“Marching Ahead: A Comprehensive Analysis on the Rise of New Home Sales in March”

Despite market challenges, the appetite for real estate remains robust. The yearly pace of sales saw a rise of 8.8% since February, demonstrating unwavering interest in the sector.

“Understanding the Ups and Downs in New Home Sales: March 2024 Insights”

In February, the sales of newly-built houses saw minimal change. Approximately 662,000 homes, seasonally adjusted, were sold during this month, 0.3 percent or 2,000 units less than January’s figures. However, it did mark an increase of 5.9 percent in comparison to sales in February of the previous year. The U.S. Census Bureau and the Department of Housing and Urban Development reported an estimated sale of 60,000 units in the month against 57,000 in the preceding month and 56,000 in February the year before, with no adjustment for seasonal factors. In the year to date, new home sales have seen a rise of 4.4 percent on a year-on-year basis, reaching 117,000 units. During this period, the average selling price hovered around $485,000, with the median price being $400,500. These figures were slightly lower than the previous February’s relative prices of $433,300 and $499,100. The month ended with an estimated inventory of 451,000 new homes for sale, indicating an 8.4-month supply at the current rate of sales, a figure consistent with the previous year’s. Robert Dietz, a National Association of Home Builders economist, pointed out that inventory of ready-made homes had grown by 23 percent year-on-year to 85,000 houses. Simultaneously, homes listed for sale but with construction not yet commenced rose by almost 18 percent from the prior year to 106,000. However, the number of houses available for sale but still under construction fell by 2 percent to 272,000.

“March 2022: A Deep Dive into the Trends and Insights of Existing Home Sales”

Contrary to projections of a slowdown following January, February saw a substantial rise in existing home sales, according to the National Association of Realtors® (NAR). Sales of pre-owned single-family houses, townhouses, condos, and co-op apartments reached a seasonally adjusted annual rate of 4.38 million units, marking a 9.5% jump from the prior month’s 4.0 million and the largest monthly rise since February 2023. However, this figure was still 3.3% lower than the 4.53 million units sold in February 2023.

Economists surveyed by Econoday had forecasted sales of 3.92 million units, while Trading Economics predicted a sales rate of 3.94 million. February saw single-family home sales reach a seasonally adjusted annual rate of 3.97 million, reflecting a 10.3% sequential rise but a 2.7% decline from the year prior. Sales of condos and co-op units were at 410,000 units, 2.5% higher than in January, yet 8.9% less than February 2023.

Simultaneously, there was an uptick in available homes for sale, growing by 5.9% since January and 10.3% from February 2023 to 1.07 million units. However, this is only a 2.9-month supply at the current rate of sales, well under what’s considered a balanced market of five to six-month supply.

Moreover, the median existing home price in February was at $384,500, indicating a 5.7% surge from the previous year’s $363,600. This marks the eighth consecutive month of year-over-year price increases and sets a record for the highest price for February. The median price for single homes stood at $388,700, up 5.6% compared to last year, whereas condo prices experienced a 6.7% yearly growth to a median of $344,000.

“Decoding the Recent Uptick in Residential Construction: A Closer Look”

The optimism among builders continues to surge for the fourth consecutive month as residential building statistics hint towards acceleration. There was an observable uptick in both housing initiations and construction permits in February, demonstrating gains over the January and February 2023 figures. According to data from the U.S. Census Bureau and HUD, new home construction launched at the seasonally adjusted pace of 1.521 million units in the said month. This represents a 10.7% increase from the 1.374 million units in January and a 5.9% rise from the same period last year. Single-family home constructions grew by 11.6% monthly to 1.129 million units and enjoyed a 35.2% year-over-year boost, while there was an 8.5% monthly rise in multifamily home starts. However, these were down by 35.9% annually. Unadjusted for seasonal influences, the month saw the start of 108,100 units, with single-family units making up 79,200 of these. The previous month recorded 97,400 units overall and 69,700 single-family homes. There was also a growth in permits, albeit more modestly. They reached a seasonally adjusted 1.518 million, up 1.9% from the 1.489 million in the previous month, and 2.4% more than the figure a year earlier. Single-family permits climbed by 1.0% to 1.031 million, which is 29.5% up from a year prior. Conversely, multifamily permits showed an upward adjustment of 2.4%, but were 32.8% down from the preceding February. In total, issued permits in the month were 118,300, rising from 114,800, with single-family permits going up from 75,900 to 79,300.

“Decoding the Future: Insights into Today’s Mortgage News and Trends”

As conference season revitalizes, there’s mounting concern around the survival of apple orchards due to the abundance of “applewood smoked” bacon in every buffet spread. A fresh perspective is being applied to everything, from Brussels sprouts to beets. At the L1 event in Los Angeles, I got wind of a book called, “Rethink Everything You Know About Being A Next Gen Loan Officer”. It’s the work of Kyle Draper and Brian Vieaux, in collaboration with 39 other industry heavyweights, offering advice to mortgage originators on cultivating their business marketing and relationships to appeal to a newer generation of homebuyers. A common sentiment echoing through the conference was the current disarray of Congress, focusing more on re-election than implementing impactful reforms. People in our sector need to contemplate the impact of any election on housing and our own business operations. On that note, consider the Mortgage Action Alliance as a platform for effecting change. This week’s podcast, sponsored by Richey May, a long-standing leader in providing specialized services to the mortgage industry, features an interview with Tyler House discussing the crucial role of data integrity in making informed business decisions. On a product note, Truv is offering lending and brokerage services, products, and software that can help lenders save 60-80 percent over competitors. Compass Mortgage, for example, reduced their verification costs by nearly 60 percent while maintaining their conversion rate, according to Justin Venhousen, COO of Compass Mortgage. Truv is also facilitating cost reductions by accelerating the verification process and delivering improved employment data. Don’t hemorrhage money unnecessarily, reach out to TRUV today for your income, employment, insurance, and asset verifications.

“Unraveling the Financial Web: A Deep Dive into Today’s Mortgage and Real Estate Market”

In the previous year, I pointed out that the phrase “today is the only day that doubles as a command” however, some individuals corrected me by suggesting that “March first” can also be interpreted in the same way. Lessons are indeed learnt every day. At L1’s annual event here in Los Angeles, attendees eagerly gather for insights, though some conversations extend beyond mortgages, such as anticipation for the upcoming Daylight Saving Time where we move our clocks an hour ahead. Firms that judiciously saved are now investing funds garnered over 2020 and 2021 in intelligent technology. Still, a minority prefer to allocate these to inconsistent signing bonuses. Lenders are now using the time to analyze, procure and utilize technology which they didn’t have a chance to explore during the pandemic wave 3-4 years ago. All the while, their primary focus remains on generating high-quality, compliant loans, a constant necessity for any successful lender. This week’s podcast is brought to you in part by Richey May -an esteemed provider of advisory, audit, tax, technology and other pertinent mortgage services for nearly 40 years. Listen in for an enlightening discussion with Aubrey Gilmore from Rutledge Claims Management on the subject of customer experiences in hazard insurance. For lenders and brokers weary of the sluggish loan process, Lender Toolkit is your ally to conquer this issue with an unrivalled automated experience outpacing your rivals. With Lender Toolkit, you can navigate your way to a prosperous journey with Encompass Web. Unlock efficient origination with intuitive, automated task-based workflows. Swift pre-approvals and an AI Underwriter that trumps manual tasks. Benefit from Prism Income for automated income verification, minimized manufacturing overheads, and shorter cycle durations. With Disclosure Automation, production staff can effortlessly validate accurate disclosures, saving valuable time and effort. Set to conquer EXP24? Don’t miss a live demonstration of our solutions! Limited slots available so secure yours here. To kickstart the EXP24 excitement, be part of our Supercar Experience on March 18th! Experience go-karts, supercars, networking, and a surprise appearance from Ricky Bobby. More details here. Embrace the Ricky Bobby mantra, “If you ain’t first, you’re last!” Lock in your demo slot today and race towards the winner’s circle.

“Understanding the Unexpected February Dip in U.S. Pending Home Sales”

You may frequently come across instances where economic reports tend to closely adhere to certain standard formats, including anticipated information and specific word sizes. However, seldom does such a word count truly correspond to the rate at which the underlying data changes. This is the very situation we find ourselves examining now.

The market for existing home sales has seen a downturn since late 2022, experiencing consistent dismal performances. Pending Home Sales is another lens through which we can observe this ongoing issue. Instead of focusing on finalized transactions, this examines signings of contracts, thus offering a glimpse into the future potential of Existing Home Sales. Keeping this in mind, it wouldn’t come as a shock if Existing Sales fell once again following the uptick reported last week.

The reasoning behind this assumption follows: Should you be someone who prefers a more thorough explanation with a greater word count, here are a few regional facts showing the alterations in percentages from month to month and year on year:

– Northeast: +0.8% (a yearly decrease of 5.5%)
– Midwest: -7.6% (an annual decline of 11.6%)
– South: -7.3% (a yearly drop of 9.0%)
– West: +0.5% (a decrease of 7.0% at the annual level).

Please note that the original source of this summary is not to be cited.

“Exploring the Unprecedented Surge in U.S. Home Prices: Insights from Case-Shiller and FHFA Reports”

Despite increasing interest rates, home prices kept appreciating last year as reported by both the CoreLogic Case-Shiller indices and the Housing Price Index (HPI) from the Federal Housing Finance Agency (FHFA). However, the growth was not as rapid as the astronomical rates observed during the pandemic and its subsequent fallout. All these indices displayed sustained annual growth but also hinted at recent market laxity.

The Case-Shiller U.S. National Home Price NSA Index, which encapsulates all nine U.S. census divisions, reported a 5.5 percent annual gain in December, which was a slight rise from the November figures. The 10-City Composite exhibited a rise of 7.0 percent, up from 6.3 percent in the previous month, while the 20-City Composite recorded a yearly increase of 6.1 percent, which was higher than the 5.4 percent witnessed in November. Among the 20 cities, San Diego recorded the highest year-on-year gain at 8.8 percent, closely followed by Los Angeles and Detroit registering at 8.3 percent. Portland saw a minor increase of 0.3 percent this month, despite being at the bottom of the list, it did reverse 11 consecutive monthly losses. Month-over-month changes, with no seasonal adjustments, were all in the negative zone.

Brian D. Luke, working in the commodities, real and digital assets department at S&P Dow Jones Indices, commented that despite considerable challenges in the last quarter of 2023, the S&P Case-Shiller Home Price Indices, on a seasonally adjusted basis, managed to set records for the seventh time in a row in 2023, with half of the sampled markets outdoing their previous records.

“The Unanticipated Surge: A Deep Dive into February’s New Home Sales”

Despite challenges faced by the present market for pre-owned houses due to insufficient inventory, the new homes sector remains resilient and continues to bolster the housing industry. The new homes sector displays a superior performance relative to the years before the pandemic.

The pre-owned homes market, even in its weakest state, is significantly larger. However, the focus now is on data related to new homes. Looking closer, we observe that sales of new homes have consistently remained within the threshold set between 2017-2019 for almost two years. In other words, notwithstanding the initial demand surge and plentiful supply in the wake of COVID-related lockdowns, sales of new residences have been progressing steadily.

Geographically, there are considerable variations, frequently as a consequence of the changing weather conditions typical of this season. Here is a breakdown of how different regions fared in January:

In the Western region, there was a massive 38.7% increase. This region went from having the lowest levels in 10 months to posting the highest levels in over a year.

The Northeast region recorded an even bigger 72% increase. However, given the considerably smaller number of units in the region, this figure isn’t as impactful.

In the Midwest, there was a modest 7.7% increase month on month, but it continued to stay below the peak reached in July.

The South observed a fall by 15.6%, landing at the lowest levels in over a year – slightly lower than November.

“Analyzing the Upsurge in January’s U.S. Existing Home Sales: A Deeper Dive into The Market Trends of 2022”

The outlook for the spring housing market seems more optimistic following increased activity in January. This involved an upturn both in previously owned home sales and in unsold inventory. Pre-owned houses, apartments, condominiums, and townhouses sold at an adapted annual rate of 4.00 million, which is a rise of 3.1% compared to December’s 3.88 million. Despite this, it was still 1.7% under the rate set in January 2023. Moreover, the reported yearly decrease in December sales figures was halved to -3.7% following a revision. There was also a 3.4% rise in single-family home sales from December to 3.6 million, but they were still lower by 1.4% on a year-over-year basis. In contrast, the apartment sales were stagnant, at an annual pace of 400,000, which was 4.8% less than the previous year. Even though the number of home sales was noticeably less than a few years ago, the increase in January is the commencement of a better supply-demand equilibrium, as homeowners are gradually listing more properties benefiting from reduced mortgage rates compared to the end of last year. In January, the listings grew by 2.0% to 1.01 million units. This could equate to a three-month supply at the present sales speed; however, this prediction is virtually the same as those in December and January 2023. Furthermore, properties usually stayed on the market for 36 days in January, a notable growth from 29 days in December and 33 days in January 2023.