Total state existing-home sales, including single-family and condo, rose 3.8 percent to a seasonally adjusted annual rate of 4.76 million units in the second quarter from 4.58 million units in the first quarter, but remain 2.9 percent below the 4.90 million-unit pace in the second quarter of 2008.

Thirty-nine states experienced sales increases from the first quarter, and nine states were higher than a year ago; the District of Columbia showed both quarterly and annual rises.

Lawrence Yun, NAR chief economist, said the sales gain appears to be sustainable.

“With low interest rates, lower home prices and a first-time buyer tax credit, we’ve been seeing healthy increases in home sales, which are a hopeful sign for the economy,– he said. “There have been sustained sales gains in Arizona, Nevada and Florida, as well as diverse areas such as Maryland, the District of Columbia and Nebraska. More recently, we’ve seen strong double-digit gains in Idaho, Utah, New Mexico, Washington, Hawaii, New York, New Jersey, Maine, Vermont, Wisconsin, Indiana, South Dakota and Montana.”

Yun explained housing’s impact on the overall economy. “Given the need for
related goods and services, each home sale pumps an additional $63,000 into the economy — that’s how the housing engine traditionally pulls us out of recession. In addition, sales are drawing down inventory and that will help stabilize home values, which in turn will lessen foreclosure pressure and boost credit availability for other sectors of the economy.”

Lower Prices

During the second quarter, 129 out of 155 metropolitan statistical areas reported lower median existing single-family home prices in comparison with the second quarter of 2008, while 26 areas had price gains.

Distressed sales — foreclosures and short sales — accounted for 36 percent of transactions in the second quarter, which continued to weigh down median home prices because they typically are sold at a 15 to 20 percent discount; first-time buyers accounted for one-third of transactions. The national median existing single-family price was $174,100, which is 15.6 percent below the second quarter of 2008. The median is where half sold for more and half sold for less.

Real Estate: Second Quarter Sales Rise, Prices Fall is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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Prices

Typical existing homes sold for $165,400 in February, but rose to $175,200 in March, a 4.2 percent increase. However, some of the sale price increase is a seasonal change and it should be said that March sale prices were down 12.4 percent from a year ago.

First-Time Buyers

An NAR practitioner survey in March showed first-time buyers accounted for 53 percent of transactions, based largely on contracts offered before the $8,000 first-time home buyer tax credit became available.

Total housing inventory at the end of March fell 1.6 percent to 3.74 million existing homes available for sale, which represents a 9.8-month supply at the current sales pace, compared with a 9.7-month supply in February.

Inventory

Single-family home sales slipped 2.8 percent to a seasonally adjusted annual rate of 4.10 million in March from a pace of 4.22 million in February, and are 5.7 percent below the 4.35 million-unit pace in March 2008. The median existing single-family home price was $174,900 in March, which is 11.5 percent lower than a year ago.

Condos

Existing condominium and co-op sales fell 4.1 percent to a seasonally adjusted annual rate of 470,000 units in March from 490,000 in February, and are 17.8 percent below the 572,000-unit pace a year ago. The median existing condo price4 was $177,600 in March, down 18.7 percent from March 2008.

Northeast

Regionally, existing-home sales in the Northeast fell 8.0 percent to an annual pace of 690,000 in March, and are 22.5 percent below a year ago. The median price in the Northeast was $231,700, down 18.4 percent from March 2008.

Midwest

Existing-home sales in the Midwest were unchanged in March at a pace of 1.04 million but are 11.1 percent lower than March 2008. The median price in the Midwest was $141,300, which is 6.1 percent below a year ago.

South

In the South, existing-home sales slipped 1.7 percent to an annual pace of 1.71 million in March and are 10.9 percent below a year ago. The median price in the South was $146,900, down 12.2 percent from March 2008.

West

Existing-home sales in the West declined 4.2 percent to an annual rate of 1.13 million in March but are 18.9 percent higher than a year earlier. The median price in the West was $252,400, which is 11.1 percent below March 2008.

Existing Home Prices Rose In March, Says NAR is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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I wondered about such issues when I got email the other day which really peeked my interest. The letter went something like this:

I wonder if the FSBO listings on the MLS are treated differently by brokers at large, even though the FSBO offers the same commission to the buyer’s broker? Would you think that brokers would boycott/avoid FSBO listings as a matter of solidarity? Is there any data on this topic that you might know of?

These are important questions and they implicitly raise several points. Let’s take ‘em one by one.

First, the term “FSBO” means “for sale by owner.” By definition, all homes listed on a broker-operated MLS are placed there by, er, brokers and not directly by owners. Thus such properties are not FSBOs, they are brokered listings complete with listing agreements and fees paid to brokers.

Listing agreements can vary enormously, the terms are not set in stone. The pantheon of listing options includes exclusive right to sell contracts, exclusive agency listings, listings with a flat fee and listings which reflect a menu of services. The terms and fees are negotiable.

Regardless of how a home is listed, if it’s listed it’s not a FSBO. With a listing, any listing, there’s a broker involved and there is an obligation to provide services which meet visible and established standards.

Second, our correspondent raises the matter of fees; to whit: All things being equal does the way a home is listed impact the interest of buyer brokers?

If the fee to a buyer broker is the same as the fee from any other property, and if we assume that brokers are lucid, then the buyer broker doesn’t care. But let’s say that broker Smith — if only for the sake of argument — will not show certain listings for philosophical reasons. In such a situation you can bet that broker Jones will be elated both to find a buyer and collect a fee. A seller, of course, needs just a single purchaser.

Buyer brokers can and do approach FSBOs — sellers without any broker representation or assistance — and make offers. The reason? Buyer brokers are still being paid, perhaps directly by the purchaser or indirectly by a credit to the buyer from the seller.

Third, the idea of brokers having “solidarity” is interesting. No doubt the brokerage community would like to see such cohesiveness.

Brokers compete with one another and often have very different ideas regarding policies and practices.

As evidence, consider that 1.3 million people now belong to the National Association of Realtors. Given this enormous membership, it’s not surprising that NAR has one of the largest political action committees in Washington. In the 2006 election cycle, the NAR PAC took in $9.4 million according to OpenSecrets.org. Of this amount, $3.6 million went to federal candidates.

No doubt these are big numbers, but think about it: This is an association with 1.3 million members — the PAC collected a hardly-mammoth $7.23 per member. Forty-eight percent of the NAR PAC money went to Democrats and 52 percent went to Republicans. Not an even split, but not evidence of political solidarity, either.

If the brokerage community has such solidarity, where’s the money? Of more than 1.3 million members, only 3,609 contributed at least $200.

When last I looked more than 2 million people had real estate licenses, which means that more than 700,000 licensees not only do not contribute to the NAR PAC, they don’t even belong to NAR.

The real question raised by our correspondent is whether a property entered into an MLS will get a fair shot at being sold regardless of how it’s listed or who does the listing. It’s a fair question.

Assuming the house represents a competitive property in the local marketplace, I think the logical answer goes like this: Brokers are entrepreneurs who earn their living representing others in the sale and purchase of real estate. Each buyer and seller, each sale and purchase, represents a business opportunity — and brokers who turn down such opportunities don’t eat.

————————
Published originally by Realty Times on January 23, 2007 and posted with permission.

Is Brokerage Solidarity A Real Estate Reality? is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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