The Home Buyer's Korner

Information presented should be used for educational purposes only.

June 29th, 2015

Guy looking up in color

Pending Home Sales for May 2015

Homes Sales

Pending Home Sales is a forward-looking indicator of home sales and rose to its highest level in more than nine years in May and may signal the housing market is gaining traction after a less than stellar start this year.

The National Association of Realtors reported this week its index of Pending Home Sales increased 0.9 percent to a seasonally-adjusted rate of 112.6, while housing economist had expected an increase of 1.2 percent for May. The lesser increase however, isn’t necessarily bad news since May was the highest level since April 2006. The index tracks contract signings, which usually close within two months.

The April index was revised down to 111.6 from 112.4.

Daniel Silver of J.P. Morgan mentioned the index was “a little softer than expectations, but the trend in the series still looks favorable, with pending sales up for five straight months through May. Last week, the National Association of Realtors (NAR) reported a strong uptick in existing home sales following a dip in April. Sales of Existing Home Sales increased 5.1 percent in May to a seasonally adjusted rate of 5.35 million homes, the highest level since November 2009. It’s worth noting that during November of 2009 was a time when government was offering significant tax credits of $8000 to first time home buyers who purchased a home in the wake of the real estate bust of 2007. Furthermore, this year’s sales have exceeded last year’s for eight straight months and currently stands at 9.2 percent over last years.

Another good sign the housing market many have turned a corner is that first-time home buyers started making their way back to the real-estate market last month. Last month we saw a  jump in homes sales was due largely in part by first-time home buyers and an expanded supply of houses, according to the Existing Home Sales report. Thirty-two percent of home buyers in May came from first time and up five percentage points from a year ago. That’s a welcomed sign for the housing market, as we historically have seen first time home buyers making up about 40 to 45 percent of the total market.

Existing home sales, which account for about 90 percent of the market, are still well below their pre-recession peak, however, when they routinely exceeded 6 million and even topped 7 million for part of 2005.

Prices have also been rising lately although the Federal Finance Housing Agency (FHFA), the agency that oversees Fannie Mae and Freddie Mac, reported that home prices related to mortgages owned by Fannie Mae and Freddie Mac held steady with a growth rate of 5.30 percent year-over-year reported in May and  was the same year-over-year home price growth rate that the agency posted in April. The median price of an existing home last month was $228,700, or 7.9 percent higher than in May 2014.

Housing affordability remains a serious concern with home-price growth increasing around four times the pace of wages.

Pending home sales rose 6.3 percent in the Northeast and 2.2 percent in the West, but fell 0.6 percent in the Midwest and 0.8 percent in the South.

HOME OWNERSHIP TOOLS

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen, you will have the option

to “Create A Printable PDF of the Presentation”.

FNMA HomeStyle FNMA My Community Mortgage FHA One-Time Close Construction Portfolio or VA home loan Homes for Sale REO Short Sales FNMA HomePath Properties HUD Homes USDA Homes Condominiums Co-Ops Townhomes Manufactured Homes Modular Homes Mobile Homes Log Homes Second Homes Investment Property 2-4 Family Custom Home Builders Custom Built Homes General Contractors Home Improvement Experts Kitchen & Bathroom Renovations Real Estate Brokers & Agents Mortgage Lenders Federal Credit Unions Community Bankers Real Estate Listings Jumbo Investor Hard Money HARP HECM Equity Zero 3% 3.5% Portfolio Non-Warrantable Down Payment Assistance Makiki Ala Moana Makiki Kai Kakaako Waterfront Kaka ako Makiki Kai Punch Bowl Chinatown Pacific Heights Nuuanu Liliha Kapalama Nuuanu Kapalama Kalihi Sand Island Kapalama Kalihi Kalihi Kai Mapunapula Fort Safter Salt Lake Aliamanu Red Hill Moanalua Akahi Kalih Estates Aliamanu Estates Aliamanu Military Reserve Carlos Long-Waiomao Estates Chinatown Estates Downtown-HPU East Estates Downtown- HPU West Estates Hickam Estates Kalakaua East Estates Kalakaua West Estates Ewa Beach Ewa Gentry Haleakea Estates Hu’elani Estates Kapilani Estates Kealohi Kai Estates Kula Lei Estates Latitudes-Sandalwood Estates Ocean Pointe Estates Soda Creek Estates Ewa Ewa Gentry Ewa Villages Fernandez Village Honouliuli Hickam Village Iroquois Point Kapolei Lower Village Pu’uloa Renton Village Sisal Tenney Village Varona Village Watertown West Loch Estates Aiea Heights Halawa Heights Koauka Loop Pearl Ridge Waimalu Laie Haleiwa Hauula Kaaawa Kahana Kapaeloa Kawailoa Beach Kawela Bay Kahuku Kamooloa Kapaeloa Marconi Mokuleia Mokuleia Beach Colony Punaluu Pupukea Ranch Camp Sunset Beach Thompson Corner Waialua Waialae Akupu Waianae Honokai Hale Kamooloa Maili Makaha Makaha Valley Makakilo City Waianae Waianae Nanakuli Nenelea Palehua Ranch Camp Waianae Pearl City Heights-Crest-Crown Estates Hoomaemae Street Estates Pearl City Ewa-Schofield Junction Kalauao Pacific Palisades Waiau Keolu Hills Lanikai Maunawili Pohakupu Waimanalo Waimanalo Beach Aikahi-Kaimalino Coconut Grove-Kalama Country Club Knolls Enchanted Lake Enchanted Lakes Hillcrest Kailua- Kawainui Vista Kalaheo Kalaheo Hillside Kukanono Kuulei Lanikai Olomana Oneawa Canal Neighbors Pohakupu Makiki Ala Moana Makiki Kai Kakaako Waterfront Kaka ako Makiki Kai Punch Bowl Chinatown Pacific Heights Nuuanu Liliha Kapalama Nuuanu Kapalama Kalihi Sand Island Kapalama Kalihi Kalihi Kai Mapunapula Fort Safter Salt Lake Aliamanu Red Hill Moanalua Akahi  Kalih Estates Aliamanu Estates  Aliamanu Military Reserve  Carlos Long-Waiomao Estates Chinatown Estates Downtown-HPU East Estates  Downtown- HPU West Estates Hickam Estates Kalakaua East Estates Kalakaua West Estates Kaneohe Haiku-Crown Terrace Estates Hale Kou Crown Estates Kaneohe Estates Keapuka Estates Koolau Estates Mikiola Estates Yacht Club Terrace Estates Ahuimanu Heeia Kahaluu KeaaluKokokahi Mahinui Malae Puohala Waiahole Waikane Mililani Island Classics Estates Kuahelani Estates Mauka Pacific Traditions Estates Mililani Mauka Estates Mililani Mauka Lehiwa Estates Mililani Town Estates Near Ike Estates Noholoa Estates Galbraith Karston Kunia Camp Wahiawa Waipi’o Acres Wheeler Field Whitmore Village Pupukahi-Pupupuhi Estates Royal Kunia Estates Umeke, Pailolo Classics Estates Waikele Estates Waipahu Estates Waipio Gentry Estates Crestview Village Park Waipi’o Waikiki Kalama Valley Queen’s Gate Portlock Koko Isle Kealaula Kai Hahaione Hawaii Kai Kuliouou Niu Valley Hawaii Loa Ridge Aina Haina Wailupe Kahala Wai-Kahala Black Point Kaimuki Kapahulu Maunalani Heights Palolo Kaimuki St Louis Heights Moiliili Manoa Mccully Ala Moana Makiki Aina Haina Estates Ainakoa Estates Ala Moana-Kakaʻako SD-2 Estates Colony Marina Estates Coral Strand Estates Diamond Head Estates East McCully Moiliili Estates Hahaione Estates Hahaione Valley Estates Harbor View Plaza Estates Kaalakei Valley Estates Kahala Estates Kahala Kua Estate Kai Koko Estates Kaimuki Estates Kaimuki-Market City Estates Kaiser Estates Portlock Estates Kalama Valley Estates Kalihi Street Estates Kalihi Uka Estates Kalihi Valley Estates Kamehameha IV Estates Kanaha Stream Estates Waikiki Kaimuki, Kapahulu, Manoa Makiki Waialae-Kahala Kapahulu Estates Kapahulu and Campbell Avenue Estates Kinau Estates Koko Head Terrace Estates Ko’olani Estates Kuakini Estates Kuapa Isle Estates Kuhio Park Terrace Estates Kuliouou Estates Liliha Estates Lower Pali- Nu’uanu Estates Lower Waialae in Kaimuki Estates Lunalilo Park Estates Manoa Estates Manoa Makai Estates Mariner’s Cove Estates Mauna Luan Estates Mawaena Kai Estates McCully Estates Moiliili/Kaimuki Estates Moilili Estates Niu Valley Estates North McCully Moiliili Estates North Waikiki Estates Palolo Estates Pauoa Valley Estates Pepeekeo Estates Piolani Estates Plaza Hawaii Kai Estates Poola Street Area Estates Pualei Circle Estates Puunui Estates Puu Panini Estates Royal Iolani Estates Salt Lake Estates Salt Lake Golf Course Estates South McCully Moiliili Estates Spinnaker Isle Estates Star Road Pauoa Estates St. Louis Heights Estates The Commodore Estates Upper Kaimuki Estates Upper Waena Estates Waialae Iki-Makai Estates Waialae Nui Estates Waialae to Kaimuki Estates Waikiki Estates Wilhelmina-Maunalani Heights Estates

Join us at Real Estate Social

Comments are closed.