The National Association of Realtors® reported that sales of existing homes dropped to a seasonally-adjusted annual rate of 4.93 million as compared to expectations of a 5.18 million existing homes sold. Projections were based on October’s reading of 5.25 million. November’s reading showed a 6.10 percent dip in sales of existing homes and was the lowest reading since May.
Fed Chair Janet Yellen said last week that the less than robust housing recovery is due in part to tight lending standards. Lawrence Yun, chief economist for the National Association of Realtors®, said that November’s reading was likely an aberration due to volatility in the stock market, which could have dampened home buyer enthusiasm.
Analysts expect easing of mortgage guidelines and an improved job market to help increase home sales. The national median price for existing homes rose to $205,300 in November, which represented a year-over-year increase of five percent. Inventories of used homes rose to a 5.10 month supply, which was more than double the 2.01 month supply of existing homes for sale in November 2013.
FHFA Reports Year-Over-Year Increase in Home Prices
The Federal Housing Finance Agency (FHFA) reported a monthly gain of 0.60 percent for home prices associated with mortgages owned or backed by Fannie Mae and Freddie Mac. FHFA said that home prices rose 4.50 percent year-over-year in October as compared to the October 2013 reading of 4.40 percent year-over-year. The increase in FHFA home prices was likely connected to a decrease in foreclosure rates and fewer distressed sales.
FHFA house prices encompass the nine census divisions. On a month-to-month basis, FHA home prices rose by 0.60 percent in October. Month-to-month home prices by census division ranged from -0.30 percent for the Pacific division to +1.50 percent for the Atlantic division. On a year-over-year basis, home prices increased for all nine regions and ranged from +0.80 percent in the Mid-Atlantic division to +6.00 percent in the Pacific division.
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About the Author:
Babak Moghaddam graduated from University of Southern California in 1985. He entered the mortgage industry as a compliance auditor at the Bank of New York in 1986 and completed his masters in Business Administration two years later. After seventeen years in the traditional mortgage banking world Babak finally transformed this vision into his own practice in 2002 when he formed Charter Pacific Lending Corp, a mortgage company that has provided over $900 Million in residential real estate loans throughout Southern California. Babak and his team do things a little differently than other mortgage providers. They work as financial advisors, because they have come to realize that a mortgage is a very powerful financial tool. And just like any other financial tool, it should be managed as part of the overall financial management plan to reach every home owner’s long and short-term financial goals much faster. You can contact Babak for a free consultation and strategy session at (800) 322-1217 X103.