Tuesday, March 1, 2016

Real Estate News

This is last weeks weekly MBA Mortgage Index. The new report will be released tomorrow. 
  • The weekly MBA Mortgage Index showed a seasonally adjusted decrease of 4.3% in mortgage applications.
  • Sales of new single-family houses in January ran at a seasonally adjusted annual rate of 494,000 (Briefing.com consensus 523,000)
    • That was 9.2% below the sales rate in December and new home sales in January were down 5.2% year-over-year.
    • Weather can't really be blamed as the culprit for the drop in sales for a few reasons. First, the Northeast, which was struck by a blizzard late in the month, saw sales increase 3.4%. Secondly, the West, which did not have to contend with blizzard conditions, saw a huge 32.1% month-over-month decline in new home sales. Separately, sales were down 5.9% in the Midwest and up 1.8% in the South.
    • Pricing can't be thought of as the culprit either. The median sales price of $278,800 was down 5.8% from the prior month and down 4.5% year-over-year. 
    • This January downturn, then, has the appearance at first blush of simply being the result of a drop off in demand. As a reminder, new home sales are counted when the contract is signed versus existing home sales which are counted when the sale is closed.
      At the sales pace seen in January, the inventory of new homes for sale stretched to a 5.8-months supply from 5.1 months in December. That is the highest inventory level since September 2015.

No comments:

Post a Comment