Existing Home Sales Hit 9 Year High (5.53 million units last month)

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U.S. home resales rose in May to a more than nine-year high as improving supply increased choice for buyers, suggesting the economy remains on solid footing despite a sharp slowdown in job growth last month.

The National Association of Realtors said on Wednesday existing home sales increased 1.8 percent to an annual rate of 5.53 million units last month, the highest level since February 2007.

April’s sales pace was revised down to 5.43 million units from the previously reported 5.45 million units. Economists polled by Reuters had forecast sales rising 1.1 percent to a 5.54 million-unit pace in May.

Sales were up 4.5 percent from a year ago.

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The strong home resales added to retail sales data in painting an upbeat picture of the economy. That should help allay fears about the economic outlook which were stoked by last month’s paltry job gains.

Existing home sales surged 4.1 percent in the Northeast and climbed 4.6 percent in the South. Sales in the West, which has seen a strong increase in house prices amid tight inventories, jumped 5.4 percent.

In the Midwest, sales tumbled 6.5 percent last month. The decline, however, followed recent hefty gains.

The number of unsold homes on the market in May rose 1.4 percent from April to 2.15 million units. Supply was, however, down 5.7 percent from a year ago.

At May’s sales pace, it would take 4.7 months to clear the stock of houses on the market, unchanged from April. A six-month supply is viewed as a healthy balance between supply and demand.

With inventory still tight, the median house price soared 4.7 percent from a year ago to a record $239,700 last month.

(http://www.cnbc.com/2016/06/22/existing-home-sales-for-may-2016-released-by-the-national-association-of-realtors.html)

 

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5 Worst Housing Markets for First Time Home Buyers (New Report)

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New homebuyers are far better off purchasing a home in many towns in the middle of the country, and far worse off in many cities in California, according to a new report released this week.

The study examined data on housing affordability for people living in the area (as measured by the ratio of median household income over five years to ownership costs over five years, including closing costs, mortgage payments, insurance and taxes), ease of getting a mortgage and the stability of the housing markets in cities with populations of 300,000 or more.

Oklahoma City tops the list, thanks largely to how affordable homesare in the area for those who work there (the median home is only about $125,000, according to Zillow) and how stable the housing market is. Tulsa, Okla. is second on the list; even though it has fewer mortgage lenders than Oklahoma City, it is even more affordable for residents with the median home costing just over $100,000.

Indianapolis, Pittsburgh and Houston round out the top five. (Added bonus: all of these cities have unemployment rates below the national average.)

Meanwhile, a number of cities in California are the worst for first-time homebuyers, thanks in part to the fact that they are unaffordable for many in the area and the markets tend to be volatile. Indeed, the seven worst cities on this list — Los Angeles, Santa Ana, Anaheim, Riverside, Stockton, Long Beach and Oakland — are all in California.

(http://www.marketwatch.com/story/5-worst-housing-markets-for-first-time-buyers-2016-03-16?dist=realestate)

 

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Blackstone Profits $200 Million On Latest Development Deal (We break down all the numbers here)

Blackstone Group LP agreed to sell the leasehold on the Hyatt Regency Waikiki Beach Resort and Spa to Mirae Asset Global Investments Co. for $780 million, garnering a profit of more than $200 million in three years, according to a person with knowledge of the pending transaction.

 

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 The 1,230-room property on the Hawaiian island of Oahu is the latest in a series of overseas real estate purchases by closely held Mirae. Last year, the South Korean company bought the Fairmont Orchid hotel on the big island of Hawaii and the Fairmont San Francisco, according to research firm Real Capital Analytics Inc.

shutterstock_71006383The Hyatt Regency Waikiki Beach would be the biggest single-property hotel transaction ever in Hawaii, according to Real Capital. The resort has been running at about 90 percent occupancy this year, with average room rates topping $250 a night, said the person with knowledge of the deal, who asked not to be identified because the sale is private.

Blackstone, based in New York, bought the Hyatt Regency Waikiki Beach for about $450 million in 2013 and spent about $100 million to upgrade the rooms and retail at the property. The firm bought the hotel from the Whitehall real estate funds unit of Goldman Sachs Group Inc., with a small stake sold by Hyatt Hotels Corp. Blackstone plans to return the proceeds from the sale to investors rather than recycling it into new hotel purchases, the person said.

 

(http://www.bloomberg.com/news/articles/2016-06-08/blackstone-said-to-have-over-200-million-profit-in-hawaii-deal)

 

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Homeownership More Profitable for Men Than Women (New Report)

RealtyTrac, released an analysis showing homes owned by single men on average are valued 10 percent more and have appreciated $10,112 (16 percent) more since purchase than homes owned by single women. The analysis covered more than 2.1 million single family homes nationwide owned by either single men (1,139,493) or single women (1,011,572) based on public record tax assessor data.

 

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The average estimated current market value of homes owned by single men was $255,226 — 10 percent higher than the average current market value of homes owned by single women: $229,094.

Homes owned by single men have gained an average of $63,921 since purchase, a 33 percent return on purchase price. That was $10,112 (16 percent) more than the average $53,809 gain since purchase for homes owned by single women, a 31 percent return on purchase price.

(http://www.realtytrac.com/news/home-prices-and-sales/realtytrac-housing-gender-gap-analysis/)

 

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