iMove Chicago- Real Estate Rentals and Sales

Pending home sales plunge to two-decade low

December 3,2023 | By ERICKSON J OCASIO

Mortgage rate surge triggers historic drop in pending sales in October. With mortgage rates going off the charts, pending home sales fell to their lowest level in over two decades, according to the National Association of Realtors (NAR). The number of contract signings for existing homes dropped 1.5% month over month and 8.5% year over year in October, bringing NAR's Pending Home Sales Index (PHSI) to 71.4 – the lowest since the trade association began keeping records in 2001. Housing industry experts attributed this slump to October's peak mortgage rates. "During October, mortgage rates were at their highest, and contract signings for existing homes were at their lowest in more than 20 years," NAR chief

US existing-home sales plummet in October

November 29,2023 | By ERICKSON J OCASIO

Sales saw their biggest slump for 13 years. Sales of previously occupied homes in the US plunged in October, with rising borrowing costs and still-high prices contributing to the slowest pace of activity for over 13 years. Last month’s sales figures for existing homes were down 14.6% compared with the same time in 2022, and by 4.1% on a monthly basis to a seasonally adjusted annual rate of 3.79 million, according to the National Association of Realtors (NAR). The results missed analyst expectations, with economists on average having anticipated a clip of 3.9 million seasonally adjusted sales, according to FactSet. October’s figures mean sales have now dropped for five months in a row as prices continue to tick upwards despite the market cooldown. The median price of an existing home was up 3.4% on a year-over-year basis to $391,800, the NAR said, marking the

DOJ eyes real estate broker commissions, NAR under scrutiny

October 23,2023 | By ERICKSON J OCASIO

Billions at stake as NAR faces legal challenges amid calls for reform. The US residential housing market is under the microscope, with the broker commission system facing antitrust scrutiny from the Justice Department and two private class-action lawsuits. At the core of the investigation is the commission-sharing system, a structure that typically requires home sellers to pay a 5% to 6% cut of the sale, divided between their agent and the buyer’s agent. Bloomberg reported that a nationwide case to dismantle the commission-sharing structure is not only a potential threat to the National Association of Realtors (NAR), the industry’s lobbying group, but could also lead to drastic change in the real estate landscape. The commission-sharing system, largely unique to the US, is preserved by NAR’s control over many of the country’s multiple listing serv

Buyers of existing homes in the US hit pause amid elevated rates

September 30,2023 | By ERICKSON J OCASIO

Report follows news of decline in homebuyer affordability. Contract signings to buy previously owned homes declined to their lowest level since April 2020, according to new data from the National Association of Realtors (NAR). A decrease of 7.1% in NAR’s Pending Home Sales Index to 71.8 has been noted on the back of sky-high mortgage rates. According to Bloomberg, the decline was larger than all estimates in a Bloomberg survey of economists. Pending sales were down 18.7% year over year. “Some would-be home buyers are taking a pause and readjusting their expectations,” Lawrence Yun, chief economist at NAR, said in a statement. “It’s clear that increased housing inventory and better interest rates are essential to revive the housing market.” High mortgage rates continue to impede housing market

US new home sales down as mortgage rates rise

September 28,2023 | By ERICKSON J OCASIO

Economists note supply is essential in balancing the market. US new single-family home sales dropped to a five-month low as elevated rates continue to put pressure on the housing market, according to Census Bureau data. The recent data released revealed the purchases for new single-family homes plunged by 8.7% to 675,000 in August. July saw much higher sales at 739,000 units sold. “New single-family home sales fell by 8.7% in August to a seasonally adjusted annualized rate (SAAR) of 675,000, but this followed a meaningful upward revision for the July figure of 25,000 to 739,000 SAAR units,” said Doug Duncan, chief economist at Fannie Mae. “July sales were the highest since February 2022. In terms of the supply of listings, the months’ supply jumped eight-tenths to 7.8, the highest since March. The supply of new homes for sale rose 1.2% to 436,000. Of note is

Foreign investment in existing homes hits all-time low

August 6,2023 | By ERICKSON J OCASIO

Supply shortage and high prices deter international homebuyers. Foreign investment in existing residential properties fell to its lowest level since 2009, the National Association of Realtors reported Tuesday. The number of existing homes sold to international buyers from April 2022 to March 2023 declined 14.2% to a record low of 84,600 units. Overall, annual foreign investment was down 9.6% to $53.3 billion. “Sharply lower housing inventory in the US and higher borrowing costs across the world have dented international buyers for two straight years,” NAR chief economist Lawrence Yun explained. The decline was notable among immigrants, who purchased $23.4 billion worth of existing homes. That’s down 31.4% from the prior year and represents 44% of the dollar volume of purchases. Meanwhile, foreign buyers who lived abroad purchased $29.9 billion worth of existing homes,

Housing affordability remains strained despite home price slowdown

August 2,2023 | By ERICKSON J OCASIO

Higher payment for purchase mortgages offsets gain in earnings. Mortgage payments in June remained relatively unaffordable for most homebuyers due to elevated rates and home prices, according to the Mortgage Bankers Association. MBA’s latest Purchase Applications Payment Index (PAPI) showed that borrower affordability was essentially flat in June, with the national median payment applied for by purchase applicants dropping 0.1% to $2,162. While the index decreased slightly, it remained at high levels.