The 19th Annual Telluride Blues & Brews Festival will play host to, among others, the following lineup of acts:
Phil Lesh & Friends
Gov’t Mule
The B-52s
Chris Robinson Brotherhood
MarchFourth Marching Band
Tab Benoit
Little Hurricane and The Lee Boys
According to festival promoters, more acts will be announced in May, and tickets are now on sale.
For more information on this or on Telluride area real estate, please feel free to contact us at 970.728.3111, info@telluriderealestatecorp.com, or http://www.telluriderealestatecorp.com/.
Wednesday, April 25, 2012
Monday, April 23, 2012
TREC Listing Nominated For HGTV's "Doory" Awards
TREC's listing at 160 Sunnyridge Place has been nominated for a 2012 Doory Award from HGTV, in the "Master Suites" category. Starting today, April 23rd, visit http://www.frontdoor.com/ to place your vote for your favorite!
For more information on this, or Telluride area real estate, please contact us at 970.728.3111, info@telluriderealestatecorp.com, or http://www.telluriderealestatecorp.com/.
For more information on this, or Telluride area real estate, please contact us at 970.728.3111, info@telluriderealestatecorp.com, or http://www.telluriderealestatecorp.com/.
Saturday, April 14, 2012
Telluride Real Estate Market Recap - First Quarter 2012
Greetings from Telluride ~
We have had an excellent winter in Telluride with over 17 feet of snow and an uptick in both retail sales and skier days. The Historic Town of Telluride reports that retail sales year end 2011 were the highest in 20 years. After rather lackluster real estate sales in the month of January, it appears as though transactions for February and March are tracking attained numbers for those same months of 2011.
$18.9M of sales closed in February (vs. $19.8M in February of 2011) and $38.1M of sales have closed in March (vs. $27.3M in March of 2011) - - a 40% increase in sales dollar transactions with a 26% increase in transaction volume. So, it certainly seems that momentum is gaining in our marketplace and has nearly made up for slow sales in the month of January.
On another very positive note, over $91M is currently under contract which bodes well for April and May which realized approximately $42.6M in total sales for those months in 2011. 44 properties sold or contracted YTD are over $1M with 25 between $2M - $12.5M, so it appears as the upper end of the market is experiencing a bit of a revival.
During the past 12 months, the Town of Telluride seemingly has been the market leader with 18 sales over $1M, 10 sales above $2M, 4 sales between $2.9M - $6M and those four sales averaged $934 PSF. The Telluride Mountain Village Market continues to present excellent buyer opportunities with 76 homes currently in market above $1M. The Mountain Village experienced 27 transactions over $1M during the same period, 13 of those transactions were over $2M and 5 between $5M - $12.5M. This compares to the prior 12 months where there were 39 sales above $1M, 17 above $2M and 6 between $5.1M and $9.5M.
Telluride has also been the recipient of some very good press as of late, being acknowledged by both National Geographic and Conde Nast Traveler as being one of the top ski resorts in the world (see links below).
http://www.cntraveler.com/ski-areas/2011/12/top-ski-resorts-2011#slide=4
http://adventure.nationalgeographic.com/adventure/trips/best-ski-towns-photos/?source=TravHPCarouselSkiTowns#/telluride-colorado-snowboard_47319_600x450.jpg
Below is a list of our outstanding summer festivals:
Mountain Film Festival - May 25-28, 2012
Telluride Bluegrass Festival - June 21-24, 2012
Telluride Wine Festival - June 27 - July 1, 2012
Telluride Plein Air Festival - June 29-July 5, 2012
Fireman's Fourth of July Celebration - July 4, 2012
Telluride Playwright's Festival - TBA, 2012
Telluride Yoga Festival - July 12-15, 2012
Telluride Americana Music Festival - July 18-21, 2012
Telluride Jazz Celebration - August 3-5, 2012
Telluride Festival of the Arts - August 10-12, 2012
Telluride Film Festival- August 31 - September 3, 2012
Telluride Blues & Brews Festival - September 14-16, 2012
We look forward to seeing you in the mountains this summer! As always, for more information on this or Telluride homes, condos or land opportunities, please contact us at 970.728.3111, info@telluriderealestatecorp.com, or visit http://www.telluriderealestatecorp.com/.
We have had an excellent winter in Telluride with over 17 feet of snow and an uptick in both retail sales and skier days. The Historic Town of Telluride reports that retail sales year end 2011 were the highest in 20 years. After rather lackluster real estate sales in the month of January, it appears as though transactions for February and March are tracking attained numbers for those same months of 2011.
$18.9M of sales closed in February (vs. $19.8M in February of 2011) and $38.1M of sales have closed in March (vs. $27.3M in March of 2011) - - a 40% increase in sales dollar transactions with a 26% increase in transaction volume. So, it certainly seems that momentum is gaining in our marketplace and has nearly made up for slow sales in the month of January.
On another very positive note, over $91M is currently under contract which bodes well for April and May which realized approximately $42.6M in total sales for those months in 2011. 44 properties sold or contracted YTD are over $1M with 25 between $2M - $12.5M, so it appears as the upper end of the market is experiencing a bit of a revival.
During the past 12 months, the Town of Telluride seemingly has been the market leader with 18 sales over $1M, 10 sales above $2M, 4 sales between $2.9M - $6M and those four sales averaged $934 PSF. The Telluride Mountain Village Market continues to present excellent buyer opportunities with 76 homes currently in market above $1M. The Mountain Village experienced 27 transactions over $1M during the same period, 13 of those transactions were over $2M and 5 between $5M - $12.5M. This compares to the prior 12 months where there were 39 sales above $1M, 17 above $2M and 6 between $5.1M and $9.5M.
Telluride has also been the recipient of some very good press as of late, being acknowledged by both National Geographic and Conde Nast Traveler as being one of the top ski resorts in the world (see links below).
http://www.cntraveler.com/ski-areas/2011/12/top-ski-resorts-2011#slide=4
http://adventure.nationalgeographic.com/adventure/trips/best-ski-towns-photos/?source=TravHPCarouselSkiTowns#/telluride-colorado-snowboard_47319_600x450.jpg
Below is a list of our outstanding summer festivals:
Mountain Film Festival - May 25-28, 2012
Telluride Bluegrass Festival - June 21-24, 2012
Telluride Wine Festival - June 27 - July 1, 2012
Telluride Plein Air Festival - June 29-July 5, 2012
Fireman's Fourth of July Celebration - July 4, 2012
Telluride Playwright's Festival - TBA, 2012
Telluride Yoga Festival - July 12-15, 2012
Telluride Americana Music Festival - July 18-21, 2012
Telluride Jazz Celebration - August 3-5, 2012
Telluride Festival of the Arts - August 10-12, 2012
Telluride Film Festival- August 31 - September 3, 2012
Telluride Blues & Brews Festival - September 14-16, 2012
We look forward to seeing you in the mountains this summer! As always, for more information on this or Telluride homes, condos or land opportunities, please contact us at 970.728.3111, info@telluriderealestatecorp.com, or visit http://www.telluriderealestatecorp.com/.
Sunday, April 8, 2012
TMRAO Announces Summer Flights Into Montrose/Telluride
From the Telluride Daily Planet, April 8, 2012:
By Noya Kahovi - Staff Reporter
The Telluride Montrose Regional Air Organization announced the schedule for summer air service from Dallas and Houston to Montrose this week.
United Airlines will fly between Houston and Montrose on Wednesdays and Saturdays, June 9 through Oct. 6. American Airlines will offer daily flights between Dallas and Montrose from June 9 to Sept. 4. These flights are aimed at drawing more visitors to the region.
TMRAO has been struggling with increasing fuel prices and subsequent growing demand for minimum revenue guarantees from airlines. Last year, the organization approached local governments and businesses for money in a last minute effort to cover a gap in funding to maintain winter service. But, after raising $400,000, U.S. Airways cancelled its Phoenix to Telluride service. The airline had limited inventory of airplanes that could land in the Telluride Regional Airport, the highest commercial airport in the country, and they moved those to the east coast; thus cancelling the successful service.
The cancellation was announced towards the end of September, too late for TMRAO to secure an alternative service in a tight market, and so the organization had leftovers from the money raised to cover the gap in winter funding.
“Last year, we thought we wouldn’t have enough funds to go after any summer service,” said Scott Stewart, TMRAO’s executive director. “Back when we were soliciting support, we were going for winter, the more lucrative season. We were trying to beef up winter service to what we had last winter. We didn’t think we’d be able to do summer at all.”
TMRAO used the leftover money to secure the summer flights. “We weren’t able to reallocate the funds for winter air service, so we went back to the governments in January and gave them some options as to what to do with them.”
An option to put the money into winter marketing was nixed because officials thought it was too late in the season for a campaign. Instead, Stewart said, they wanted to see continuation into summer service.
Even when taking into consideration the newly funded summer service, flights into the region are still showing a decrease.
“Despite our success in maintaining the Dallas and Houston flights, we have seen a decrease in United flights from Denver this summer,” Stewart said in a press release. “We are in a very challenging airline service environment where many small communities are losing air service. Fortunately, we have an organized support program in TMRAO and a supportive community that is proactively working to retain air service to the Montrose Airport. The economic impacts and opportunities commercial air service provides a community is critical to a healthy community.”
Telluride Regional Airport is in TMRAO’s sight as well, with two projects in development. The organization recently started looking into leasing an aircraft that would be dedicated to increasing frequency of Great Lakes flights to TEX. TMRAO is also still eyeing a low-cost air carrier to fly into Montrose and Telluride airports. A deal with such a carrier would significantly lower airfare, but negotiations are still in their initial stages for both projects.
“These things go according to the airlines’ schedule,” Stewart said.
For more information on this or Telluride area real estate, please contact us at 970.728.3111, info@telluriderealestatecorp.com or http://www.telluriderealestatecorp.com/.
By Noya Kahovi - Staff Reporter
The Telluride Montrose Regional Air Organization announced the schedule for summer air service from Dallas and Houston to Montrose this week.
United Airlines will fly between Houston and Montrose on Wednesdays and Saturdays, June 9 through Oct. 6. American Airlines will offer daily flights between Dallas and Montrose from June 9 to Sept. 4. These flights are aimed at drawing more visitors to the region.
TMRAO has been struggling with increasing fuel prices and subsequent growing demand for minimum revenue guarantees from airlines. Last year, the organization approached local governments and businesses for money in a last minute effort to cover a gap in funding to maintain winter service. But, after raising $400,000, U.S. Airways cancelled its Phoenix to Telluride service. The airline had limited inventory of airplanes that could land in the Telluride Regional Airport, the highest commercial airport in the country, and they moved those to the east coast; thus cancelling the successful service.
The cancellation was announced towards the end of September, too late for TMRAO to secure an alternative service in a tight market, and so the organization had leftovers from the money raised to cover the gap in winter funding.
“Last year, we thought we wouldn’t have enough funds to go after any summer service,” said Scott Stewart, TMRAO’s executive director. “Back when we were soliciting support, we were going for winter, the more lucrative season. We were trying to beef up winter service to what we had last winter. We didn’t think we’d be able to do summer at all.”
TMRAO used the leftover money to secure the summer flights. “We weren’t able to reallocate the funds for winter air service, so we went back to the governments in January and gave them some options as to what to do with them.”
An option to put the money into winter marketing was nixed because officials thought it was too late in the season for a campaign. Instead, Stewart said, they wanted to see continuation into summer service.
Even when taking into consideration the newly funded summer service, flights into the region are still showing a decrease.
“Despite our success in maintaining the Dallas and Houston flights, we have seen a decrease in United flights from Denver this summer,” Stewart said in a press release. “We are in a very challenging airline service environment where many small communities are losing air service. Fortunately, we have an organized support program in TMRAO and a supportive community that is proactively working to retain air service to the Montrose Airport. The economic impacts and opportunities commercial air service provides a community is critical to a healthy community.”
Telluride Regional Airport is in TMRAO’s sight as well, with two projects in development. The organization recently started looking into leasing an aircraft that would be dedicated to increasing frequency of Great Lakes flights to TEX. TMRAO is also still eyeing a low-cost air carrier to fly into Montrose and Telluride airports. A deal with such a carrier would significantly lower airfare, but negotiations are still in their initial stages for both projects.
“These things go according to the airlines’ schedule,” Stewart said.
For more information on this or Telluride area real estate, please contact us at 970.728.3111, info@telluriderealestatecorp.com or http://www.telluriderealestatecorp.com/.
Wednesday, April 4, 2012
Hamptons Real Estate Heating Up - Telluride's, Too!
From MSNBC.com, April 4, 2012:
When a five-bedroom waterfront estate in the Town of Southampton went on sale in 2008 for $5.8 million, the price must have seemed reasonable. After all, second-home prices on the Hamptons, the summer playground for wealthy New Yorkers, had been rising steadily for six straight years.
When a five-bedroom waterfront estate in the Town of Southampton went on sale in 2008 for $5.8 million, the price must have seemed reasonable. After all, second-home prices on the Hamptons, the summer playground for wealthy New Yorkers, had been rising steadily for six straight years.
But the house, ringed with mahogany decks and including a vintage pool house, finally sold a few months ago for only $2.75 million, less than half the original asking price.
"They weren't thrilled, let's just say that," realtor Marcia Altman of Brown, Harris Stevens said of the sellers. "They had turned down higher offers in the past, thinking they were too low, and they just got tired of waiting."
That may be a very good sign for the Hamptons luxury real estate market, which has been burdened for nearly four years with a glut of homes priced too high to sell.
All over the Hamptons, summer homes are starting to move again, according to more than two dozen people involved in the market, including real estate brokers, attorneys, analysts, county officials and local residents. And that is starting to show up in the figures, with pending contract sales rising for five straight months across Long Island's Suffolk County, which includes the Hamptons.
"The enthusiasm of the buyers is something we haven't seen in years," said Pamela Liebman, president of Corcoran Group Real Estate. "We still have a lot of unrealistic sellers, but they're beginning to come down and meet the market."
A number of elements are shoring up the market: Prices are being cut to levels the market can stand, the economy has stabilized, jobs growth has picked up and banks are loosening up lending. Also, foreign buyers - in particular British, Russian and South American financiers and industrialists - are adding to the buying interest coming from stars of the entertainment and sports worlds, the brokers said.
One of the jewels of the U.S. eastern seaboard, the group of agrarian towns and villages about 90 miles east of Manhattan known as the Hamptons has for many years been the summer retreat for Wall Street bankers, hedge fund managers and other affluent Americans drawn to sun-splashed dunes and the tranquility of its seaside communities.
While lower bonuses for bankers and the weak performance of much of the hedge fund industry in 2011 kept interest in property deals in check, the strength of the stock and corporate bond markets so far this year is improving sentiment. An unusually warm winter has also helped, brokers said.
Prices are still depressed, but that could change this summer.
"The prices remain soft for now, but if the pending sales contract trend continues, houses will move, the inventory will tighten up and we'll begin to see a shift from a buyer's market to a seller's market," said Tricia Chirco of Multiple Listings Service, Long Island, a clearinghouse of local real estate statistics. "We're stabilizing. And after the past three years, stable is good."
Last year, there were 1,605 residential sales on the East End of Long Island, up from 1,178 in 2008, said analyst Jonathan Miller of Miller Samuel Inc.
At the market peak in 2005, there were 2,528 sales. Boldfaced names are back in the buyer's market. Pop star Jennifer Lopez is in contract in Water Mill. Dallas Mavericks basketball star Jason Kidd just closed on a $5 million home there and NBC News anchor Matt Lauer recently purchased 40 acres adjoining his Water Mill property to build a horse farm.
Down on Southampton's storied oceanfront Meadow Lane, a six- bedroom mansion sold last month for $28.5 million, property records show. Nearby, another property is in contract for $19.95 million. A 14,000-square-foot, 11-bedroom manse in East Hampton designed by Carnegie Hill architect William B. Tuthill is in contract for $24.5 million.
$8.5 million discount At the heart of the problem in the years since the financial crisis in 2008 has been the reluctant seller.
Over time, the reluctant seller "will look to blame everything else but the economy," said Westhampton Beach broker Vicky Reynolds. "First they'll blame the broker, then they will say it's not being advertised in the right places and then they'll say the appraisal is not high enough."
But there are plenty of examples of sellers starting to come to terms with big price drops over the past few years. Take 24 Ocean Avenue, a spacious, five-bedroom Dutch Colonial on three acres in East Hampton Village, one of the most sought-after enclaves on the South Fork.
With four fireplaces, a gunite pool, sunken tennis court and a refurbished carriage house, the home premiered on the market on March 17, 2008, for $18.5 million, according to records.
By the following January, the price had dropped to $15,995,000 and within six months fell again to $13,500,000 in June 2009. In early 2010, the property was taken off the market and relisted in March for $12,500,000. A year later, the owners took it down to $9,999,000, where it still sits, unsold.
The Hamptons rental market, though, has remained relatively stable throughout most of the downturn, meeting the needs of those who weren't ready to buy in a troubled market. But that may taper off as sales grow, said Judi Desiderio, president of Town and Country Realty in East Hampton.
"It's pretty common that when sales are really high, rentals are a little soft and vice-versa - it's the same audience," she said. "We did more rentals after Bear and Lehman fell, but the total value of the sales was lower."
Renting a beachfront home in the Hamptons this summer can cost anything from $3,000 for a small cottage on the dunes in Westhampton Beach for the month of August to nearly $500,000 for the same period for a 12-bedroom oceanfront compound in Southampton. Some rarified properties known to only a few top brokers can go for as much as $1 million a month.
Foreign money The Village Latch, one of the Hamptons most postcard perfect inns, located in the heart of Southampton Village, is on sale for a cool $19 million. Of the recent prospective buyers, one stood out - an all-cash bid from a Chinese woman married to a British financial industry titan.
The couple met while stationed in London, worked together in Hong Kong and were recently re-assigned to Manhattan. The bid fell short, but the buyers were typical of an influx of foreign money into the Hamptons market, said broker Enzo Morabito, an executive vice president at Prudential Douglas Elliman.
"When we talk international buyers, in my experience, we are talking mostly the United Kingdom," said Desiderio. "And we're seeing a lot of people who still live in England but will summer out here. The UK contingent is mostly from the financial sector. But the majority, more than three-quarters of our business is still mostly New Yorkers."
Monday, April 2, 2012
Telluride's Press Accolades Continue to Stack Up
TELLURIDE GARNERS ACCOLADES IN THE PRESS IN 2011/2012:
Forbes:
"Top 5 Ski Resorts"
National Geographic:
"World’s 25 Best Ski Towns"
Conde Nast Reader Survey:
"Top 3 Ski Resorts In North America"
Yahoo Travel:
"Best Ski Resorts for Non-Skiers"
Ski Magazine:
"Top 10 Apres/Nightlife Ski Resorts"
Lonely Planet:
"Top 10 A-List Ski Resorts"
Sunset Magazine:
"Prettiest Ski Town in the West"
Isn't it time to discover what everyone is talking about? For more information on Telluride and Telluride area real estate, please contact your TREC broker today at 970-728-3111, http://www.telluriderealestatecorp.com/, or info@telluriderealestatecorp.com.
Thursday, March 29, 2012
Existing-Home Sales Rose in January, Marking Three Gains In The Past Four Months
From Realtor.com:
Washington, DC, February 22, 2012
Existing-home sales rose in January, marking three gains in the past four months, while inventories continued to improve, according to the National Association of Realtors®.
Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3 percent to a seasonally adjusted annual rate of 4.57 million in January from a downwardly revised 4.38 million-unit pace in December and are 0.7 percent above a spike to 4.54 million in January 2011.
Lawrence Yun, NAR chief economist, said strong gains in contract activity in recent months show buyers are responding to very favorable market conditions. “The uptrend in home sales is in line with all of the underlying fundamentals – pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents.”
Total housing inventory at the end of January fell 0.4 percent to 2.31 million existing homes available for sale, which represents a 6.1-month supply2 at the current sales pace, down from a 6.4-month supply in December.
“The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers,” Yun said. “Foreclosure sales are moving swiftly with ready home buyers and investors competing in nearly all markets. A government proposal to turn bank-owned properties into rentals on a large scale does not appear to be needed at this time.”
Total unsold listed inventory has trended down from a record 4.04 million in July 2007, and is 20.6 percent below a year ago.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said buying power is enticing more potential home buyers. “Word has been spreading about the record high housing affordability conditions and our members are reporting an increase in foot traffic compared with a year ago,” he said. “With other favorable market factors, these are hopeful indicators leading into the spring home-buying season. We’re cautiously optimistic that an uptrend will continue this year.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was a record low 3.92 percent in January, down from 3.96 percent in December; the rate was 4.76 percent in January 2011; recordkeeping began in 1971.
The national median existing-home price3 for all housing types was $154,700 in January, down 2.0 percent from January 2011. Distressed homes4 – foreclosures and short sales which sell at deep discounts – accounted for 35 percent of January sales (22 percent were foreclosures and 13 percent were short sales), up from 32 percent in December; they were 37 percent in January 2011.
“Home buyers over the past three years have had some of the lowest default rates in history,” Yun said. “Entering the market at a low point and buying at discounted prices have greatly helped in that success.”
All-cash sales were unchanged at 31 percent in January; they were 32 percent in January 2011. Investors account for the bulk of cash transactions.
Investors purchased 23 percent of homes in January, up from 21 percent in December; they were 23 percent in January 2011. First-time buyers rose to 33 percent of transactions in January from 31 percent in December; they were 29 percent in January 2011.
Forty-seven percent of NAR members report that contracts settled on time in January; 21 percent had delays and 33 percent experienced contract failures. Contract cancellations are unchanged from December but were only 9 percent in January 2011; they are caused largely by declined mortgage applications and failures in loan underwriting from appraisals coming in below the negotiated price.
Single-family home sales rose 3.8 percent to a seasonally adjusted annual rate of 4.05 million in January from 3.90 million in December, and are 2.3 percent above the 3.96 million-unit pace a year ago. The median existing single-family home price was $154,400 in January, down 2.6 percent from January 2011.
Existing condominium and co-op sales increased 8.3 percent to a seasonally adjusted annual rate of 520,000 in January from 480,000 in December but are 10.3 percent lower than the 580,000-unit level in January 2011. The median existing condo price was $156,600 in January, up 2.0 percent from a year ago.
Regionally, existing-home sales in the Northeast rose 3.4 percent to an annual pace of 600,000 in January and are 7.1 percent above a year ago. The median price in the Northeast was $225,700, which is 4.2 percent below January 2011.
Existing-home sales in the Midwest increased 1.0 percent in January to a level of 980,000 and are 3.2 percent higher than January 2011. The median price in the Midwest was $122,000, down 3.9 percent from a year ago.
In the South, existing-home sales rose 3.5 percent to an annual level of 1.76 million in January but are unchanged from a year ago. The median price in the South was $134,800, which is 0.3 percent below January 2011.
Existing-home sales in the West jumped 8.8 percent to an annual pace of 1.23 million in January but are 3.1 percent below a spike in January 2011. The median price in the West was $187,100, down 1.8 percent from a year ago.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
NOTE: For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.
1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from multiple listing services. Changes in sales trends outside of MLSs are not captured in the monthly series. A rebenchmarking of home sales is done periodically using other sources to assess the overall home sales trend, including sales not reported by MLSs.
Existing-home sales differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger sample – about 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
Also released today are annual data revisions. Each February, NAR Research incorporates a normal review of seasonal activity factors and fine-tunes historic data for the past three years based on the most recent findings. Revisions have been made to monthly seasonally adjusted annual sales rates for 2009 through 2011, as well as the inventory month's supply data; most revisions are minor with little or no impact on previous characterizations of the overall market. There are no revisions to monthly home prices or raw inventory data (beyond normal prior-month revisions).
2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).
3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
4Distressed sales (foreclosures and short sales), all-cash transactions, investors, first-time buyers and contract failures are from a monthly survey for the Realtors® Confidence Index, posted at Realtor.org.
Washington, DC, February 22, 2012
Existing-home sales rose in January, marking three gains in the past four months, while inventories continued to improve, according to the National Association of Realtors®.
Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3 percent to a seasonally adjusted annual rate of 4.57 million in January from a downwardly revised 4.38 million-unit pace in December and are 0.7 percent above a spike to 4.54 million in January 2011.
Lawrence Yun, NAR chief economist, said strong gains in contract activity in recent months show buyers are responding to very favorable market conditions. “The uptrend in home sales is in line with all of the underlying fundamentals – pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents.”
Total housing inventory at the end of January fell 0.4 percent to 2.31 million existing homes available for sale, which represents a 6.1-month supply2 at the current sales pace, down from a 6.4-month supply in December.
“The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers,” Yun said. “Foreclosure sales are moving swiftly with ready home buyers and investors competing in nearly all markets. A government proposal to turn bank-owned properties into rentals on a large scale does not appear to be needed at this time.”
Total unsold listed inventory has trended down from a record 4.04 million in July 2007, and is 20.6 percent below a year ago.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said buying power is enticing more potential home buyers. “Word has been spreading about the record high housing affordability conditions and our members are reporting an increase in foot traffic compared with a year ago,” he said. “With other favorable market factors, these are hopeful indicators leading into the spring home-buying season. We’re cautiously optimistic that an uptrend will continue this year.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was a record low 3.92 percent in January, down from 3.96 percent in December; the rate was 4.76 percent in January 2011; recordkeeping began in 1971.
The national median existing-home price3 for all housing types was $154,700 in January, down 2.0 percent from January 2011. Distressed homes4 – foreclosures and short sales which sell at deep discounts – accounted for 35 percent of January sales (22 percent were foreclosures and 13 percent were short sales), up from 32 percent in December; they were 37 percent in January 2011.
“Home buyers over the past three years have had some of the lowest default rates in history,” Yun said. “Entering the market at a low point and buying at discounted prices have greatly helped in that success.”
All-cash sales were unchanged at 31 percent in January; they were 32 percent in January 2011. Investors account for the bulk of cash transactions.
Investors purchased 23 percent of homes in January, up from 21 percent in December; they were 23 percent in January 2011. First-time buyers rose to 33 percent of transactions in January from 31 percent in December; they were 29 percent in January 2011.
Forty-seven percent of NAR members report that contracts settled on time in January; 21 percent had delays and 33 percent experienced contract failures. Contract cancellations are unchanged from December but were only 9 percent in January 2011; they are caused largely by declined mortgage applications and failures in loan underwriting from appraisals coming in below the negotiated price.
Single-family home sales rose 3.8 percent to a seasonally adjusted annual rate of 4.05 million in January from 3.90 million in December, and are 2.3 percent above the 3.96 million-unit pace a year ago. The median existing single-family home price was $154,400 in January, down 2.6 percent from January 2011.
Existing condominium and co-op sales increased 8.3 percent to a seasonally adjusted annual rate of 520,000 in January from 480,000 in December but are 10.3 percent lower than the 580,000-unit level in January 2011. The median existing condo price was $156,600 in January, up 2.0 percent from a year ago.
Regionally, existing-home sales in the Northeast rose 3.4 percent to an annual pace of 600,000 in January and are 7.1 percent above a year ago. The median price in the Northeast was $225,700, which is 4.2 percent below January 2011.
Existing-home sales in the Midwest increased 1.0 percent in January to a level of 980,000 and are 3.2 percent higher than January 2011. The median price in the Midwest was $122,000, down 3.9 percent from a year ago.
In the South, existing-home sales rose 3.5 percent to an annual level of 1.76 million in January but are unchanged from a year ago. The median price in the South was $134,800, which is 0.3 percent below January 2011.
Existing-home sales in the West jumped 8.8 percent to an annual pace of 1.23 million in January but are 3.1 percent below a spike in January 2011. The median price in the West was $187,100, down 1.8 percent from a year ago.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
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1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from multiple listing services. Changes in sales trends outside of MLSs are not captured in the monthly series. A rebenchmarking of home sales is done periodically using other sources to assess the overall home sales trend, including sales not reported by MLSs.
Existing-home sales differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger sample – about 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
Also released today are annual data revisions. Each February, NAR Research incorporates a normal review of seasonal activity factors and fine-tunes historic data for the past three years based on the most recent findings. Revisions have been made to monthly seasonally adjusted annual sales rates for 2009 through 2011, as well as the inventory month's supply data; most revisions are minor with little or no impact on previous characterizations of the overall market. There are no revisions to monthly home prices or raw inventory data (beyond normal prior-month revisions).
2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).
3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
4Distressed sales (foreclosures and short sales), all-cash transactions, investors, first-time buyers and contract failures are from a monthly survey for the Realtors® Confidence Index, posted at Realtor.org.
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