Data based on May’s existing home sales release, covering April figures. For more information, check out the “supplemental market data” file on the EHS data page.
- Sales growth was largest among homes in above-median-priced categories in April, and more than 10% of homes sold had a sales price over $500,000.
- In spite of the price variation by region, when summed to the regional level the median sales price for all regions of the US except the West falls into the $100,000 to $250,000 price range. The West is slightly outside of this range and the Northeast is near the edge.
- The median price is the point at which the middle-priced home sold. By definition, half of homes in an area sold at a higher price and half of homes sold at a lower price than the median.
- Sales were up from a year ago in the median-price category and all higher price tiers in all regions. Sales were only lower in the lowest price category in the West, South, and Northeast—most likely a result of limited inventory in this price range.
- Notably, in most regions, sales growth was highest in the higher price tiers. In the Northeast, sales growth was strongest in the $1 million plus category while in the Midwest and West sales growth was strongest in the $750,000 to $1 million price tier. Sales in the South showed the most strength in the $500,000 to $750,000 category and were more than 30 percent higher than a year ago in all above-median price tiers which partly explains the strong price growth in the median in that region.
- Sales in the lowest price tier began to show less growth and even decline in some areas in 2012. Unsurprisingly, this was the same period when we saw the biggest tapering off in reports of distressed sales in our survey of practitioners.
- Strength in the upper price tiers has brought the share of homes-priced greater than $500,000 among those sold to over 10 percent in April. As inventory is more plentiful in these price tiers, construction seems limited, and distressed sales are anticipated to continue to drop, expect the share of higher priced homes among those sold to remain above the 10 percent level for the duration of the summer selling season, and possibly into the off-season.
- The net worth of households and non-profits has recovered completely from the recession and reached a new peak of over $70 trillion in the first quarter of 2013 according to data from the Federal Reserve Flow of Funds.
- During the recession, the net worth of households and non-profits—the sum total of tangible assets such as real estate and financial assets such as savings and equities minus liabilities such as mortgages and other debt—took a beating, declining by more than $15 trillion from the first quarter of 2007 to the first quarter of 2009.
- While a reduction of debt has led to some increase in net worth, the recovery of home and stock prices has had a much bigger effect. Household real estate accounts for $18 of the $83 trillion in household assets and owner’s equity in household real estate is $9 trillion of the $70 trillion in net worth.
- This data marks the 14th consecutive quarter of year over year growth in net worth and the 3rd consecutive quarter of nearly 10 percent gain from a year earlier.
- Households and non-profits are grouped together because current data collection by the Fed is not at a level of detail that would make separation of the two groups possible.
In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses the latest monthly employment report.
In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses Core Logic price data.
Did You Know: Inventories are declining at a slower pace, but unless inventories grow, demand for housing will keep the pressure on prices and the balance of the market in favor of sellers.
- Comparing the total number of homes available for sale in April 2013 to one year ago, we see that inventories in April are nearly 14 percent lower than they were one year ago. In the chart, we see that the decline has abated but not stopped; a 14 percent decline is an improvement over 20+ percent, but inventories remain scarce. Continue reading »
