National
Economy Watch: Interest Rates Cool a Bit
Mortgage interest rates spiked unexpectedly a few weeks ago and have been easing off since.
TODAY’S DEALS: LATA Acquires Three Properties for $98.9M
Landmark Apartment Trust of America buys three assets; Bascom Arizona Ventures completes a 226-unit purchase; and Centerline Capital Group completes a $66.5 million refinancing of two multifamily properties
Economy Watch: New Home Sales Rise in June
The Census Bureau reported on Wednesday that new home sales in June were at an annualized rate 497,000 units, representing an 8.3 percent increase from May, when sales were an annualized 459,000 units.
Second Quarter Apartment Markets Mixed in Latest NMHC Survey
While demand for apartment homes remained strong, rising interest rates exerted negative pressure on the industry’s ability to secure debt financing according to the National Multi Housing Council’s July Quarterly Survey of Apartment Market Conditions.
TODAY’S DEALS: Behringer Harvard Acquires Luxury Community
Behringer Havard buys a San Francisco asset; Crimson Holdings acquires a 40-unit property in the San Fernando Valley; and NorthMarq Capital arranges a $14.74 million Freddie Mac mortgage in 45 days.
New-Home Sales Jump 8.3 Percent in June
WASHINGTON, July 24 – Sales of newly built, single-family homes surged 8.3 percent to a seasonally adjusted, annual rate of 497,000 units in June, their fastest pace in the last five years, according to data released today by HUD and the U.S. Census Bureau.
“New-home buyers are returning to the market in larger numbers as firming prices, shrinking inventories of homes for sale and improving local economies convince them that now is the time to make their move,” said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. “Meanwhile, the very low supply of new homes on the market is indicative of the difficulty that builders are having in keeping up with demand due to availability issues with regard to materials, credit, labor and lots for development.”
“The takeaway from this report is that the housing recovery is solidly on track and isn’t going to be derailed by slightly higher mortgage rates,” said NAHB Chief Economist David Crowe. “After years of fence-sitting, buyers are back and are ready to move forward with an investment in homeownership.” Looking ahead, he said he anticipates further, though more incremental gains in sales through the end of this year.
Three out of four regions saw solid gains in new-home sales activity in June, with the Northeast, South and West posting increases of 18.5 percent, 10.9 percent and 13.8 percent, respectively. The Midwest posted an 11.8 percent decline following an above-trend bump in activity in May.
The inventory of new homes for sale declined to 161,000 units in June, marking a razor-thin, 3.9-month supply at the current sales pace. The months’ supply of homes for sale has not fallen below this level since March of 2004.
Economy Watch: More Housing Indexes Point Upward
U.S. house price appreciation continued in May, according to the Federal Housing Finance Agency, rising 0.7 percent from the previous month, as measured by the agency’s monthly House Price Index.
TODAY’S DEALS: The Richman Group Closes $291M in Affordable Tax Credit Funds
The Richman Group to add 3,000 affordable units to its portfolio; Quantum Capital arranges $19.3 million in financing for a San Diego portfolio; and Ariel Property brokers the sale of a five-building portfolio located in Queens, N.Y., for $38 million.
Economy Watch: Total Existing-Home Sales Dropped
The National Association of Realtors reported that total existing-home sales dropped 1.2 percent in June to an annualized rate of 5.08 million units—including single-family, condos, co-ops and townhouses—from a downwardly revised 5.14 million units in May.
Economy Poised for a Stronger Second Half of 2013
The ongoing housing recovery coupled with improvement in both consumer confidence and the labor market are expected to boost economic growth in the second half of the year, according to Fannie Mae’s Economic & Strategic Research Group.