The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s S&P/Case-Shiller release on February home prices:
REALTORS® report “interest rate” and “low inventory” as the major issues affecting transactions in March 2019.
The Silent Generation, buyers aged 73 to 93 years, made up the smallest share of buyers by age at only seven percent of all home buyers in 2018.
Foreign buyers purchased $4.8 billion of U.S. commercial real estate in 2018. The median value for a buyer-side transaction was $600,000, while the median value for a seller-side transaction was $1 million.
Older Boomers, buyers aged 64 to 72 years, made up 14 percent of all home buyers in 2018 again this year. Within this group, they had the third largest share of single female buyers at 20 percent.
At the national level, housing affordability is up from last month but down from a year ago. Mortgage rates were down from last month at 4.60 percent this February, and up 4.1 percent compared to 4.42 percent a year ago.
Based on NAR’s home affordability index, the Midwest has been the most affordable region to own a home, which is comprised of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, North Dakota, Nebraska, South Dakota and Wisconsin.
Younger Boomers, buyers aged 54 to 63 years, made up 18 percent of all home buyers in 2018, consistent with the previous year.
With mortgage rates on the decline and home prices appreciating at a slower pace, REALTORS® reported that homebuying traffic increased in February 2019 compared to one year ago.
What are existing-home sales, and why does the data matter?