Monday, July 30, 2012

June Phoenix Home Sale Press Release

Phoenix Area June Home Sales


The Phoenix region’s median sale price edged higher again last month, rising on a year-over-year basis for the seventh consecutive month to the highest level since late 2008. The number of homes sold fell from both May and a year earlier as foreclosure resales and sub-$150,000 transactions continued to dwindle, a real estate information service reported.

In June, buyers paid a median $152,000 for all new and resale houses and condos sold in the combined Maricopa-Pinal counties metro area. It was the highest for any month since the median was $154,000 in December 2008. Last month’s median rose 1.3 percent from May and rose 23.1 percent from June 2011, according to San Diego-based DataQuick, which tracks real estate trends nationally via public property records.

The median's 23.1 percent year-over-year increase in June followed annual gains of 25.0 percent in May, 18.3 percent in April, 13.8 percent in March, and 7.5 percent in each of the prior three months.
Last month’s median sale price stood 42.4 percent below the all-time peak of $264,100 in June 2006, but it was 28.4 percent higher than the median’s post-peak trough of $118,347 in August 2011.

To some extent, the large year-over-year gains in the median sale price in recent months reflect increased pressure on home prices. Ultra-low mortgage have helped trigger more demand at the same time the inventory of homes for sale has fallen sharply.

But there are other reasons the median sale price has posted double-digit annual gains of late. First, in recent months the region’s mid- to high-end markets have represented a substantially larger share of total sales. For example, last month 34.1 percent of all sales were above $200,000, compared with 25.6 percent a year ago. Second, there’s been a substantial drop in the portion of all resales that are foreclosed properties, which tend to carry significant discounts and be concentrated in lower-cost areas. If at some point lenders move more aggressively to clear their backlogs of distressed properties, then the inventory of homes on the market would rise, creating downward pressure on home prices.

Foreclosure resales, defined as homes that were foreclosed on in the prior 12 months, fell to 21.2 percent of the resale market last month – the lowest level for any month since January 2008, when they were 18.6 percent of the resale market. June’s foreclosure resale level fell from 24.3 percent the month before and 49.6 percent a year earlier. The peak level for foreclosure resales was 66.2 percent in March 2009.

Last month a total of 9,556 new and resale houses and condos closed escrow in the two-county Phoenix region, down 3.4 percent from the month before and down 8.3 percent from a year earlier. On average, June home sales have risen 1.4 percent from May since 1994, when DataQuick’s complete Phoenix region statistics begin.

Total home sales in June were 11.9 percent short of the average number sold that month, mainly because new-home sales remain far below average. Resales of houses and condos combined in June were 0.6 percent higher than the historical average for that month. New-home sales were 56.2 percent below average for a June. However, with demand outstripping supply in some segments of the Phoenix-area resale market, sales of newly built homes have been on an upswing lately. They have risen year-over-year for 12 consecutive months. June’s 1,046 new-home sales rose 31.2 percent from a year ago.

Sales continued to fall hard in the lower price ranges last month. The number of new and resale homes that sold in June for less than $100,000 dropped 40.6 percent from a year earlier, while sub-$150,000 sales fell 26.4 percent. Deals between $200,000 and $400,000 rose 22.5 percent year-over-year, while sales above $500,000 rose 17.0 percent. Sales over $800,000 rose 7.2 percent from a year earlier.

Other Phoenix region June highlights:

  • A key price gauge analysts watch, the median price paid per square foot for existing single-family detached houses, rose in June to $84 – the highest since it was the same level in November 2008. Last month’s figure rose 1.2 percent from the month before and increased 25.4 percent from a year earlier. The median paid per square foot has risen year-over-year for seven consecutive months. The June figure stood 50.9 percent below the $171 peak median paid per square foot in May and June of 2006.
  • At the county level in June, the median price paid per square foot for resale single-family detached houses in Maricopa County rose to $87, up 2.4 percent from the prior month and up 23.5 percent from a year earlier. It was the seventh consecutive month with a year-over-year gain. The Pinal County median paid per square foot was $60 last month, up 1.7 percent from the prior month and up 34.7 percent from a year earlier, marking the ninth consecutive month to see a year-over-year gain.
  • Short sales, where the sale price fell short of what was owed on the property, represented an estimated 13.7 percent of last month’s resale activity. That was up from an estimated 12.6 for May and it was down from 14.2 percent a year earlier.
  • Lenders foreclosed on 2,087 Phoenix-area houses and condo units last month, down 13.6 percent from the month before and down 56.5 percent from a year earlier. The number of homes lost to foreclosure between January and June this year totaled 14,591, down 54.1 percent from the same period last year.
  • Absentee buyers, who are mainly investors and vacation-home buyers, bought 39.3 percent of all Phoenix-area homes sold last month, down from 39.7 percent the month before and down from 44.3 percent a year earlier. The peak was 47.1 percent in March 2011. Last month, absentee buyers paid a median $121,000, down from $122,750 the month before and up 21.0 percent from $100,000 a year earlier.
  • About 43 percent of last month’s absentee buyers had mailing addresses outside of Arizona, according to public records. Topping the list of states where these out-of-state investors and second-home buyers came from were California (10 percent), Washington (4 percent), Texas (3 percent), Illinois (3 percent) and Colorado (2 percent). The remaining 35 percent of the Phoenix region’s absentee buyers in June were based in 42 other states.
  • Buyers paying cash bought 41.3 percent of all homes sold last month. That was down from 42.5 percent the prior month and up from 40.7 percent a year earlier. The record for cash buying was 48.0 percent in February 2011. Last month’s cash buyers paid a median $120,000, down from $123,500 the month before and up 34.8 percent from $89,000 a year earlier.
  • The market share for FHA home loans, a popular choice among first-time buyers, held at a more-than-four-year low. Last month 26.4 percent of all Phoenix-area home purchase loans were government-insured FHA mortgages, the same as in May and down from 34.7 percent a year earlier. Last month’s figure was the lowest since the FHA share of the purchase loan market was 25.3 percent in March 2008.

See the full area chart at DQNews.com

Media calls: Andrew LePage (916)456-7157 or alepage@dqnews.com

Copyright 2012 DataQuick. All rights reserved.

Wednesday, July 18, 2012

June Bay Area Home Sale Press Release

Bay Area Home Sales Up, Median Highest Since Summer 2008

July 18, 2012


La Jolla, CA.--The median price paid for a Bay Area home in June jumped to its highest level in almost four years, the result of an ongoing shift in the types of homes selling, slightly improved mortgage availability, and ultra-low interest rates on home loans. Sales increased on a year-over-year basis for the 12th month in a row, a real estate information service reported.

The median price paid for all new and resale houses and condos sold in the nine-county Bay Area last month was $417,000. That was up 4.3 percent from $400,000 in May, and up 10.4 percent from $377,750 in June 2011, according to San Diego-based DataQuick.

Last month’s median was the highest since it was $447,000 in August 2008.
    
The median’s low point for the current real estate cycle was $290,000 in March 2009, while the peak was $665,000 in June/July 2007. Around half of the median’s peak-to-trough drop was the result of a decline in home values, while the other half reflected a shift in the sales mix.

“Some of today’s stats are similar to what we saw in the thick of the housing downturn back in 2009, only in reverse: Instead of foreclosure resales soaring they’re waning, and instead of high-end sales slumping they’re posting some of the larger sales gains. This is one of the main reasons that various price measures are pointing higher – a so-called change in market mix. While last month’s jump in the median sale price might to some extent reflect prices edging a bit higher in certain markets, mostly it’s a reflection of the change in market mix. Fewer discounted distressed properties changing hands, more normal sales in the move-up range,” said John Walsh, DataQuick president.

A total of 8,577 new and resale homes were sold in the nine-county Bay Area last month. That was down 2.6 percent from 8,810 the month before, and up 7.2 percent from 7,998 for June 2011.
Although they’ve increased over the past year, Bay Area sales levels are still below their long-term norm. Since 1988, when DataQuick’s statistics start, June sales have varied from 7,118 in 1993 to 15,735 in 2004. Last month’s sales count was 14.8 percent below the 10,067 average for the month of June.

Last month distressed property sales – the combination of foreclosure resales and “short sales” – made up 36.1 percent of the resale market. That was down from 39.0 percent in May and down from 44.3 percent in June a year ago.

Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 18.1 percent of resales in June, the first time it’s been under 20 percent since it was 18.8 percent in January 2008. Last month’s 18.1 percent was down from a revised 21.4 percent in May, and down from 26.1 percent a year ago. Foreclosure resales peaked at 52.0 percent in February 2009. The monthly average for foreclosure resales over the past 17 years is about 10 percent.

Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 18.0 percent of Bay Area resales last month. That was up from an estimated 17.6 percent in May and about the same as 18.2 percent a year earlier.

Last month 40.9 percent of Bay Area sales were for $500,000 or more, up from 39.4 percent in May, and up from 38.0 percent in June 2011. The low for the current cycle was January 2009, when just 22.7 percent of sales crossed the $500,000 threshold. Over the past 10 years, a monthly average of 47.9 percent of homes sold for $500,000-plus.

Government-insured FHA home purchase loans, a popular choice among first-time buyers, accounted for 16.8 percent of all Bay Area home purchase mortgages in June. That was down from 17.2 percent in May and down from 20.6 percent a year earlier. Last month’s figure was the lowest since the FHA purchase loan share was 14.7 percent in August 2008.

One indicator of mortgage availability remains flat. In June, 14.0 percent of the Bay Area’s home purchase loans were adjustable-rate mortgages (ARMs). That was down from a revised 14.1 percent in May, and down from 16.8 percent in June last year. Since 2000, ARMs have accounted for 49.8 percent of all purchase loans. ARMs hit a low of 3.0 percent of loans in January 2009.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 38.1 percent of last month’s purchase lending, the highest since 38.6 percent in December 2007. It was up from a revised 37.2 percent in May, and up from 34.6 percent a year ago. In the current housing cycle, jumbo usage dropped as low as 17.1 percent in January 2009. Before the credit crunch struck in August 2007, jumbos accounted for nearly 60 percent of the Bay Area purchase loan market.

Last month absentee buyers – mostly investors – purchased 23.4 percent of all Bay Area homes, down from 24.4 percent in May, and up from 20.0 percent a year ago. Absentee buyers paid a median $270,000 in June, up from $262,000 in May and up 13.4 percent from $238,000 a year ago.

Buyers who appear to have paid all cash – meaning no corresponding purchase loan was found in the public record – accounted for 27.5 percent of sales in June. That was down from a revised 28.3 percent in May, and up from 26.0 percent a year ago. The monthly average going back to 1988 is 12.2 percent. Cash buyers paid a median $277,000 in June, down from $280,000 in May and up 11.2 percent from $249,000 a year earlier.

San Diego-based DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Because of late data availability, sales were estimated in Alameda, San Francisco and San Mateo counties.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying last month was $1,532, up from $1,491 in May, and up from $1,525 a year ago. Adjusted for inflation, last month’s payment was 45.2 percent below the typical payment in spring 1989, the peak of the prior real estate cycle. It was 59.5 percent below the current cycle's peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but below peak levels reached over the last three years. Financing with multiple mortgages is low, down payment sizes are stable, DataQuick reported.


To view the county chart, go to DQNews.com.

Source: DataQuick, www.DQNews.com

Media calls: Andrew LePage (916) 456-7157

Copyright 2012 DataQuick. All rights reserved.

Tuesday, July 17, 2012

June SoCal Home Sale Press Release

Southland Home Sales Up From Year Ago; Median Price Climbs to $300K

July 17, 2012
La Jolla, CA---The number of homes sold in Southern California rose above a year earlier for the sixth month in a row in June, the result of robust investor demand and significant sales gains for mid- to high-end homes. The continuing pattern of fewer foreclosures re-selling and more activity in pricier coastal counties helped the region’s median sale price climb to a two-year high, a real estate information service reported.

The median price paid for a home in the six-county Southland rose last month to $300,000, up 1.7 percent from $295,000 in May and up 5.3 percent from $285,000 in June 2011, according to San Diego-based DataQuick.

Last month’s median was the highest since the median was also $300,000 in June 2010, when the market got a final big boost from expiring homebuyer tax credits. The median has risen month-to-month for five consecutive months and has increased year-over-year for the past three. The June median’s 5.3 percent year-over-year gain followed increases of 5.4 percent and 3.6 percent in May and April, respectively. Before then, the median had fallen year-over-year for 13 straight months.

The June median was 40.6 percent lower than the Southland’s $505,000 peak median in mid 2007, and it was 21.5 percent higher than the region’s low point for the current real estate cycle – $247,000 in April 2009.

Higher demand and a smaller inventory of homes for sale have put pressure on prices in some areas, but two other trends are at work: First, there’s been a significant drop in the share of transactions that are foreclosed properties, which tend to sell at a discount and be concentrated in lower-cost areas. Second, a greater portion of sales are occurring in the higher-cost coastal markets. Last month, for example, sales in San Diego, Orange, Los Angeles and Ventura counties represented 71 percent of all Southland activity, up from 68 percent in June 2011.

“The June numbers look pretty good at first glance, but they're more mixed when you scratch beneath the surface. Yes, the median sale price rose again. But it’s clear this has a lot to do with changes in the types of homes selling, rather than across-the-board price appreciation. Fewer of the homes selling now are foreclosures, while more are nice houses in mid- to higher-end neighborhoods. June sales were stronger than a year earlier, but they were also around 20 percent below average for that month,” said John Walsh, DataQuick president.

“Super-low mortgage rates and lower home prices have attracted many buyers and helped compensate for the economy’s lackluster performance, and for not-so-great consumer confidence,” he said. “With inventory and foreclosure resales dwindling, more housing markets appear to be entering an early recovery phase. But in some cases we consider their status to be fairly precarious. What happens next will hinge largely on the strength of the economy and the decisions lenders make regarding scores of distressed properties that continue to hang over the market.”

In June, a total of 22,075 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was down 0.5 percent from 22,192 in May, and up 7.5 percent from 20,532 in June 2011.

Home sales typically rise between May and June, with that increase averaging 6.8 percent since 1988, when DataQuick’s statistics begin. However, the drop in sales between May and June is the result of May having 22 business days on which sales could close, compared with 21 days in June. The average number of homes to close escrow daily in June was 4.2 percent higher than the May average.
On a year-over-year basis, Southland home sales have increased for six consecutive months. Sales have also increased year-over-year in ten out of the last 11 months. Still, last month’s sales were 19.9 percent lower than the average sales tally of 27,544 for all the months of June since 1988. The low for June sales was 18,032 in June 2008, while the high was 40,156 in June 2005.

While overall Southland sales rose 7.5 percent last month from a year earlier, stronger sales gains were recorded in price segments above $250,000. The volume of transactions in lower-cost markets has been restrained by, among other things, declining inventories of homes for sale, especially foreclosures.

The number of Southern California homes sold in June for less than $200,000 fell 3.0 percent from a year earlier, while the number that sold for $200,000 to $400,000 increased 21.6 percent. Sales between $300,000 and $800,000 – a range that would include many move-up buyers – increased 12.8 percent year-over-year. Sales over $800,000 rose 7.1 percent from June 2011.

Last month 22.5 percent of all Southland sales were for $500,000 or more, up from 21.8 percent in May and 21.6 percent a year earlier. June’s share of sales above $500,000 was the highest since August 2008, when they made up 23.6 percent of the market. The low point for $500,000-plus sales was in January 2009, when only 13.8 percent of sales crossed that threshold. Over the past decade, a monthly average of about 28 percent of homes sold for $500,000 or more.

Distressed sales – the combination of foreclosure resales and short sales – made up 42.2 percent of last month’s resale market. That was the lowest level since the figure was 41.4 percent in February 2008.

Foreclosure resales – properties foreclosed on in the prior 12 months – accounted for 24.5 percent of the Southland resale market last month, down from a revised 26.9 percent the month before and 32.9 percent a year earlier. Last month’s figure was the lowest since foreclosure resales were 24.3 percent of the resale market in December 2007. In the current cycle, the figure hit a high of 56.7 percent in February 2009.

Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 17.7 percent of Southland resales last month. That was down slightly from an estimated 18.0 percent the month before and 17.9 percent a year earlier.

Credit remained relatively tight last month but the share of purchase loans in the “jumbo” category edged up again, reaching its highest point since late 2007.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 20.0 percent of last month’s purchase lending – the highest since December 2007, when it was 21.7 percent. June’s figure was up from 18.9 percent the prior month and 18.2 percent a year ago. In the months leading up to the credit crisis that hit in August 2007, jumbos made up about 40 percent of the market.

The use of adjustable-rate mortgages (ARMs) hardly budged last month. ARMs made up 6.7 percent of home purchase loans in June, compared with 6.6 percent in May and 8.8 percent a year earlier. Since 2000, a monthly average of about 34 percent of purchase loans were ARMs.

Investor and cash-only purchases continued to hover near record levels.

Absentee buyers – mostly investors and some second-home purchasers – bought 27.0 percent of the Southland homes sold last month. That was down from 27.5 percent the prior month and up from 24.1 percent a year earlier. The record was 29.9 percent in February this year, while the monthly average since 2000 is 17.3 percent. Last month’s absentee buyers paid a median $225,000, the same as the month before and up from $212,000 a year earlier. The median paid by absentee buyers last month was 25.0 percent lower than the $300,000 median paid for all homes sold.

Buyers paying with cash accounted for 31.6 percent of June home sales, down from 32.1 percent the month before and up from 28.6 percent a year earlier. Cash purchases peaked at 33.7 percent of all sales this February, and since 2000 the monthly average is 14.8 percent. Cash buyers paid a median $235,000 last month, up from $234,500 the prior month and $215,000 a year ago. The median price paid by cash buyers was about 22 percent lower than the median paid for all homes sold last month.

Government-insured FHA loans, a popular low-down-payment choice among first-time buyers, accounted for 27.8 percent of all purchase mortgages last month. June’s FHA level was down from 29.4 percent the month before and 31.1 percent a year earlier. Last month’s FHA share was the lowest since August 2008, when it was 26.8 percent.

DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The typical monthly mortgage payment Southland buyers committed themselves to paying last month was $1,102, compared with $1,100 the month before and $1,157 a year earlier. Adjusted for inflation, last month’s typical payment was 53.1 percent below the typical payment in the spring of 1989, the peak of the prior real estate cycle. It was 61.6 percent below the current cycle’s peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but is much lower than peak levels reached in recent years. Financing with multiple mortgages is very low, and down payment sizes are stable, DataQuick reported.
For the county-level sales chart, see DQNews.com.

Source: DQNews.com Media calls: Andrew LePage (916) 456-7157

Copyright 2012 DataQuick. All rights reserved.