Housing market index hits yearly high
The barometer of builder’s confidence in the housing market has reached a new high for the year. The survey of sentiment from the National Association of Home Builders and mortgage lender Wells Fargo was up 5 points to 59, the highest reading since September 2014. “Builders are reporting more serious and committed buyers at their job sites and this is reflected in recent government data showing that new-home sales and single-family construction are gaining momentum,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo.
The three-month moving averages for regional HMI scores, the South and Northeast each rose three points to 60 and 44, respectively. The West posted a two-point gain to 57 while the Midwest dropped by one point to 54.
Realtors report strong growth in commercial real estate
Commercial realtors are reporting growth in revenue and sales according to an annual report from the National Association of Realtors. The survey of NAR members who specialize in the commercial sector reveals that their median gross annual income was $126,900 in 2014, an increase from $96,200 in 2013. The median number of transactions completed last year also increased, to 11 from 8 in 2013; value of transactions increased to $2,916,700 from $2,554,700 in 2013. “After years of slow recovery, the commercial real estate market has shown meaningful growth and our members have seen significant improvements in their business activity,” said NAR President Chris Polychron.
California sales soften in May but momentum continues
Home sales in California were down in May, falling 1.1 per cent from revised April figures. However the data from the California Association of Realtors shows that sales were above 400,000 for the second consecutive month and were at the second highest level in two year. Sales were also 8.9 per cent higher than a year earlier. The median price of an existing, single-family detached California home edged up 0.8 per cent from $481,880 in April to $485,830 in May, the highest level since November 2007. May’s median price was 4.4 per cent higher than the revised $465,470 recorded in May 2014.
Home sells three times in 15 months
A home in Florida has been sold three times in the past 15 months and achieved a higher price each time. The five bedroom, six bathroom home within the Royal Palm Yacht & Country Club in Boca Raton was first sold by Royal Palm Properties in February 2014 for $3,615,000 but the owner then had a business opportunity in another state and the realtors sold it in January 2015 for $3,690,000. The new owner already has other properties and was happy to sell it again if Royal Palm found a buyer; it was sold at the start of June for $3,740,000!