Welcome to the August 2015 Newsletter
Pending Home Sales Inch Forward in July
WASHINGTON
(August 27, 2015) — Pending home sales were mostly unchanged in July,
but rose modestly for the sixth time in seven months, according to the National Association of Realtors®.Watch Video
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, marginally increased 0.5 percent to 110.9 in July from an upwardly revised 110.4 in June and is now 7.4 percent above July 2014 (103.3). The index has increased year-over-year for 11 consecutive months and is the third highest reading of 2015, behind April (111.6) and May (112.3).
Lawrence Yun, NAR chief economist, says the housing market began the second half of 2015 on a positive note, with pending sales slightly rising in July. "Led by a solid gain in the Northeast, contract activity in most of the country held steady last month, which bodes well for existing-sales to maintain their recent elevated pace to close out the summer," he said. "While demand and sales continue to be stronger than earlier this year, Realtors® have reported since the spring that available listings in affordable price ranges remain elusive for some buyers trying to reach the market and are likely holding back sales from being more robust."
Looking ahead, with inventory shortages likely to persist into the fall, Yun expects the national median existing-home price to increase 6.3 percent in 2015 to $221,400. Yun forecasts total existing-home sales this year to increase 7.1 percent to around 5.29 million, about 25 percent below the prior peak set in 2005 (7.08 million).
"In light of the recent volatility in the stock market, it's possible some prospective buyers may err on the side of caution and delay decisions, while others may view real estate as a more stable asset in the current environment," said Yun. "Overall, the prospects for ongoing strength in the housing market remain intact for now. The U.S. economy is growing — albeit at a modest pace — and the labor market continues to add jobs."
Adds Yun, "Uncertainty in the equity markets — even if the Fed raises short-term rates in September — could stabilize long-term mortgage rates and preserve affordability for buyers."
The PHSI in the Northeast increased 4.0 percent to 98.8 in July, and is now 12.1 percent above a year ago. In the Midwest the index remained unchanged at 107.8 in July, and is now 5.7 percent above July 2014.
Pending home sales in the South increased slightly (0.6 percent) to an index of 124.2 in July and are now 6.5 percent above last July. The index in the West declined 1.4 percent in July to 103.0, but is still 7.5 percent above a year ago.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.
NOTE: Existing-home Sales for August will be reported September 21, and the next Pending Home Sales Index will be September 28; release times are 10:00 a.m. EDT.
by National Association of Realtors
9 Things in Your Home That You’re Not Caring for ProperlyI’ll be honest, the last time I replaced my AC filter was the month after I moved in. The last time I maintained my lawnmower? No idea. Weather-proofed my shoes? Let’s just change the subject.
When you’re busy, simple maintenance tasks can be pushed down the to-do list. But taking the time to maintain these expensive items can save you buku bucks down the line. So stop skipping maintenance tasks, and start knocking these babies off of the list.
Here’s a quick reminder of some things that might deserve extra attention this weekend:
Gutters
Cleaning your gutters avoids much bigger problems, like repairing the siding and landscaping of your house from water damage. When your gutters fill up with leaves and debris, they essentially become useless and can no longer filter water into your drainage system.
The best time to clean your gutters is twice a year: at the beginning of fall and the beginning of spring. If you’re running behind schedule for your spring session, it’s time to get out the ladder. If time doesn’t allow, check out these local gutter cleaning services.
Refrigerator Coils
After your air conditioner, your refrigerator is probably the largest energy sucker in your home. So it’s a good idea to clean your refrigerator coils. Here’s how.
Lawnmower
After a long winter, your lawn mower deserves a little attention. They have air filters that need to be changed, blades to sharpen and oil to change. It’s also a good idea to replace the spark plug. For more details and tips, check out this guide from Angie’s List.
Leather
Leather lasts (almost) forever if you take good care of it. Pick up some mink oil or a weather protectant spray to keep your leather shoes and jackets supple and happy. We recommend reapplying once a year, or whenever you see a dry spot. If rain is on the way in your area, now is a good time to give your boots a protective layer!
Carpets
You’re probably not vacuuming your carpets enough. Hear us out: For an average, four-person family, you should have a date with your vacuum three times a week. If your family is really active, or if there are rooms that get a lot of action, you should vacuum almost daily.Daily. Otherwise, you’ll have to replace your carpets sooner than expected, which can cost a pretty penny.
Baseboards
Look down, and say hello to your baseboards. Those attractive things don’t typically get the love they deserve. Dust and dirt piles up, and before you know it they’re just plain gross. Follow these steps to keep your baseboards stylin’ and profilin’.
Window Tracks
You clean your window panes? Nice work. What about the window tracks? Yeah … about that. Window tracks are those things that make it possible to open and close your window. Over time, they become magnets for bugs, dirt and nastiness. To clean them up, you’ll need white vinegar, a few Q-Tips and your handheld vacuum device. Here’s the easy step-by-step.
Locks
Locks are pretty important. They keep the bad guys out, and the little ones in. Plus, they’re pretty handy when you head out of town. But, how often do you maintain yours? Maintaining your locks takes about five minutes, and can save you from needing a lock replacement, which can cost $200 or more. If you have lots o’ doors, the price only goes up from there. To take care of your locks, follow these steps.
Furnace
If your furnace goes kaput, it’s a big, scary, expensive ordeal. And if you need to replace it, we’re talking $10,000. That’s not exactly chump change! So, why not be proactive andchange your furnace filter regularly? Depending on the type of furnace you have, you may need to replace your filter as often as once a month.
by Brightnest
