. “Census Bureau: The West had the biggest gain in vacancy rates among homeowner [in Q1’08], rising to 7% in the January-March period from 6.5% in Q4’07. Vacancy rates fell in the Midwest and South, but rose in the Northeast.” (Yahoo! Finance, Apr. 28th)

Mass. Single-Family Home Prices Plummet In March. “Real estate tracker firm The Warren Group: “The median price of single-family homes in Massachusetts fell 10.6% in March, the biggest decline since December 1990… Sales of single-family homes fell below 7,000 during Q1’08, the first quarterly drop of that size since 1991. The median price of single-family homes fell 10.6% from $340,000 in March 2007 to $304,000 this past March. Q1’08 [showed] a drop of 8% y/o/y, from $337,000 to $310,000. Single-family home sales plunged in March by 31.6%, from 3,853 last year to 2,637 this year. Year-over-year home sales in Q1 declined 27%, from 9,434 to 6,891.” (Boston Business Journal, Apr. 28th)

Housing Slump Hits Builders. “Housing Consultants Inc.: In 2007, a paltry 5,556 permits to build new homes were filed in the nine counties that make up southeastern Michigan. That was nearly half the number of permits filed in 2006 and 20,994 less than in 2004, the best year this decade. In Q1’08, fewer than 1,000 permits have been filed, a 25% drop from Q1’07.” (Detroit News, Apr. 28th)

Wichita Home Sales Drop In 1Q. “South Central Kansas Multiple Listing Service: The Wichita metro had a rough first quarter in home sales but continues to see prices push upward. Existing home sales dropped 11.7% compared to Q1’07. But the median sales price of those homes increased by 5.5%, to $95,000. New homes saw similar circumstances. Sales fell 11.6% during Q1, but the median price was up 13.6%, at $192,000. Laura Raudonis, CEO of the Wichita Area Association of Realtors: "Although sales were off in Q1, the inventory of homes available for sale remains fairly tight.” (Wichita Business Journal, Apr. 28th)

Restructuring In Housing Predicted For The Future. New Jersey: “Jeffrey G. Otteau, of the Otteau Valuation Group: “Baby boomers [will] be trading out and trading down on a scale like you never saw before. Generation Y has little or no interest in suburban locations like their parents. They want a downtown which simulates a college campus lifestyle… In the future… first time buyers [will be] closer to 40 years old. It will be a luxury rental component for Generation Y buyers. This is a me-oriented generation... They'll pay up to $3,000/month for rent rather than spend $4,000/month for a mortgage. They prefer to eat out then cook.” (Courier Post Online, Apr. 27th)

Economy Puts Crimp In Condo Projects. “Riviera Southshore [has] received a one-year extension from the City of Bradenton. The riverfront project, which was approved for 691 condominiums, is the latest project to be shelved temporarily. Riviera Southshore joins the ranks of the Pink Palace, 309 10th St. W., Tarpon Pointe, 234 Sixth St. N.E., Downtown City Central, 15th Street West and Manatee Avenue West and Magnolia Lakes, 48th Street Court East, all of which have postponed or changed development plans. The median price of existing condos in the Bradenton-Sarasota market fell 32% from March 2007 to March 2008, so it's no surprise condo developers are holding off on several proposed projects.” (Bradenton Herald, Apr. 27th)

Barclays North: The Decline Of A Real Estate Powerhouse. Seattle: “Northwest Multiple Listing Service: As of March, the Snohomish countywide median price for single-family homes and condominiums had dropped nearly 7% from March 2007 [vs.] a 7.7% decline in median prices nationwide (National Association of Realtors). In the West as a region, the median price has fallen 15%. Allison Butcher of the Master Builders Association of King and Snohomish Counties: "Compared to where we've been, it seems like a dramatic shift.” While foreclosures still are well below the average nationwide rate here, people aren't flocking to buy new homes, either…Home sales were down 35% in March compared with a year ago.” (Washington Herald Net, Apr. 27th)

How The Airline Industry’s Recent Financial Problems Affect Vegas. “While the Las Vegas real estate market remains terrible, resale home inventories are sky-high and Nevada foreclosures are still the worst in the nation… There are signs that, for the new-home market at least, the bottom may have been reached. New-home inventory has dropped to a recent low of about 1,500 homes, and about 500 of those are age-restricted for those 55 and up. Meantime, new home sales rose for the third straight month in March. Although the numbers are still well below those in recent years, the signs are looking a little better for homebuilders.” (Las Vegas Sun, Apr. 27th)

Arbor Custom Homes Adding Growth Rings. “Oregon: While other homebuilders around Portland are auctioning houses or simply hoping 2008 is no worse than last year, Arbor Custom Homes hopes to sell about 660 homes this year. That's 10% more than last year. And 2007 sales were 13% higher than 2006… Brad Hosmar, Arbor's director of product development: The market's not as bad as many homebuyers think… Arbor, whose parent company is West Hills Development, has been the beneficiary of some good fortune, including government growth-management policies that have artificially constrained the land supply and made Arbor's holdings more valuable.” (The Oregonian, Apr. 26th)

Auctions Aim To Sell Slow-Moving Inventory. “The California Building Industry Association reported that in March, permits were pulled for just 2,964 single-family homes statewide, down 63% from March 2007. CBIA Chief Economist Alan Nevin noted the number of single-family permits issued in Q1’08 was the lowest total in recorded memory with declines throughout the state. Nevin: "The only problem (with builders selling off standing inventory) is that when the market comes back again, there's not much in the way to sell," he said. The lack of building lots and land sold at a fire sale could create a "worrisome" problem for the future.” (Contra Costa Times, Apr. 25th)

County Says Median Home Price Up 4% Last Year. Kentucky: “Jefferson County Property Valuation Administrator: The median home price in Louisville last year climbed more than 4%. Chuck Kavanaugh, EVP of the Home Builders Association of Louisville: The report showed the median sales prices rose to $147,000 from $141,000 in 2006. The median price for homes sold by members of the Greater Louisville Association of Realtors last year was $137,000, essentially flat from the year before. The Louisville group and the National Association of Realtors say those prices also remained flat in the seven-county metropolitan area.” (Courier Journal, Apr. 25th)

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Comments

[Tom Lindmark:]

We've been hearing talk in Phoenix about homeowners facing foreclosure who are stripping their homes prior to walking away. Now their placing ads for the building materials. Here's a link to my blog-blog.metro-real-estate.../. It contains a copy of one of the ads. You will not believe what they're selling.

2008 Apr 29 04:10 PM

[Tom Lindmark:]

Relative to my comment above, so you don't get lost, here's a link directly to the post-blog.metro-real-estate....

2008 Apr 29 04:16 PM