NAR: Fewer House, Higher Prices.

Sounds like the law of supply and demand may be coming in to play in terms of housing.  That's a good thing for folks thinking about selling their home.  Perhaps we are moving from a buyer's market to a seller's??  Let's hope so 'cause I for one am wanting to sell.

According to a news release from the National Association of Realtors, limited supplies of housing inventory held back existing-home sales in May, but sales maintained a strong lead over year-ago levels and home prices are on a sustained uptrend in all regions, according to the National Association of Realtors®.

Total existing-home sales¹, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, declined 1.5 percent to a seasonally adjusted annual rate of 4.55 million in May from 4.62 million in April, but are 9.6 percent above the 4.15 million-unit pace in May 2011.

Lawrence Yun, NAR chief economist, said inventory shortages in certain areas have been building all year. "The slight pullback in monthly home sales is more likely due to supply constraints rather than softening demand. The normal seasonal upturn in inventory did not occur this spring," he said. "Even with the monthly decline, home sales have moved markedly higher with 11 consecutive months of gains over the same month a year earlier."

There are broad-based shortages of inventory in the lower price ranges in much of the country except the Northeast, and in the West supply is extremely tight in all price ranges except for the upper end. "Realtors® in Western states have been calling for an expedited process to get additional foreclosed properties onto the market because they have more buyers than available property," Yun added. Widespread inventory shortages also are found in much of Florida.

Total housing inventory at the end of May slipped 0.4 percent to 2.49 million existing homes available for sale, which represents a 6.6-month supply² at the current sales pace; there was a 6.5-month supply in April. Listed inventory is 20.4 percent below a year ago when there was a 9.1-month supply. Unsold inventory has trended down from a record 4.04 million in July 2007; supplies reached a cyclical peak of 12.1 months in July 2010.

"The recovery is occurring despite excessively tight credit conditions and higher downpayment requirements, which are negating the impact of record high affordability conditions," Yun said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage declined to a record low 3.80 percent in May from 3.91 percent in April; the rate was 4.64 percent in May 2011; recordkeeping began in 1971.

The national median existing-home price³ for all housing types rose 7.9 percent to $182,600 in May from a year ago, the third consecutive month of year over year price gains. The last time there were three back-to-back price increases from the same month a year earlier was from March to May of 2006. "Some of the price gain results from a shrinking share distressed homes in the sales mix," Yun explained.

Distressed homes⁴ - foreclosures and short sales sold at deep discounts - accounted for 25 percent of May sales (15 percent were foreclosures and 10 percent were short sales), down from 28 percent in April and 31 percent in May 2011. Foreclosures sold for an average discount of 19 percent below market value in May, while short sales were discounted 14 percent.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, offers advice to buyers in markets with limited supply. "We are hearing a lot about multiple bidding and quick sales in areas with tight supply, with competition between first-time buyers and cash investors, who have a significant advantage," he said.
"It's extremely important to listen to the advice of your agent and perform all the due diligence that you would normally do in a more balanced market, such as making offers contingent upon a satisfactory home inspection," Veissi said.

First-time buyers accounted for 34 percent of purchasers in May, compared with 35 percent in April and 36 percent in May 2011.

All-cash sales slipped to 28 percent of transactions in May from 29 percent in April; they were 30 percent in May 2011. Investors, who account for the bulk of cash sales, purchased 17 percent of homes in May, down from 20 percent in April and 19 percent in May 2011. "These figures reflect a modest increase in traditional repeat home buyers in May," Yun said.

Single-family home sales slipped 1.0 percent to a seasonally adjusted annual rate of 4.05 million in May from 4.09 million in April, but are 10.4 percent above the 3.67 million-unit level in May 2011. The median existing single-family home price was $182,900 in May, up 7.7 percent from a year ago.

Existing condominium and co-op sales fell 5.7 percent to a seasonally adjusted annual rate of 500,000 in May from 530,000 in April, but are 4.2 percent higher than the 480,000-unit pace one year ago. The median existing condo price was $180,000 in May, which is 8.8 percent above May 2011.

Regionally, existing-home sales in the Northeast fell 4.8 percent to an annual level of 590,000 in May but are 7.3 percent higher than May 2011. The median price in the Northeast was $250,700, up 3.8 percent from a year ago.

Existing-home sales in the Midwest rose 1.0 percent in May to a pace of 1.04 million and are 19.5 percent above a year ago. The median price in the Midwest was $147,700, up 6.4 percent from May 2011.

In the South, existing-home sales slipped 0.6 percent to an annual level of 1.78 million in May but are 9.2 percent higher May 2011. The median price in the South was $159,700, up 7.8 percent from a year ago.

Existing-home sales in the West declined 3.4 percent to an annual pace of 1.14 million in May but are 3.6 percent above a year ago. The median price in the West was $233,900, up 13.4 percent from May 2011. "The sharp price increase in the West results largely from more sales at the upper end of the market," Yun explained.

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. 

Mom to Mom: Tips for Safely Enjoying Fourth of July Fireworks

As brilliant colors blanket the sky and the sound of fireworks echo in neighborhoods this fourth -of-July, the American Academy of Orthopaedic Surgeons (AAOS) offers fireworks safety tips to help prevent injuries during this traditional holiday.

According to the Consumer Product Safety Commission (CPSC), approximately 21,692 people were treated for injuries related to fireworks in 2011.

"Many people view these mini explosives as harmless, when in fact they can be very dangerous to people of all ages," said orthopaedic surgeon and AAOS spokesperson William Obremskey, MD. "Take it from one who picked up a "dud" as a kid and suffered minor burns. You can also lose a finger, damage your eyes or worse. To avoid injury, people should not use fireworks at home, but instead find a park or outdoor location that showcases fireworks."

There are plenty of ways for you to enjoy fireworks this summer without putting yourself or your family at risk. In an effort to reduce the number and severity of firework-related injuries, the Academy offers some safety guidelines for adults who do choose to use fireworks:

• Check with your local police department to determine if fireworks can be discharged legally in your area.  If so, determine which types are legal.
• Never buy or use illegal fireworks.  Their quality cannot be assured. 
• Only adults should light fireworks.
• Never hold lighted fireworks with your hand or place them near the body.
• Always have water handy in case of a fire. For example, a hose hooked to a faucet or a bucket of water. 
• Read the caution label on packaging before igniting.
• Wear safety eyewear when using fireworks.
• Soak used fireworks in water before discarding.
• Never try to relight a firework.
• If you are injured using fireworks, seek immediate medical attention.
• Never allow young children to play with or go near fireworks, including sparklers. They
  seem harmless but sparklers can reach temperatures of more than 1,000 degrees.
• Never handle fireworks if you are under the influence of drugs or alcohol.   

Arkansas AG: Help Your Family Surf Safely on Social Networks

According to Arkansas Attorney General Dustin McDaniel, while social networking and other public Internet sites provide a sense of connection and social interactivity, these sites can create a false sense of security and anonymity online. For children, these sites can pose a threat as online predators use them as a portal for finding victims.

As part of National Internet Safety Month, Attorney General Dustin McDaniel today released online
safety tips for parents and their children engaged in social networking.

"Last week, I met with an Arkansas mother whose teen daughter was killed by a man police believe
lured the girl using a social networking site," McDaniel said. "As a parent, I'm horrified that someone would reach our vulnerable children in this way. As Attorney General, I want to do everything I can to make sure other parents don't face the nightmare that the mother I met is enduring."

Social networking sites, such as Facebook, Twitter, or Pinterest, have exploded in popularity among Americans in recent years. According to Facebook, over 845 million users log on to its site at least once a month. Over 425 million people use Facebook's mobile products.

Although social networking sites can be valuable resources to connect with friends and acquaintances online, it is important to remember to be careful when using them because the information you post online can be used to make you or your children a victim.

Safety Tips
• Be sure to set your privacy settings to the most secure setting available. Ensure that you're sharing information with only your friends, and not with the Internet at large.
• First and foremost, make a unique password for each social media site you use. If an unauthorized individual accesses your account, they can use it to send spam to other users, scam your friends and family, or use the information to scam you.
• If you do have your profile viewable by the public, do not post information that would let someone know that your house was empty or that you are home alone. Posting that you're leaving town for a few days could be an invitation for someone to break into your home. Likewise, if you have children who use these sites, make sure they are aware that they should never indicate online that they are home alone.
• Think carefully about what information you post online. An electronic record of what you say will likely be online forever, which might come back to haunt you in the future.
• Follow the "Front Page Rule": Don't post anything online that you wouldn't be comfortable seeing on the front page of your newspaper.
• Remember that employers, universities, and even attorneys often check Facebook and other social media sites for information that you've posted online.
Tips for parents
• Understand that if your child comes into contact with an online predator, it is not the child's fault. The child is the victim.
• Talk to your child about sexual victimization and the potential of online danger.
• Spend time with your children online. Have them teach you about the Internet.
• Keep the computer in a common room of the house, not in your child's bedroom.
• Utilize parental controls available from your service provider or use blocking software.
• Always maintain access to your child's online account and monitor email.
• Teach your children the responsible use of the online resources.
• Find out the computer safeguards being utilized at your child's school, the public library, and at the home of your child's friends.
• Never arrange a face-to-face meeting with someone they met online.
• Never automatically assume that what they are told online is the truth.

For more information about consumer-related issues, or to file a complaint, visit GotYourBackArkansas.org or call the Consumer Protection Division's hotline at (800) 482-8982.

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House to House: Personal photos may be distraction for home’s prospective buyers

The following article printed in the Arkansas Democrat-Gazette and numerous papers throughout Arkansas is the sole product and property of the Arkansas Realtors Association. The photo is by www.ARSportsPhoto.com

Using personal photos to decorate the walls and tables is common in homes. It certainly is in the Glover Bryant house. However, if I were trying to sell my home, those personal photos of my dogs, my kids, my parents — basically my life — may be a turnoff to potential homebuyers. Plus, if you think about it, people looking at my home are going to learn an awful lot about me, and I’m not so sure what I think about that.

As with any issue, opinions differ. My opinion is that the truth lies somewhere in the middle.

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House to House: Bees in residence cause danger to homeowners, neighbors

This week’s column was co-written by Little Rock Realtor Michelle Honea Dyer.

Last fall, neighbors alerted my friend Michelle that they were seeing bees on the far side of her home. They had small children playing in the area and wanted her to be aware so that she might have it investigated. Sure enough, there were lots of bees. Michelle called around and found a local pest control company that specialized in bees.

They came to her house and watched over several days and decided that they should try to “dust” them out. The company applied this dusting process in the late fall, hoping that it would remove them. Winter came and Michelle crossed her fingers that they had either moved on or found a new home. Nope.

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House to House: Now is good time for homeowners to inspect decks

Considering that my deck is nearing the age of 10 years, I was glad to receive a news release reminding me to check my deck for safety concerns that could lead to accidents and injuries. It’s a thought that never occurred to me and probably wouldn’t have until the damage was done. It’s also a great time to do it since we are heading into prime deck-using season and we’ll be serving more meals out there in the months to come.


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