April Existing Home Sales beat estimates

From CNBC:

Existing home sales hit 5.45 million units in April, vs. expectations of 5.4 million

U.S. home resales rose more than expected in April, suggesting the economy continues to gather pace during the second quarter.

The National Association of Realtors said on Friday existing home sales increased 1.7 percent to an annual rate of 5.45 million units.

March’s sales pace was revised slightly higher to 5.36 million units from the previously reported 5.33 million units.

Economists polled by Reuters had forecast home resales rising to a 5.40 million-unit pace last month. Sales were up 6.0 percent from a year ago.

However, there were regional variations. Home sales surged in the Midwest by 12.1 percent last month and also rose in the Northeast while the South and West lost steam.

The number of unsold homes on the market rose 9.2 percent to 2.14 million in April from March, but was down 3.6 percent compared to a year ago.

“Housing shortage is still present,” said Lawrence Yun, NAR’s chief economist.At April’s sales pace, it would take 4.7 months to clear the stock of homes on the market, up from 4.4 months in March. A six-month supply is viewed as a healthy balance between supply and demand.

The share of first-time homebuyers rose to 32 percent from 30 percent last month and a year ago.Nationwide, the median home price stood at $232,500. That was an increase of 6.3 percent from one year ago.It was the 50th consecutive month house prices rose on a year-on-year basis, Yun added.

This entry was posted in Economics, Housing Recovery, New Jersey Real Estate. Bookmark the permalink.

18 Responses to April Existing Home Sales beat estimates

  1. grim says:

    From the NAR:


    Northeast slowed a bit in April, but still the strongest region on a year over year basis. Northeast up 17% YOY (unadjusted) and 17.5% YOY (adjusted). Northeast prices up 1.9% YOY (unadjusted) and 4.1% YOY (adjusted).

    Starting to look like a trend. Late to the party, we’ve gone from being the worst performing region, for many years, to the fastest improving.

  2. leftwing says:

    Interesting. May have to dig around and come up with multiple years monthly data, actual and seasonally adjusted, later today.

    Weird feelings on this market. All perception, and local and personal, but it almost felt like there was mini-panic to buy going into last fall that has come off a bit. On the other hand, the $750k knockdown is back, just saw another TBB on the way to pick my kid up last night.

  3. leftwing says:

    And, Boston must still be flying off the shelves.

    At a party over last weekend found out a corporate middle manager that I don’t believe has too much liquidity/savings is long three apartment fixer uppers there and did a one day round trip fairly hungover last Sunday to look at a fourth. HELOC with FIL and a buddy up there that manages them.

  4. Anon E. Moose says:


    Just so we’re clear, The White House just shot what they thought was a home intruder?
    4:51 PM – 20 May 2016


    Those leftists keep clinging to their guns.

  5. Juice Box says:

    Going to be fun watching as the left is now turning on itself, pretty soon there will be a purge.


  6. 30 year realtor says:

    Prices at sheriff sales appear to be rising too. Heavy competition and lots of new faces. House sold in Franklin Lakes at sheriff sale yesterday, 904 Olentangy Rd. Equalized value and Zillow values over $2,000,000. Listing expired in April $1,899,000. Photos and exterior inspection show house to be in good/excellent condition, built in 2003, 6320 GLA.

    Good sense dictates that any bidder would reserve something for repairs thinking former owner may have deferred some maintenance due to financial troubles. Let’s say $100,000 is a fair number for deferred maintenance and 12 years wear and tear on a house like this. Another reasonable assumption is the house is worth less than $1,899,000 or it would have sold. Comps and my interpretation of the market lead to me to conclude the likely sale price is between 1.65 and 1.7. The winning bid at sale was $1,215,000.

    If you subtract the repair reserve of $100,000 from the value that leaves an adjusted value of $1,550,000. If you divide the winning bid by the adjusted vale, winning bidder paid 78% of market value for the property. This was too risky for my taste. Remember this is an occupied property. If the former owner had to be evicted it will take 8 months or a healthy amount for Cash For Keys. Buyer (who is an investor) will also pay real estate commission and 2 realty transfer taxes.

  7. chi says:

    Sharoupim has customers send in an ounce or two of carefully packaged breast milk. (She recommends medical-grade storage containers.) She then uses a proprietary process — she’s also a pharmacist — to turn the milk into a solid, resin-based material that looks almost pearl-like in dainty pieces, ranging from a vintage-style pendant ($45) to simple sterling silver earrings ($100).

  8. leftwing says:

    Made potential sense up to the end. Thought it would be someone buying to own, with a contractor as a BIL.

    Is the RE commission you note on his buy, or on his sell (ie, is he paying one or two)?

    Narrow margin, especially for an illiquid asset that actually requires time and work. Better off picking up or down on the Dow and throwing some at SPY options.

  9. leftwing says:

    7/8. Last line in the article. My kind of mom.

    ““I loved nursing my daughter, but I don’t necessarily need a daily reminder,” says Jenna Scott, 32, an Upper East Side mom of two. “It just seems weird to me. I’d prefer to take that cash and invest in lingerie that’s not a nursing bra.”

  10. 30 year realtor says:

    Real estate commission only on the way out. Buyers at sheriff sale are responsible for realty transfer tax. This is traditionally paid by seller in typical transactions. This is why there are 2 transfer taxes.

    Likely to have to carry the property for up to 14 months.

  11. leftwing says:

    Good point, not like he’s hitting this season’s market with it.

    Add $75k of carry, realty at $25k, and a good deal sales commission of $75k. That’s $175k. Chuck in the $100k reno/reserve and his basis is now $1.5m.

    On your numbers is there a margin for $150-200k over 14 months with hopefully not a lot of work? Yeah, but with a lot of risk on a lot of capital.

    To your original point, it works if the market moves so he can sell it quickly at the old $1.9m list, pocketing $400k to evict a tenant and make some cosmetic cleanups.

  12. Amerigeddon says:

    30 Year (6)-

    Or the new owner can call my brother to do a 15-minute Oklahoma Eviction.

  13. Juice Box says:

    30 year – Although I have no connection anymore to real estate investments I still listen and apparently Chinese money via LLC is accelerating. Draw some concentric circles as money flows around here, places in Hoboken selling for 4-6 million now? Perhaps the buyer is speculating on a quick flip for a mil profit with some renovation to an out of mind and out of county buyer. Franklin Lakes by the lake has always been special. I would not be surprised to see it listed for allot more. I looked at a place there when I was was young and foolish 20 plus years ago, lakefront which was basically clearance at 300k at the time, with cracked foundation and the geese thru me off. No idea what the clearance sale price is these days but there is lift from close to NYC, a year from now could be the once in a decade frenzy for that hoighty town, and yeah the the winds of recession will cause it all to crumble.

  14. Amerigeddon says:

    juice (14)-

    The next leg of the Depression will turn us into nomadic, wandering herds of violent humanoids.

  15. Comrade Nom Deplume. Citizen, 2nd Class. says:

    [15] clot

    You’d be welcome but the rest of the zombies have to stay on their side of the river

  16. Essex says:

    NJ Real Estate in a nutshell.

    Money Talks….all else is B.S.

  17. Essex says:


    “Every day, I walk in shadows,
    I know not what it is
    I’m heading for…
    And as the evening light is dying,
    Your gentle heart lies near me, sighing;
    It’s still the same,
    You’ll never change.
    We can never understand,
    We can only be like water:
    Rolling on to find our way.
    Just get on with the game…
    It’s a game,
    What a game.”

Comments are closed.