Sales of U.S. Existing Homes Rise to One-Year High – Bloomberg 10-21-14

Salient to Investors:

  • Cash transactions accounted for 24% versus 33% a year ago. Investors, 63% of whom paid cash, were 14% of the market last month versus 19% in September 2013. Foreclosures and short sales were 10% of the total. First-time buyers accounted for 29% versus the historical average of 40%.
  • The average 30-yr, fixed-rate mortgage is at the lowest since June 2013.
  • Brittany Baumann at Credit Agricole sees upward trajectory over the next few months, but said it will take further strengthening in the job market, low mortgage rates, and a special importance on easing of mortgage lending standards.
  • Lawrence Yun at NAR said the market a year from now, 2 years from now, will be better, and the share of first-time buyers will steadily increase with an improving economy and job creation.
  • Robert Stein at First Trust Portfolios said the traditional buyer will continue to grow in strength.
  • Chris Rupkey at Bank of Tokyo-Mitsubishi UJF said unemployment is plummeting in many formerly problem states as the recovery spreads – California and Nevada, most hurt by the meltdown in residential real estate, have had the biggest declines in joblessness over the past year.

Read the full article at http://www.bloomberg.com/news/2014-10-21/sales-of-existing-u-s-homes-rose-in-september-to-one-year-high.html

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