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Pending home sales index falls for first time in months, performs unequally across regions
Although pending homes (contracts signed) increased for the last five months, in June, they fell slightly (1.8 percent), remaining near May’s level. The Pending Home Sales Index (PHSI) is an indicator put out by the National Association of Realtors (NAR) who is quick to point out that May’s level was the highest in over nine years, so it is our assessment that there is no need to panic or get cynical about the market.
Further, the West and Northeast actually saw gains for the month, but were offset by larger declines in the Midwest and South. The PHSI is now 8.2 percent above a year ago, also making June the third highest reading of 2015.
NAR’s Chief Economist explains
Dr. Lawrence Yun, NAR Chief Economist, says although pending sales decreased in June, the overall trend in recent months supports a solid pace of home sales this summer. “Competition for existing houses on the market remained stiff last month, as low inventories in many markets reduced choices and pushed prices above some buyers’ comfort level.”
“The demand is there for more sales, but the determining factor will be whether or not some of these buyers decide to hold off even longer until supply improves and price growth slows,” added Dr. Yun.
He also notes that existing-home sales are up considerably from last year, despite the share of first-time buyers improving only modestly, giving credit for the boost to pent-up sellers realizing their equity gains from recent years.
“Strong price appreciation and an improving economy is finally giving some homeowners the incentive and financial capability to sell and trade up or down,” adds Yun. “Unfortunately, because nearly all of these sellers are likely buying another home, there isn’t a net increase in inventory. A combination of homebuilders ramping up construction and even more homeowners listing their properties on the market is needed to tame price growth and give all buyers more options.”
Regional performance varied wildly
The PHSI in the Northeast inched 0.4 percent to 94.3 in June, and is now 12.0 percent above a year ago. In the Midwest the index declined 3.0 percent to 108.1 in June, but is still 5.0 percent above June 2014.
Pending home sales in the South also decreased 3.0 percent to an index of 123.5 in June but are still 7.8 percent above last June. The index in the West increased 0.5 percent in June to 104.4, and is now 10.4 percent above a year ago.
The national median existing-home price for all housing types in 2015 is expected to increase around 6.5 percent to $221,900, which would match the record high set in 2006. Total existing-home sales this year are forecast to increase 6.6 percent to around 5.27 million, about 25 percent below the prior peak set in 2005 (7.08 million).
Why this time of year is tough to gauge
According to realtor.com Chief Economist, Dr. Jonathan Smoke, “This is a tricky time of year to assess housing trends as the housing market is very seasonal. The seasonal trend varies by market so a general interpretation of these numbers should be treated with skepticism.”
He adds, “The underlying data was a mixed bag: the Northeast and West had slight increases on the seasonally adjusted index while the South and Midwest experienced declines. Even more confusing is the fact that the non-seasonally adjusted rate actually increased 2.6 percent in June over May, and only the Northeast and West had declines in the nonseasonal index.”
Dr. Smoke concludes by noting, “Regardless of what reading you prefer, the level of sales remains high. You have to go back to 2006 to see better readings on both indices.”
Blog post via The Real Daily
MRED Chicagoland Report for June, 2015
The curtain closes and the first half of 2015 is a finished act. Monthly market analysis helps nudge the real estate story forward for a final bow. The orchestra (consumers) and conductor (the REALTOR®) are thanked. Metropolitan operas, er, markets across the country continue to improve and further perform at peaks not seen in years. Bad memories from that one lousy show known as the Great Recession are pushed even further into the past.
New Listings in Chicagoland were up 4.9 percent for detached homes and 5.5 percent for attached properties. Listings Under Contract increased 22.2 percent for detached homes and 22.0 percent for attached properties.
The Median Sales Price was up 4.9 percent to $235,950 for detached homes and 8.3 percent to $195,000 for attached properties. Months Supply of Inventory decreased 13.3 percent for detached units and 12.0 percent for attached units.
Having six months of 2015 data in the books is great, but it is still just intermission at this halfway point of the year. Forecasting market trends can be as dicey as the weather, but with interest rates managing to remain low into the summer months, the outlook is promising, even if rates go up later in the year. Metrics like inventory and percent of list price received at sale are two of the better understudies to watch this year.
MRED real estate professionals can log into MREDLLC.com and click on the Statistics tab to get the latest Lender Mediated and Monthly Market Indicators Reports. You can also click on the Local Market Updates choice under the Statistics tab and use our Interactive Market Analytics map for the latest local market metrics.
Any questions? Please contact MRED’s Help Desk at 630-955-2755 or help.desk@MREDLLC.com.
MRED Chicagoland Report for March, 2015
MRED Chicagoland Report for March, 2015.
All expectations in 2015 are for a healthy and energetic selling season. National stories have been highlighting an increase in new construction sales and pending sales, but national stories are not always readily applied to the local scene. All the same, if ever there was a year to list or purchase a home, wider economic factors seem to indicate that this is the one.
New Listings in Chicagoland were up 19.3 percent for detached homes and 9.4 percent for attached properties. Listings Under Contract increased 34.5 percent for detached homes and 21.6 percent for attached properties.
The Median Sales Price was up 13.1 percent to $198,000 for detached homes and 16.2 percent to $180,100 for attached properties. Months Supply of Inventory decreased 5.4 percent for detached units and 7.6 percent for attached units.
On average, more people are employed and making more money than they were at this time last year. The jobs picture, as a whole, looks promising. Employment drives home-buying activity, so it is ever critical to watch labor statistics as a key indicator for the residential real estate market. Coupled with the mostly positive jobs picture, it is widely expected that mortgage rates will remain as they are for at least the first six months of the year.
MRED real estate professionals can log into MREDLLC.com and click on the Statistics tab to get the latest Lender Mediated and Monthly Market Indicators Reports. You can also click on the Local Market Updates choice under the Statistics tab and use our Interactive Market Analytics map for the latest local market metrics.
Any questions? Please contact MRED’s Help Desk at 630-955-2755 or help.desk@MREDLLC.com.
MRED and Rate Plug Help in Horse Race to Sell More Homes
Chicagoland MLS Giant Introduces “FHA Eligibility Indicators” to its MLS System
LISLE, ILLINOIS (May 1, 2015) – Midwest Real Estate Data (MRED), Chicagoland’s multiple listing service (MLS), announced it has introduced a new tool to help its real estate professionals sell more properties and provide greater service to the consumer.
When FHA financing is available to buyers of a property, there are lower down payment and easier credit requirements available. MRED has collaborated with RatePlug and FHA Pros to add FHA eligibility indicators to all condos and townhomes in connectMLS. MRED customers can now simply look for “traffic light” indicators on each condo and townhome listing in the MLS to see if the property is FHA approved (green light), conditionally approved (yellow light) or not approved (red light). There is also handy information regarding obtaining FHA approval for those properties that do not have it.
“FHA PROs, in partnership with RatePlug, is excited to provide to MRED, a leading MLS innovator, real time condominium data that relates to FHA approval, eligibility, and assumability information by specific property address,” said Christopher Gardner, CEO of FHA PROs. “This technology will assist agents who are selling condominiums to be much more efficient and accurate when marketing the property, as well as providing valuable information to their homebuyers regarding potential specialty financing options.”
“We’re excited to introduce another way for our real estate professionals to help their customers find their dream home,” said Rebecca Jensen, MRED President/Chief Executive Officer. “As we have done with our other services, FHA Eligibility Indicators significantly benefit the consumer as well as MRED’s Brokers. This adds yet another tool to MRED customers’ toolboxes.”
The FHA Eligibility Indicators enhance the value of the existing RatePlug Program, which allows for the display of real-time housing payment information within MLS property listings. This helps real estate professionals and homebuyers effectively search for affordable properties. The system uses live lending data from lenders who are referred by and work with participating Brokers.
Currently, there are over 14,000 MRED members using RatePlug. The program provides reliable financing information to homebuyers at the very beginning of the real estate buying process so that sound, knowledgeable decisions are made about housing affordability and financing.
About MRED
Midwest Real Estate Data (MRED) is the real estate data aggregator and distributor providing the Chicagoland multiple listing service (MLS) to nearly 40,000 brokers and appraisers and 8,000 offices. MRED serves Chicago and the surrounding “collar” counties and provides property information encompassing northern Illinois, southern Wisconsin and northwest Indiana. MRED delivers over twenty products and services to its customers, complementing connectMLS™, the top-rated MLS system in the country for two years running according to the WAV Group MLS Technology Survey. MRED is the 2013 Inman News Most Innovative MLS/Real Estate Trade Association, and for four consecutive years the MRED Help Desk has been identified as one of the best small business centers in the United States and Canada by BenchmarkPortal. For more information please visit MREDLLC.com.
Analysis Indicates Chicago Homes that Disclose Energy Costs Have a Higher Close Rate
Energy cost disclosure gains momentum as more real estate offices recognize the value of energy use data for all involved in the real estate transaction. A new disclosure tool has helped all Baird & Warner city offices and Chicago-based Coldwell Banker Residential Brokerage offices secure their place as leaders in using this latest technology.
LISLE, ILLINOIS (April 20, 2015) – Chicago single family real estate listings that disclose energy costs have a higher close rate and spend less time on the market than comparable homes that do not disclose this information, according to an analysis by Elevate Energy.
Elevate Energy’s findings indicate that homes that disclosed energy costs at the time of listing sold at a higher percentage of the asking price. On average, an attached home (e.g., condominium or townhome) that was listed for $352,000 would have sold for $4,576 more if the listing had disclosed the home’s energy costs. In addition, attached homes that disclosed energy costs spent about 25 fewer days on the market compared to homes that did not disclose energy costs. Detached homes that disclosed energy costs spent eight fewer days on the market.
“Elevate Energy has done an outstanding job of taking a cumbersome task – locating accurate information about a home’s energy usage – and simplifying it to create a wonderful experience for our broker associates and their clients,” said Tripti Kasal, vice president of sales for Baird & Warner, one of the first real estate brokerages to institutionalize electronic disclosure. “Baird & Warner is committed to providing the most innovative tools to better facilitate our transactions – a partnership with Elevate Energy was the right thing for us.”
In 2013, the City of Chicago became the first municipality in the country to allow direct disclosure of residential energy costs (gas and electric) via a multiple listing service (MLS) when a single family or two- to four-unit home was listed for sale. The achievement was the result of a unique partnership between Midwest Real Estate Data (MRED), Chicagoland’s multiple listing service (MLS), the City of Chicago Office of the Mayor, and Elevate Energy. In addition, an “Energy eCompliance” tool was launched to help listing agents in Chicago provide buyer agents and home purchasers with immediate online access to an energy cost disclosure (ECD) report for a property. Using the tool also helps agents comply with the specific time requirements of the updated energy cost disclosure ordinance.
The analysis from Elevate Energy bolsters earlier indications that energy cost disclosure is meaningful and beneficial. In addition to higher close rates and quicker sales, disclosure facilitates more informed decisions for all involved in the real estate transaction and helps demonstrate the value of energy efficiency in the marketplace.
“Energy costs are such a significant issue to home buyers it is a no-brainer for MRED to assist its real estate professionals in providing the most accurate and timely information,” said MRED President/Chief Executive Officer Rebecca Jensen. “At the same time, we are enabling our listing brokers to comply with the City of Chicago ordinance. A win for everybody, especially the consumer, and we are pleased to be a nationwide leader in this arena.”
Energy cost disclosure is gaining momentum in Chicago as an increasing number of brokerages utilize the Energy eCompliance tool and comply with the ordinance. MRED, the City of Chicago, and Elevate Energy have launched an ongoing Chicago Energy eCompliance Brokerage Challenge to help real estate offices secure their place as leaders in using this latest technology.
More than 20 offices have participated in the challenge so far, including all Baird & Warner city offices, Chicago-based Coldwell Banker Residential Brokerage offices, the MG Group at BERKSHIRE HATHAWAY HomeServices KoenigRubloff Realty Group, Century 21 Affiliated Hyde Park, and The Gramata Realty Group with @properties. A complete listing of all participating offices is available on the Elevate Energy website.
All Chicagoland real estate offices, agents, and sales teams are encouraged to participate in the Chicago Energy eCompliance Brokerage Challenge by completing a checklist:
- Commitment to use digital energy cost disclosure fields offered by MRED on all eligible Chicago property listings.
- Office staff member oversees training activities on the Energy eCompliance tool.
- Using energy cost disclosure fields provided by MRED becomes part of the brokerage’s listing process. A “how to” primer for real estate professionals is available.
To participate, brokerages should complete the three tasks and return a completed form to pamela.brookstein@elevateenergy.org.
About Elevate Energy
Elevate Energy’s mission is to deliver smarter energy use for all. Elevate designs and implements efficiency programs that lower costs, protect the environment, and ensure the benefits of energy efficiency reach those who need them most. For more information, please visit http://www.elevateenergy.org.
About MRED
Midwest Real Estate Data (MRED) is the real estate data aggregator and distributor providing the Chicagoland multiple listing service (MLS) to nearly 40,000 brokers and appraisers and 8,000 offices. MRED serves Chicago and the surrounding “collar” counties and provides property information encompassing northern Illinois, southern Wisconsin and northwest Indiana. MRED delivers over twenty products and services to its customers, complementing connectMLS™, the top-rated MLS system in the country for two years running according to the WAV Group MLS Technology Survey. MRED is the 2013 Inman News Most Innovative MLS/Real Estate Trade Association, and for four consecutive years the MRED Help Desk has been identified as one of the best small business centers in the United States and Canada by BenchmarkPortal. For more information please visit MREDLLC.com.
MRED Continues to Meet the Standards
Chicagoland MLS Giant Now Certified on latest version of RESO Data Dictionary
LISLE, ILLINOIS (APRIL 13, 2015) – Midwest Real Estate Data (MRED), Chicagoland’s multiple listing service (MLS), has announced that the Real Estate Standards Organization (RESO) has certified MRED for RESO Data Dictionary 1.3.
RESO is an organization that develops, adopts and implements open and accepted data standards and processes across all real estate transactions and provide an environment for the development and implementation of data standards and processes. RESO’s Data Dictionary serves as the real estate industry’s “Rosetta Stone” for real estate data. While hundreds of MLSs and other source providers gather data, the Data Dictionary ensures that each system “speaks” the same language.
As MLSs across the industry adopt RESO standards, the industry will move towards an environment where real estate software becomes plug-and-play. Realtors® will be able to purchase off the shelf software and it will plug into any MLS that has implemented RESO standards.
This is quite different than the state of the industry today, where it is extremely hard for new software to be used from one market to the next. It will be easier for real estate professionals to use MLS data in the products that they choose. They will have better options and the data that flows through their systems will be more accurate because the Data Dictionary negates the need for translation from one system to the next. RESO standards give more options and control to Realtors®.
MRED’s commitment to RESO is evidenced by being its first Charter Member and its continued participation in and support of data standardization efforts. These efforts are important to MRED customers, the real estate industry in general, and the consumer. MRED and other organizations that maintain these standards can more easily exchange information without degrading or losing data, resulting in more accuracy and less cost. New applications and services are developed because there is a wider audience to offer them to.
dynaConnections, MRED’s MLS vendor, also has a strong commitment to RESO. As another Charter Member of the organization, dynaConnections dedicates significant resources and time to remain on the front line of RESO initiatives. Technologists from both MRED and dynaConnections have worked closely to attain not only the Data Dictionary 1.3 certification but also to maintain MRED’s Real Estate Transaction Standard (RETS) Server certification.
“We’re proud supporters of RESO and firm believers in the long-term power in its mission,” said dynaConnections CEO, Tim Ford. “The organization is making great strides towards bettering the industry, and we’re happy to contribute in any way possible”.
“I have a deep commitment to RESO, having served as its Board Chair for four years,” said MRED President and CEO Rebecca Jensen. “RESO is important to me and to MRED. We will continue to support the setting of standards, and the providing of data and tools needed to meet the demands of real estate professionals and consumers alike.”
About MRED
Midwest Real Estate Data (MRED) is the real estate data aggregator and distributor providing the Chicagoland multiple listing service (MLS) to nearly 40,000 brokers and appraisers and 8,000 offices. MRED serves Chicago and the surrounding “collar” counties and provides property information encompassing northern Illinois, southern Wisconsin and northwest Indiana. MRED delivers over twenty products and services to its customers, complementing connectMLS™, the top-rated MLS system in the country for two years running according to the WAV Group MLS Technology Survey. MRED is the 2013 Inman News Most Innovative MLS/Real Estate Trade Association, and for four consecutive years the MRED Help Desk has been identified as one of the best small business centers in the United States and Canada by BenchmarkPortal. For more information please visit MREDLLC.com.
About dynaConnections Corporation and connectMLS™
dynaConnections Corporation is an Austin-based real estate software company that is renowned for constant innovation and dedication to service. Its flagship product, connectMLS™, is a patent-pending, one-of-a-kind multiple listing service solution that is second to none with millisecond response time and ease of access on all devices and web browsers. Rich embedded features and seamless integrations allow connectMLS to be an intuitive, all-in-one real estate transaction manager for both agents and clients. For over thirteen years, dynaConnections and the connectMLS solution have been continually exceeding all standards of what the real estate industry expects from an MLS provider. For more information, visit: http://www.dynaconnections.com.
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dynaConnections and connectMLS™ are registered trademarks of dynaConnections Corporation. All other company and product names may be trademarks of the respective companies with which they are associated.
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