House price monitor.01.2012
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Transcript of House price monitor.01.2012
Home Price Monitor January 2012
National Association of REALTORS®
Research Division
Cutting Through the Noise: Various Home Price Measure
Highlights
• On a month-to-month basis home prices rose slightly in November as measured by NAR, FHFA, and CoreLogic’s distressed-excluded measure. Declines in November were measured by Case Shiller and CoreLogic’s full market index. On a year over year basis, small declines persist across measures in November within the range that has been typical of recent months.
• NAR data show a monthly increase for December and suggest that the decline from December one year ago is smaller than in the 2 previous months.
• New home prices continue to fluctuate greatly due to low levels of construction and purchase activity.
• Distressed sales, which hold back existing home prices, comprised 32 percent of sales in a recent survey of Realtors—down from nearly 40 percent a year ago but slightly above the recently typical 30 percent mark. The seasonal slowdown in sales may explain the increase in distressed sales as a share of total sales even as the number of distressed sales remains largely constant.
• The increase in the share of distressed sales may lower reported transaction prices somewhat—especially as seen in the Case-Shiller and CoreLogic indexes.
Outlook
• From a broad perspective, many of the same trends continue to dominate the
outlook. Low inventories, declining delinquency rates, and stable or increasing
foot traffic should help to support prices, though buyers searching for the
right home may have fewer options from which to choose. Very limited new
construction means that buyers initially searching for a new home may find
more selection among existing homes.
• Client pricing expectations may continue to present challenges. Data from the
Profile of Home Buyers and Sellers show that sellers typically sold their
homes for 95% of the listing price, and 61% reduced the asking price at least
once.
• Affordability remains high and job hiring data is showing signs of
improvement. An improving economy coupled with affordability could
provide a needed jolt to primary residence sales. In fact, blue-chip economists
believe that a technical bottom to the market is at hand.
Home Prices
100.00
120.00
140.00
160.00
180.00
200.00
220.00
240.00
260.00
280.00
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$220,000
$240,000
$260,000
$280,000
No
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Feb
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Feb
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Feb
-05
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Feb
-06
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Feb
-07
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-07
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Feb
-08
May
-08
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Feb
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NAR Median Sales Price: Total Existing Homes, United States ($)New 1-Family Houses: Median Sales Price (Dollars)FHFA House Price Index: Purchase Only, United States (NSA, Jan-91=100)S&P/Case-Shiller Home Price Index: Composite 20 (NSA, Jan-00=100)S&P/Case-Shiller Home Price Index: Composite 10 (NSA, Jan-00=100)CoreLogic National House Price Index (NSA, Jan.2000=100)
Sources: NAR, Case-Shiller, CoreLogic, FHFA, Census, HAVER
Home Price Data – Year over Year Change
Sources: NAR, Case-Shiller, CoreLogic, FHFA, Census, HAVER
-25
-20
-15
-10
-5
0
5
10
15
20
25
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May
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Feb
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May
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Feb
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May
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No
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Feb
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May
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No
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Feb
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May
-10
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Feb
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May
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NAR Median Sales Price: Total Existing Homes, United States ($)New 1-Family Houses: Median Sales Price (Dollars)FHFA House Price Index: Purchase Only, United States (NSA, Jan-91=100)S&P/Case-Shiller Home Price Index: Composite 20 (NSA, Jan-00=100)S&P/Case-Shiller Home Price Index: Composite 10 (NSA, Jan-00=100)CoreLogic National House Price Index (NSA, Jan.2000=100)
Home Price Changes
*All data are not seasonally adjusted. Monthly changes should typically be computed only for Seasonally Adjusted (SA) data. Because these change rates are often covered in the media regardless of their suitability for analysis, they are presented here but should be used with caution. Annual (yr-over-yr) changes computed for Not Seasonally Adjusted (NSA) data give a measure that is not affected by seasonal fluctuations.
Data Series
Nov-11
Monthly
Change*
Nov-11
Annual
Change*
Dec-11
Monthly
Change*
Dec-11
Annual
Change*
Next
Release
Date
NAR Median Sales Price: Total Existing Homes 2.0% -3.6% 0.3% -2.5% 22-Feb
NAR Median Sales Price: Existing 1-Family Homes 1.8% -4.0% 0.7% -2.5% 22-Feb
FHFA House Price Index: Purchase Only 0.8% -1.8% -- -- 23-Feb
S&P/Case-Shiller HPI: Composite 20 -1.3% -3.7% -- -- 28-Feb
S&P/Case-Shiller HPI: Composite 10 -1.3% -3.6% -- -- 28-Feb
CoreLogic National HPI -1.4% -4.3% -- -- Mid-Feb
CoreLogic National HPI - Distressed Excluded 0.2% -0.6% -- -- Mid-Feb
New 1-Family Houses: Median Sales Price -2.4% -1.8% -2.5% -12.8% 16-Feb
Sources: NAR, Case-Shiller, CoreLogic, FHFA, Census, HAVER
Spread of Existing Home Price Changes Year over Year
Sources: NAR, Case-Shiller, CoreLogic, FHFA, HAVER
-25.00
-20.00
-15.00
-10.00
-5.00
0.00
5.00
10.00
Supply and Demand Factors – Inventory
Sources: NAR
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
NAR Total Existing Homes Avail for Sale at EOP, United States (Units, NSA)
NAR Months' Supply of Total Existing Homes, United States (Months)
NAR Months' Supply of Total Existing Homes, United States (Months) (right axis)
NAR Total Existing Homes Avail for Sale at EOP, United States (Units, NSA) (left axis)
Supply – New Housing Starts and Permits
Sources: Census
0
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500
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900
Housing Starts: 1 Unit (SAAR, Thous.Units) Housing Units Authorized: 1-Unit Structures (SAAR, Thous.Units)
Underlying Demand – Job Growth and Hires
Sources: BLS
-2,000
-1,000
0
1,000
2,000
3,000
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6,000
Change in Total Nonfarm Employment (SA, Thous) JOLTS: Hires: Total (SA, Thous)
Potential Job Growth – Openings
Sources: BLS
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
JOLTS: Job Openings: Total (SA, Thous)
Housing Affordability
Sources: NAR
0.0
50.0
100.0
150.0
200.0
250.0
0
5
10
15
20
25
NAR Housing Affordability: Payment as Percent of Income, U.S. (%)NAR Housing Affordability Index: Composite (Fixed + ARM), United States
NAR Housing Affordability Index: Composite (right axis)
NAR Payment as Percent of Income (left axis)
About the Price Data Series
Data Series Strengths/Weaknesses of Data Series
NAR Median Sales Price: Total Existing Homes
NAR Median Sales Price: Existing 1-Family Homes
FHFA House Price Index: Purchase Only
Weighted Repeat Sales (WRS) Index, sourced from Fannie/Freddie purchase &
refinance mortgages (excludes FHA, VA, Jumbo, Subprime)
S&P/Case-Shiller HPI: Composite 20
S&P/Case-Shiller HPI: Composite 10
CoreLogic National HPI
CoreLogic National HPI - Distressed Excluded
New 1-Family Houses: Median Sales Price Based on home builder interviews in the Survey of Construction
Most timely Data, broad geographic coverage, sourced from MLS and Realtor® board
data, data in dollars, total exisiting includes condos and coops
WRS Index, sourced from County recorder data, weighted by property value;
quarterly national index (not shown), monthly 10 and 20-city metro indexes and
composites are 3 month moving averages
Weighted Repeat Sales Index, sourced from database of loan servicing and County
recorder data
Sources: NAR, Case-Shiller, CoreLogic, FHFA, Census, HAVER