Reuters tells MHProNews that “U.S. home resales declined to a six-month low in November after two straight months of strong increases, underscoring the uneven nature of the housing market recovery.”
Their information comes from a National Association of Realtors (NAR) report revealing that “existing home sales dropped 6.1 percent to an annual rate of 4.93 million units, the lowest level since May.”
In spite of these figures, the report pointed out that sales were up 2.1 percent from a year ago and that “November’s steep decline probably does not signal the start of a weakening trend.”
A bright spot is that with job gains broadening and wage growth starting to accelerate, first-time buyers are ”wading back into the market.” The report said that they accounted for 31 percent of transactions last month, the biggest share since October 2012. That was up from 29 percent in October. Economists and real estate agents say a share of 40 percent to 45 percent is required for a strong housing recovery.
However, investors, who have supported the market, continued to withdraw in November, accounting for only 15 percent of transactions last month, down from 19 percent in November 2013. The inventory of unsold homes on the market fell 6.7 percent from a year ago to 2.09 million.
Economists say one reason for this is there is insufficient equity and uncertainty about the economy’s strength, influencing potential sellers to stay in their homes.
The shrinking supply lifted the median home price 5.0 percent from a year ago. The pace, however, has slowed from the double-digit growth seen for much of 2013.
So, these figures give an analysis of real estate sales in general throughout the country. However, there are always exceptions to the norm, and Texas is one of those. Some cities in Texas are experiencing unprecedented sales, and the Dallas area is among them.
A major reason for that is that Toyota is moving its headquarters along with 4,500 employees from California to Plano in Collin County, the city and county adjoining Dallas County to the north. Toyota will build a complex in the Legacy Business Park, an area first developed by Ross Perot and housing EDS when Perot still owned it. Toyota employees from New York and Kentucky will also be moving in.
Although transferring Toyota employees will arrive in “waves,” some are already out looking for homes. In areas near the site of the new headquarters, homes have been reported to sell in a week. Prices are going up, too, as real estate in California is usually more expensive than Texas, which means that transferring Californians are willing to pay more.
Another area attracting a lot of attention is Austin, Texas, the state capital and home of many high-tech companies. It is presently the fastest growing city in the country. Real estate sales are brisk there, and prices are escalating.
Travis County, of which Austin is the county seat, is deemed to be the wealthiest county not on the east coast. CNN Money in a story entitled, “Why Everybody Is Moving to Texas” said that “jobs are the main driver in Austin, where population rose by 2.6 percent between 2012 and 2013. That’s nearly four times faster growth than the United States as a whole.” Moody’s Analytics projects job growth in Austin to average 4 percent a year through 2015.
In addition to Austin and Dallas, other Texas cities including Fort Worth, Houston, and San Antonio are growing in population, accompanied bya rising demand for resale housing.
What does the growing demand for housing mean for manufactured home builders, retailers and communities and their suppliers? With Realtors ® at times struggling for inventory, will manufactured housing professionals learn to reach out and connect with real estate brokers, as is showcased in the video report linked here? ##
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(Photo Credit: greenwichtime.com)
