NAR reports Home Prices are up in Most Metro Areas
The National Association of Realtors (NAR) reported last week that median home prices rose in 120 out of 149 metropolitan areas for the 3rd quarter of 2012 as compared to the 3rd quarter of 2011.
Lawrence Yun, NAR chief economist, said “housing inventories have been gradually trending down from a record set in the summer of 2007. Earlier this year, a broad equilibrium began to develop in most areas between home buyers and sellers, which led to a sustained upturn in home prices. We expect fairly normal appreciation patterns in 2013, but there is a risk of price acceleration if builders are unable to increase supply to meet the needs of our growing population and household formation."
The median selling price for existing condos was $180,000 for the 3rd quarter of 2012, which translates into a 7.7% increase from the same period in 2011. For the 54 metro areas covered for condos, 33 areas showed increases and 21 areas showed declines.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said "Historically low mortgage interest rates are encouraging many buyers who were on the sidelines. Sales this year are notably higher than the levels seen in 2008 through 2011, so we're clearly in a recovery phase with rising sales, declining inventory and rising prices. Of course the recovery would be stronger and more stable if we could return to safe but sensible mortgage underwriting standards."
NAR also noted the following trends:
- First-time buyers purchased 32 percent of all homes in the third quarter, down from 34 percent in the second quarter; they were 32 percent in the third quarter of 2011.
- The share of all-cash home purchases was 27 percent in
the third quarter, down from 29 percent in the second quarter and 29 percent in the third quarter of 2011.
- Investors, who make up the bulk of cash purchasers and
compete with first-time buyers, accounted for 17 percent of all transactions in the third quarter, down from 19 percent in the second quarter and 20 percent a year ago.
Median Home Prices
Change from 3rd Quarter 2011
Change in Existing Home Prices
increase in Existing Home Sales from 3rd Quarter 2011
The breakdown by region for existing single family homes is as follows:
The entire story can be read here.
According to the Freddie Mac survey, average mortgage rates had mixed results for the week ending Thursday, November 8, 2012. The average 30 year mortgage increased from 3.39% to 3.40% and the average 15 year mortgage decreased from 2.70 to 2.69.
Mortgage rates one year ago were 3.99% and 3.30% for the 30-year and 15-year fixed mortgages.
Snapshot of the Malden Real Estate Market
Source: MLS Property Information NetworkSingle Family Condos Multi Family # of Listings: 44 41 27 Avg. Liv.Area SqFt: 1,730.80 1,071.68 2,487.00 Avg. List$: $309,040 $208,239 $380,897 Avg. List$/SqFt: $192 $213 $160 Avg. Days on Market: 75.68 70.17 190.74
Paul Weston is a licensed Real Estate Borker serving Malden and the Greater Boston area.
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Website, including contact information: www.liveinmalden.com