The latest report, just published today by the Shenehon Center for Real Estate is not a significant shocker. Current trends of single family housing supply shortages continue. Herb Tousley, Director of the University of St. Thomas’ Shenehon Center for Real Estate, gave interesting insights this month. Many people have attributed the shortages to simple reasons such as increased demand due to millennials and generation X’ers beginning to settle down which are true, but Mr. Tousley brings up a point seemingly looked over, the recent actions of investment vehicles.
Affordable housing is and has been a buzzword in the real estate industry for years. It carries many misconceptions. Let’s clear up these misconceptions before going further.
- First, affordable housing is not typically affordable to everyone. It is affordable in that rent or sale value is reduced from market rates in order to allow individuals and families below the median income level to not be “overburdened” by rent or mortgage payments.
- Second, the majority of people assisted HAVE jobs and ARE productive members of their communities in which they reside. The idea that affordable housing induces crime and the lowering of community home values, to name a few, is false.
- Third, affordable housing is just like any other rental or purchase agreement with the addition of a historical income check. Owners and tenants undergo credit checks and asked of employment. Just in case you weren’t convinced when I stated earlier that a majority of affordable housing owners and tenants are employed.
So, why is this topic being brought up? Of almost 116 million households surveyed by the 2013 American Housing Survey, 36 percent are by definition overburdened by housing costs. To be overburdened by Federal government definition, a household must pay more than 30 percent of their yearly income. There are multiple perspectives to even this number, but before “Part 2” of this discussion, we ask the reader to do some research.
Do you think more affordable housing is needed? Is it a policy issue? Is it a supply and demand issue?
Our reason to talk about affordable housing is simple. With more than a third of the United States overburdened by housing costs and as a part of the University of St. Thomas, the Shenehon Center for Real Estate serves as a resource to the commercial, industrial, residential and corporate segments of real estate industry and the community to advance the public interest in real estate issues and to advance the common good.
St. Thomas’ fourth semiannual survey of 35 industry leaders measures sentiment and is designed to be a forecasting tool.
Leaders in the Twin Cities single-family home-construction industry are generally optimistic about market conditions for the coming year although they have concerns about increasing mortgage rates and higher costs of land and building materials. That’s according to a new survey conducted by the University of St. Thomas Shenehon Center for Real Estate in partnership with the Builders Association of the Twin Cities.
The Twin Cities Home Builders Survey is patterned after St. Thomas’ Minnesota Commercial Real Estate Survey that began in 2010. The Home Builders Survey polls the same panel of 35 industry leaders annually in June and again in December about their expectations for the upcoming year in six key areas of the housing market. These experts are asked to assign a number of zero to 100 for each of the six questions. A midpoint score of 50 is neutral; scores higher than 50 indicate a more favorable outlook and scores lower than 50 indicate a more pessimistic outlook.
“The industry leaders we poll every six months are actively engaged in studying both the demand and supply side of the housing market,” said Herb Tousley, director of real estate programs at the university. “Since they are involved in creating new housing units and adjusting supply-to-demand conditions, these individuals are close to the actual changes taking place in the market.” “These results align closely with what we are hearing from the market and our members.” Said David Siegel, Executive Director of the Builders Association of the Twin Cities. “While there is a great need for residential construction in the Twin Cities, there are still several factors holding it back including land prices, the regulatory burden and a shortage of labor.”
Here are the scores for each of the six questions that were asked in August 2017:
Housing Starts: 65
This score increased increased from 61 in December 2016 to 65, it indicates a high expectation that the number of single-family housing starts will show a marked increase in 2018. Last year was one of the best in recent years with about 5,300 permits issued.
Sale Price per S F: 74
This score is even more optimistic than last December’s score of 72. It reinforces the panel’s continued expectations that home prices will continue to increase. The net result is the belief that sale prices will increase at a rate that will more than offset the expected increases in project costs.
Land prices: 23
At 23 this index has decreased sharply from last December’s score of 31 moving even deeper into the pessimistic range. Indications are that the rate of increased land prices will accelerate in 2018. While there may be enough finished lots available, the higher land prices will squeeze profitability.
Availability of finished lots: 60
This index increased from 51 last December to 60 in June reflecting builders increased optimism that there will be an increase in the availability of finished lots in 2018. An adequate supply of well-located finished lots is crucial to the health of the home building industry.
Cost of building materials: 24
The outlook for the expected increases in the costs of building materials continues to persist. This index moved from 29 in December 2016 to an even more pessimistic score of 24 in June 2016. This score is an indication of increased concern by our panelists that much of the gain from increased sale prices and more building starts will be offset by higher costs. These expected increases in costs could depress profitability and could reduce the number of new homes built.
Mortgage rates: 28
This index remains unchanged at 28. It is an indication that the panel continues to expect mortgage rates to increase in the next 12 months. Although mortgage rates increased during the fourth quarter of 2016, most panelists are expecting an additional increase of ¼% to ½% half a percent within the next year. The affordability issues created by higher rates could put a damper on home-building activity.
Additional details can be found on the Shenehon Center’s website: http://www.stthomas.edu/business/centers/shenehon/research/default.html
Could You, Would You, Buy a House Sight Unseen?
First Half of 2017 – 3 Major Home Price Trends
The extreme shortage of homes available for sales is resulting in a new phenomenon of buyers who are purchasing homes sight unseen. Twenty years ago, virtual tours and 3D graphics were mainly science fiction in movies like The Fifth Element, and a “sight-unseen” purchase literally meant a buyer had no experience of the property other than static photographs. Buyers were in essence blindfolded. Today, 3D and virtual technologies have become a reality. They are able to bring a property experience to the “sight-unseen” purchase. A number of local real estate brokers have noted this ingress of technology into the real estate industry and how it has given them a new tool to present properties. One Minneapolis based broker who has personally sold 3 properties sight-unseen in the last year, said the Minneapolis market has recently seen buyers more willing to at least offer sight-unseen. All of our conversations with Minneapolis realtors shared the opinion that technology is impacting the industry. They stated that listing price and anticipated time on the market are main factors on whether a virtual tour is created. The description of the Minneapolis “sight-unseen” buyer was someone looking to relocate from out of state or internationally and has experience in home buying (i.e. not a first time home buyer). An interesting point, technology can actually be a drawback for certain listings. We were told technology removes the interactive sales process; buyers experiencing a virtual tour may never visit the property in isolation from the neighborhood experience.
Twin Cities Home Price Trends Through the First Half of 2017
Price Appreciation is Outstripping Income Growth
- Median sale prices continue to increase at record rates. Between May and June the median sale price increased 3.6%. For the first ½ of 2017 through June median sale prices increased at the red hot pace of 15.1%. The year over year increase for homes sold between June 2016 and June 2017 was 7.0%. These rates of increase are far exceeding wage and income growth and will begin to cause affordability issues for homebuyers if these trends continue
- Market Still Lacks Adequate Inventory
- While the availability of homes for sale has improved slightly the number of homes for sale has been consistently running 15% – 20% less than a year ago and 20% – 25% less than 2 years ago. While the construction of new homes has picked up notably this year we are still not building enough new homes to build our way out of the current short supply situation. It will take many more new listings to get the housing market more balanced in terms of supply and demand.
- Tight Inventory Also Impacting Rental Markets
- The lack of homes available to purchase is creating a situation where potential home buyers are unable to find a home to buy causing them to remain in rental housing for a longer period of time. Even though there were over 4,000 new apartment units delivered in 2016 and given that 2017 is expected to be another record year for new units delivered, the market is expected to absorb all of the new construction. Vacancy rates may increase slightly in the short run in some areas as new developments come on line, but overall occupancy will remain high through the end of this year. Minneapolis / St. Paul is one of the tightest rental markets in the country. Rent growth was 4.8% in 2016 and is expected to be at least that much in 2017. That rate of increase is higher than the expected wage and income growth of 2% – 3%. Continuation of this trend over time will continue to create an affordability gap resulting in renters having to pay an increasingly larger percentage of their income for housing.
Last evening, I watched the Delano fireworks. The show was excellent and the lightning made it even more interesting. It got me thinking about the past, and how 10 years ago, my family would get there 5 or 6 hours early to get prime sitting/parking real estate to see fireworks up close. Whereas, now, as long as we can see the fireworks it is a good spot. To be honest, the effort to get a good spot doesn’t have the same value as before.
Although, my preferences have changed, finding a spot to park a car or a lawn chair seems like it is even harder to find than 10 years ago. Granted, Delano hosts one of the oldest annual 4th of July festivals in the state, the town has grown substantially, and they don’t seem to ever hold back on the fireworks. A couple years back at the 100th anniversary, the Delano fireworks show had a finale “end-of-show” firework which my friends and I felt from 10 miles away. I digress. Despite my own preferences, people want prime viewing real estate to watch the fireworks up close, but there isn’t enough. As the effort [price] to acquire the sitting space rises, people, like my family, have decided to locate farther away.
To the point, the fireworks show reminded me of the current housing market. Low housing inventories with high demand. From a simple economic standpoint, people should be entering the market as the price rises, but like the fireworks show there is an intangible element to housing. Individually, we all value these intangible attributes of living differently. For example, some people in a median priced house may value geography and education opportunities higher than the house alone, and they may not be able to find a home with similar geography and education. Therefore, they do not enter the market keeping inventory low.
FRED reports the average American family can afford a mortgage. So, why are we not seeing more sales? Can people not afford or not willing to pay current prices? Could it be trends changing social norms (Home ownership)? Whatever the reason, it will be interesting to see at what point housing inventories truly begin to climb.
MINNEAPOLIS, (June 21, 2017)— According to the First-Time Homebuyer Market Report recently released by Genworth Mortgage Insurance this segment of the market is having a big influence on the national housing market. The report found that this demographic accounted for 424,000 single-family home sales, or 38 percent of the total homes sold in Q1 of 2017. This amount is an 11 percent increase from Q1 2016, and the most since 2005. Their source data dates back to 1994 and analyzes over 20 million records. The survey tracks home sales for first-time homebuyers on a monthly basis, publishes quarterly, and compares the data against national housing market indicators.
“The first time home buyer segment is poised for additional growth in the Twin Cities. In fact, historically low interest rates and a strong local economy are all feeding demand in this market segment.” said Herb Tousley, director of real estate programs at the University of St. Thomas.
There are some head winds that are creating a drag on the willingness and ability of first time buyers to jump into home ownership. Student loan debt is a major factor making it very difficult to save for a down payment, qualify for a mortgage, and afford a mortgage payment. Additionally, the extreme shortage of moderately priced homes is making it difficult for first time buyers to find affordable homes in good locations.
The limited availability of homes to buy is creating upward pressure on sale prices. Home prices have been rising faster than wages for the last several years. This situation is starting to create affordability issues for first time buyers who typically do not have large down payments. The idea of home ownership is still very much alive among younger potential home buyers. However, due to the aforementioned factors many are needing to delay their first home purchase by several years.
Setting New Records
The Twin Cities housing market continues to set new records in May. Record high median sales prices and historically low supply continue to dominate the market. The overall median sale price jumped from $245,500 in April to $250,000 in May.
Since the housing bubble burst in 2008, the market has seen an increase in demand for homes, but home inventories remain stagnant. Further, either from the bank restrictions or consumer caution new home growth has been at record lows for the last 10 years. Whether this is just a trend or due to socio-economic reasons can be debated, but statistics do show Millenials are living with their parents longer and seem to be putting off buying homes due to a different economic situation than previous generations at the same age (US Census).
Further a recent housing report by Joint Center for Housing Studies of Harvard University, posit similar statistics in the market strengthening the argument that Millenials and uncertainty are holding down the housing market.
1. For-sale inventories dropped even lower over the past year.
For the fourth year in a row, the inventory of homes for sale across the US not only failed to recover, but dropped yet again. At the end of 2016 there were an historically low 1.65 million homes for sale nationwide, which at the current sales rate was just 3.6 months of supply – almost half of the 6.0 months level that is considered a balanced market.
2. Fewer homes were built over the last 10 years than any 10-year period in recent history.
Even with the recent recovery in both single-family and multifamily construction, markets nationwide are still feeling the effects of the deep and extended decline in housing construction. Over the past 10 years, just 9 million new housing units were completed and added to the housing stock. This was the lowest 10-year period on records dating back to the 1970s, and far below the 14 and 15 million units averaged over the 1980s and 1990s.
Read more of the Full Article or go straight to the full Housing Report by Joint Center for Housing Studies of Harvard University
Negative Equity – Continued Improvement in 2016 but Still an Issue
The number of homeowners with negative or near negative equity continues to decline but is still high by historical standards. Lack of equity is a reason that many homeowners are not willing or able to put their homes up for sale which is a contributing factor to the very low number of homes for sale in the Twin Cities. As can be seen in the table below about 1 in 5 homeowners in the metro area with a mortgage is in a negative or near negative situation.
% of Home Owners in the Twin Cities with Negative or Near Negative Equity
|County||Negative Equity*||Near Negative Equity**||County||Negative Equity*||Near Negative Equity**|
|Washington||6.6%||21.1%||St. Croix (WI)||7.9%||23.0%|
* Negative Equity – Owes more than the house is worth
** Near Negative Equity – Equity is less than 20% of value
“The problem with near negative equity is that home owners are not actually underwater, but in many cases they do not have enough equity after they sell their home to pay for the costs of buying a new home, including a down payment, commissions and taxes” said Herb Tousley, director of real estate programs at the University of St. Thomas. In 2017, home prices are expected to increase about 5% – 6% in the Twin Cities, which will free many more homeowners from negative equity Rising prices and loan repayments will also continue to improve the equity position for homeowners, but this will be a slow process and we should be prepared for higher than normal negative and near negative equity to be a part the housing market for a long time to come.
High demand and low supply of homes for sale continue to put upward pressure on sale prices in April. The overall median sale price jumped from $237,300 in March to $246,000 in April. The traditional, non-distressed median sale price is at a new all-time high at $250,000, a 4.2% increase compared to April 2016. On the supply side in April there were 10,969 homes available for sale, 19.9% less than April 2016. Again, the shortage is most acute in the low to moderately priced homes. See the table below.
Homes For Sale vs. Closed Sales – Where The Action Is
|Price Range||Number of Homes For Sale||% of Total Homes For Sale||Number of Closed Sales||% of Total Sales||Months Supply|
|0 – $200,000||1992||18.2%||1449||30.7%||1.2|
|$200,000 – $400,000||4554||41.5%||2484||52.5%||1.9|
|$400,000 – $600,000||2270||20.7%||563||11.9%||4.2|
The number of homes sold in April was 4,726 compared to 4,348 in March and 5,252 in April 2016. That is 10% less than the number of sales recorded in the same period a year ago. We believe that this is a reflection that extreme the low supply of homes for sale is beginning to impact the number of homes sold in April. This this the first time since 2011 that the number of closed sales has declined on a year over year basis. The number of new listings was 7,747, which is 8.3% less than recorded in April 2016. That decrease is a sign that the short supply situation is likely to continue for at least the next several months. We believe that the changes observed in April are the beginning of an indication that the supply and demand sides of the market are becoming slightly less imbalanced.
The St. Thomas Indexes
Here are the Shenehon Center’s monthly composite index scores for April 2017. The index, which tracks nine data elements for the three types of sales (traditional, short sales and foreclosures) started in January 2005. For that month, the center gave each of the three indexes a value of 1,000.
At a level of 1172 the April UST Residential Real Estate Traditional Sale Composite Index is up significantly, registering a 3.1% monthly increase compared to the level of 1137 that was recorded in March.
The UST Residential Real Estate Short Sale Composite Market Health Index was 1045 in April, up 3.1% from the 1014 recorded in March.
The UST Residential Real Estate Foreclosure Composite Index was observed in April at 924 a significant increase over the 901 recorded in March.
For more information, visit the Shenehon Center’s complete report for March 2017 at http://www.stthomas.edu/business/centers/shenehon/research/default.html.The report is also available for free via email from Tousley at email@example.com.
The growing number of single-family rentals is contributing to a chronic shortage of moderately priced homes on the market.
More and more single-family rental homes — a trend that has been developing locally and nationally since the start of the Great Recession in 2008 – means there are fewer and fewer single-family homes available for purchase. According to the most recent market analysis by the Shenehon Center for Real Estate at the University of St. Thomas’ Opus College of Business, this increased percentage of rental homes is yet another factor contributing to a historically low supply of homes for sale in the 13-county Twin Cities region. In earlier reports, the center examined other causes that contribute to the shortage: low or negative equity during the recession, concerns about job or financial situations, and a trend of keeping homes longer than in the past. Earlier this year, the center predicted that the persistent low availability of homes for sale, coupled with strong demand, will result in a 5 percent increase in the median sale price of Twin Cities homes this year.
“On a national and local basis we have seen the formation of companies and funds such as Blackstone’s Invitation Partners and American Homes 4 Rent that are buying large numbers of single-family homes for investment purposes,” said Herb Tousley, director of real estate programs at the university. “Blackstone is the largest of single-family investors; they currently own about 50,000 homes across the country,” he said. “Their strategy was to purchase single-family homes at deeply discounted prices during the recession, rehab the property, and then hold the property longterm as a rental property. Even though home values have increased since the end of the recession, many of these companies are still actively buying. “Institutional investors have largely figured out how to maintain and efficiently operate ‘scattered-site single family rentals’ on a professional basis. Most of these homes are in established neighborhoods. Renovation and a regular maintenance schedule preserves the housing stock and maintains the quality of the surrounding neighborhood,” Tousley said.
This is a trend that is not only occurring in the core cities of Minneapolis and St. Paul, it is happening all across the Twin Cities metro area. The total number of single-family homes being rented in suburban neighborhoods has increased from 12,000 in 2000 to over 28,000 in recent years, according to data compiled by the Metropolitan Council. Of the 93 cities that were tracked, all but 32 saw their single-family rentals grow by at least 100 percent between 2000 and 2013.
Where are the Single Family Rentals in the Twin Cities? Top 5 Cities by %
|City||Single Family Homes as Rentals in 2000||% of Rentals in 2000||Single Family Homes as Rentals in 2013||% of Rentals in 2013|
Meanwhile, the number of homes available for sale that are priced between $150,000 and $350,000 has been steadily declining since 2008. Tousley said that homes in this price range are very attractive to the large institutional investors because they make good rental properties that provide a good return to their investors. However, homes in that same price range also are the most attractive to first-time homebuyers and first-move-up buyers. “The homes that are purchased by the institutional investors are going to be held longterm as rental properties so they in effect would be ‘off the market’ and will not be available for sale for a long period of time. The institutional ownership of large numbers of homes as single-family rentals is a relatively new development in the housing market and it is one more factor that is contributing to the chronically low number of homes available for sale,” he said.
February Market Summary
The housing market in the Twin Cities continued on its normal seasonal pattern in February. As expected the overall median sale price was essentially the same as January at $223,000. The traditional, non-distressed median sale price was $230,000, a 4.2 percent increase compared to February 2016.
The number of homes sold in February was 2,696 compared to 2,814 in January and 2,716 in February 2016. The percentage of distressed sales (foreclosures and short sales) ticked up slightly in February at 9.2 percent, however that percentage should continue to decline to pre-recession levels as we move into the spring selling season.
As noted earlier, the continued shortage of homes available for sale continues to be an issue. As buyers become more active in the spring-summer selling season, the shortage will create additional upward pressure on sale prices.
“The concern is that if this continues over a long period of time … where median sale prices are increasing faster than wages and income … it will begin to create affordability issues especially if interest rates begin to rise,” Tousley said.
The St. Thomas indexes.
Here are the Shenehon Center’s monthly composite index scores for February 2017. The index, which tracks nine data elements for the three types of sales (traditional, short sales and foreclosures), started in January 2005. For that month, the center gave each of the three indexes a value of 1,000.
- The February 2017 index score for traditional sales was 1,114, down 0.4 percent from January 2017 and up 4.1 percent from February 2016.
- The February 2017 index score for short sales was 993, down 2.5 percent from January 2017 and up .1 percent from February 2016.
- The February 2017 index score for foreclosures was 842, up .2 percent from January 2017 and up 7.5 percent from February 2016.
More information online
The Shenehon Center’s complete online report for February can be found at: http://www.stthomas.edu/business/centers/shenehon/research/default.html.
The report is available via email from Tousley at firstname.lastname@example.org.
Current trends, including the low number of moderately priced homes, are expected to continue through the end of 2017.
Current real estate trends in the 13-county Twin Cities region, including the historically low number of moderately priced homes available to purchase, are the result of several long-term trends that are expected to change slowly over time. That’s the conclusion reached by the Shenehon Center for Real Estate at the University of St. Thomas’ Opus College of Business. The center examined the Twin Cities’ long-term trends, expected to continue through the end of 2017, in its monthly analysis of metro area real estate data. “The historically low-supply-of-homes-for-sale situation has been with us for the last several years although it has been most acute since mid-2015,” said Herb Tousley, director of real estate programs at the university.
He cited five statistics that illustrate the housing supply-and-demand situation in the Twin Cities:
- Days on Market: It was 53 days in July. That’s 15 percent less than a year ago and the fastest turnover since 2007.
- Month’s Supply: It was 2.9 months in July. That’s 24 percent less than a year ago and the lowest 12-month average since 2005.
- New Listings: It was 7,522 in July. Down 14 percent from June and 6 percent from a year ago.
- Closed Sales: It was 6,030 in July. The annualized number of homes sold has increased 59 percent since early 2011.
- Homes for Sale: It was 14,457 in July. The annualized number of homes for sale has decreased 48 percent since early 2011.
The shortage of homes is most pronounced for homes selling for less than $200,000 and for those selling between $200,000 and $399,000.
For example, in July there was only a two-month supply of homes selling for less than $200,000 and a 2.6-month supply for homes selling between $200,000 and $399,000. However, there was 5.2-month supply of homes selling between $400,000 and $599,000 and a 10.5-month supply of homes selling for more than $600,000.
Also in July, 56.3 percent of homes available for purchase were under $400,000 while 81.7 percent of homes sold were under $400,000.
The median price for homes sold in the Twin Cities in July was $239,000. That’s down $6,000 from the all-time high median sale price of $245,900 that was set in June. However, it still is in record territory; the previous high was $238,000 set in June 2006.
Supply Side Trends
The Shenehon report cited these long-term underlying trends on the supply side of the Twin Cities market.
- Americans are keep their homes longer. CoreLogic reported recently that the number of years homeowners owned their homes increased by three years between 2007 and 2013 and it has increased an additional year since then.
- The homeownership in the Twin Cities, as reported by the U.S. Census Bureau, was 68.6 percent in the second quarter of 2016. That’s the highest rate of any major metro area in the nation. Nationally, the rate is 62.9 percent.
“Since we have a very high ownership rate and homeowners are keeping their homes longer, the result is fewer existing homes being listed and a shortage of homes available for sale,” Tousley said.
Demand Side Trends
According to this month’s Shenehon report, “On the demand side the simple answer is that people want to live here.”
- The Twin Cities population has been increasing and is expected to increase for at least the next 10 to 15 years. This is mainly due to migration from rural areas and other parts of the country, and immigration.
- Housing is affordable. According to a recent Bloomberg News report, the Twin Cities area ranks fourth in the top-10 list of most affordable places for people between the ages of 24 and 44 to purchase a home.
“These people are going to need a place to live here,” Tousley said. “Our diverse economy, strong job growth and high median income attracts people to the area.
“Favorable economic conditions coupled with historically low interest rates and an increasing number of potential home buyers will continue to create strong demand for single-family homes.”
How long will the shortage last?
According to the Metropolitan Council, the Twin Cities region had 1,176,600 owned or rented households in 2015, up almost 59,000 since 2010. During that time, however, only 43,000 housing units were added. The remaining 16,000 new households moved into existing housing, and that in turn reduced the vacancy rate. “This growth pattern is expected to continue for at least the next five years,” Tousley said. “It is unlikely that we will be able to build our way out of this situation in the near term. “Single family home builders have not yet returned to pre-recession production levels. Over the last several years there has been a great deal of multi-family construction but much of this new product has been high-end luxury units, beyond the financial reach of many households. “For the housing market to become more balanced between buyers and sellers we are going to have to add a significant number of affordably priced rental and for-sale housing units. “These units need to be affordable to households who earn the area median income in order to keep up with the expected population growth in the Twin Cities market area. As this happens the market should begin to slowly come back into balance. “However, this is a process that is going to take a number of years and until then we should expect similar market conditions to what we have experienced over the last couple of years. “In the meantime, expect to see solid annual price appreciation for existing homeowners. As you can see from the table below in the past year the supply of homes for sale has become even tighter, especially for homes are priced at less than $400,000
The St. Thomas indexes.
Here are the Shenehon Center’s monthly composite index scores for July 2016. The index, which tracks nine data elements for the three types of sales (traditional, short sales and foreclosures), started in January 2005. For that month, the center gave each of the three indexes a value of 1,000.
- The July 2016 index score for traditional sales was 1,192, up .3 percent from June 2016 and up 5.7 percent from July 2015.
- The July 2016 index score for short sales was 1,031, up 2.1 percent from June 2016 and up 5.9 percent from July 2015.
- The July 2016 index score for foreclosures was 875, which is unchanged from June 2016 and up 7.1% from July 2015.
For the third consecutive month, the score for traditional sales set new record highs. “Although the increase was small in July, it is the result of a continuing tight supply of homes for sale couple with very low interest rates,” Tousley said in Shenehon Center’s July report.
More information online
The Shenehon Center’s complete online report for July can be found at: http://www.stthomas.edu/business/centers/shenehon/research/default.html.
The report is available free via email from Tousley at email@example.com.