New Home Sales Race to Two-Year High in May

WASHINGTON | Mon Jun 25, 2012 10:04am EDT (Reuters) - New single-family home sales surged in May to a one-year high and prices rose from a year ago amid tightening supply, further signs the housing market was gaining some momentum. The Commerce Department said on Monday sales jumped 7.6 percent to a seasonally adjusted 369,000-unit annual rate, the highest since April 2010. Economists polled by Reuters had forecast sales at a 346,000-unit rate last month from April's 343,000-unit pace. March's sales pace was revised up to 347,000 units from the previously reported 332,000 units. Compared to May last year, new home sales were up 19.8 percent. The housing market is showing signs of life even as the broader economy is weakening, and residential construction is expected to contribute to gross domestic product this year for the first time since 2005. Data last week showed a jump in home building intentions in May and a fourth straight month of gains in the median price of a previously owned home. The improving housing market picture was further enhanced by a 5.6 percent rise in the median price of a new home to $234,500 from May last year. While the inventory of new homes on the market edged up 0.7 percent to 145,000 units last month, it remained near record lows. At May's sales pace it would take 4.7 months to clear the houses from the market, the lowest since October 2005, down from 5.0 months in April. New home sales last month were buoyed by a 36.7 percent jump in the Northeast and a 12.7 percent rise in the South. Sales in the West fell 3.5 percent and were down 10.6 percent in the Midwest.

Mortgage Rates Drop Again to Record Lows

WASHINGTON (AP) – Average rates on 30-year and 15-year fixed mortgages this week fell to record lows for the sixth straight week. Cheap mortgages continue to help boost prospects for home sales this year. Mortgage buyer Freddie Mac says the average rate on the 30-year loan dropped to 3.67%. That's down sharply from 3.75% last week and the lowest since long-term mortgages began in the 1950s. The 15-year mortgage, a popular refinancing option, declined to 2.94%. That's down from 2.97% last week. Rates on the 30-year loan have been below 4% since early December. The low rates are a key reason the housing industry is showing modest signs of a recovery this year. A drop in rates could also provide some help to the economy if more people refinance. When people refinance at lower rates, they pay less interest on their loans and have more money to spend. A Federal Reserve survey issued Wednesday showed the economy growing moderately in most regions of the country this spring as companies continued hiring. Manufacturing and home sales improved in most of the Fed's 12 regional districts, as did residential and commercial construction. In April, sales of both previously occupied homes and new homes rose near two-year highs. Builders are gaining more confidence in the market, breaking ground on more homes and requesting more permits to build single-family homes later this year. Mortgage applications rose by 1.3% during the week ended June 1, the Mortgage Bankers Association reported Wednesday, mainly because more people applied to refinance their homes.

Home Sales in Maine Rise 8.7% From a Year Ago.

By Jessica Hall / Portland Press Herald, Maine... Home sales in Maine rose 8.7 percent in April, the ninth consecutive month of higher sales volume, according to the Maine Association of Realtors. A total of 824 homes were sold during April, up from 758 homes in April 2011. Last month’s median sale price for those homes was up 4.48 percent over April 2011, at $167,950, according to Maine Real Estate Information System Inc. "Nine consecutive months of higher (year-over-year) sales volume, plus two consecutive months of increased median sale prices, gives both buyers and sellers solid reasons to enter the market," said Tina Lucas, president of the Maine Association of Realtors. Lucas noted that much of the recent activity is from first-time home buyers. New buyers "realize now is the right time to take advantage of the historic low interest rates and attractive pricing," she said. The increases in Maine trailed the gains nationally. Sales rose 9.9 percent nationwide compared with a year earlier. The median sale price rose 10.4 percent, to $178,000, in April, according to the National Association of Realtors. In the Northeast, sales increased 19.2 percent and the median sale price rose 8.8 percent, to $256,600. "I’d expect to see national and regional housing numbers exceed Maine for some time to come because the nation and the Northeast declined further in the recession and there’s more recovery to be done," said Charles Colgan, professor of public policy and management at the University of Southern Maine’s Muskie School of Public Service. "Maine also has slower population growth." Home sales are driven by banks’ willingness to lend money and consumer confidence, Colgan said. "People shy away from big purchases when confidence levels are low. When confidence starts to resume, you start to see big purchases like homes and cars," Colgan said.

Jim Fullilove, Waterfront "Buyers Broker", Joins Our Team.

Jim Fullilove lived the dream that many people have of leaving the hustle-bustle of the big city behind and moving to Maine. Many years ago, he traded the congestion of the New York City area and the long commute by train to Manhattan for a 100 acre lakeside “farm” complete with apple orchard, trout stream and horse barn. Sounds great, but the move turned up a few funny missteps and some hard lessons along the way—all good things to know if you’re planning a similar move. Just ask him. Jim’s background is an interesting patchwork of magazine publishing, construction and all things related to boats. In his younger days, a stint as an equipment operator and house carpenter coupled with a penchant for journalism landed him a job as an editor with a construction magazine. A passion for sailing and the desire for a more laid-back lifestyle brought him to Maine and a job with National Fisherman and WorkBoat magazines. For the past decade or so, in his spare time he’s been editor of Marine Electronics Journal. All of this—an insider’s knowledge of home construction, a love of boats, fishing and the sea, and good communication skills—prepared him well for selling waterfront real estate in Maine, which he’s done for the past seven years. Jim works only with buyers. He prefers to deliver concierge service to clients who dream of finding the perfect waterfront property, rather than trying to serve the sellers of properties as well. Jim and his wife, Jeanne, live on a small horse farm a couple miles from Camden and Penobscot Bay. He’s still into boats and boating, only instead of the sloop he used to cruise aboard in Long Island Sound and beyond, he now messes around in sailing dinks and kayaks on the river behind his house—and takes friends up on their offers to crew aboard their larger boats every chance he gets. If you are looking for waterfront property in Maine – and would like a “Buyer’s Broker” to help you find just the right property and to represent you exclusively, contact Jim at Waterfront Properties of Maine or directly on his cell phone at (207) 542-9511 or by email at jim@homesonthewaterinmaine.com or visit his website at: http://www.homesonthewaterinmaine.com/

Maine Home Sales Up 13% in March

SOUTH PORTLAND (April 19, 2012) — Sales of single-family existing homes in Maine increased by double-digits again in March. According to the Maine Real Estate Information System, Inc., statewide home sales increased 13.16 percent, comparing March 2012 to March 2011. This is the ninth consecutive month of positive unit sales increases. The median sales price (MSP) increased 0.19 percent to $160,000 in that same time period; the first increase since July 2011. The MSP indicates that half of the homes were sold for more and half sold for less. The National Association of Realtors reports that nationwide, single-family existing home sales rose 5.9 percent and the national MSP increased 1.9 percent to $163,600, comparing March 2012 to March 2011. Regionally, sales in the Northeast were up 5.5 percent while prices slipped 1.9 percent to $228,300 in that same time period. Tina Lucas, who serves as 2012 President of the Maine Association of Realtors, explains, “Considering the consistent increase in transaction volume over the past nine months, it seems the ‘wait and see’ attitude is waning. Many buyers recognize the real estate climate change and are now taking advantage of current market opportunities. Combined with the March increase in median sale prices -- the first since mid-2011 -- all signs are currently quite positive. A steady improvement in the market dynamic will lead to a more robust housing market, which will in turn lead to higher prices and lower inventory -- both excellent reasons for potential buyers to act sooner than later.” Lucas, adds, “Although the future of the market is challenging, if not impossible to predict, properties will sell if presented to the market in the best condition possible and are properly priced with the emphasis on accurate pricing. Choosing a Realtor with a keen knowledge of the local market area is instrumental in creating a successful transaction.”

Good News in Home Slaes

National Association of Realtors released its pending home sales index figure last week, and for the second month in a row, the index is up. What's more, the index has broken 100. That's significant because the only other time the index has hit 100 in recent years is when the home buyer tax credit was available. "It is the natural, organic power of great affordability conditions and job creation that is bringing the index level up," says NAR Chief Economist Lawrence Yun. "This is a very encouraging sign."

Maine Housing Market Shows Positive Signs

SOUTH PORTLAND, Maine Maine's housing market continues to show signs of improvement with a nearly 7 percent increase in sales of single-family homes last month when compared to the year-ago period. The Maine Association of Realtors reported Tuesday that there were 945 home sold last month, compared to 885 in October 2010. The group also noted that median prices declined by nearly 1 percent to $165,000. Association President Mike LePage says the majority of Maine's counties showed significant gains. Somerset County had a more than 38 percent gain in sales in the rolling quarter compared to the same period last year, while the median sales price rose almost 40 percent