Homeownership Rate Down 0.4 Percent in Q4

According to data released by the Department of Commerce’s Census Bureau, the homeownership rate for the fourth quarter of 2010 was 66.5 percent, down from 66.9 percent in the third quarter. Homeownership peaked at 69 percent in 2004, at the height of the housing boom. Despite the drop, recent sales increases point to a possible rebound in the first quarter of 2011. Also in the report, the homeowner vacancy rate was 2.7 percent, unchanged from a year earlier and 0.2 percent higher than the previous quarter. More here and here.

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Pending Sales Up For Fifth Time in Six Months

For the fifth time in the past six months, the National Association of Realtors’ Pending Home Sales Index improved, increasing 2.0 percent in December. The index, which is based on signed contracts rather than closings, is an indicator of where existing-home sales will be in coming months. Lawrence Yun, NAR’s chief economist, said the latest pending-sales gain suggests activity is reaching a sustainable, healthy volume and he expects the trend to continue due to excellent housing affordability conditions. More here and here.

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New Home Sales Soar, Reach 8-Month High

Sales of new single-family homes rose 17.5 percent in December, according to data released by the U.S. Census Bureau and the Department of Housing and Urban Development. The surge brought sales to their highest level in eight months. The median sales price for a new house also increased, rising from $215,500 in November to $241,500 in December. At the current sales pace, the number of new homes on the market represents a 6.9-month supply, down from 8.2-months. More here and here.

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Home Prices Down 1.6 Percent Year Over Year

The S&P/Case-Shiller Home Price Indices through November 2010, shows home prices down 1.6 percent from a year before and 1.0 percent month-over-month. Of the 20 major-metropolitan areas tracked, Washington D.C., San Diego, San Francisco, and Los Angeles were the only cities to post year-over-year price gains. Pat Newport of IHS Global Insight said, despite the decreases, there are reasons for optimism, including rising home sales numbers and the smaller declines calculated by the Federal Housing Finance Agency, which tracks the entire market rather than the 20 cities surveyed by Case-Shiller. More here.

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Distressed Property Sales, First-Time Buyer Activity Jump in December

According to a Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, distressed property sales spiked in December after dipping last fall due to foreclosure moratoriums. The Housing Pulse Distressed Property Index, which measures the share of total home sales involving distressed properties, rose to 47.2 percent from 44.5 percent in November. The survey also shows an increase in first-time homebuyer activity. First-time buyers accounted for 37.7 percent of all transactions in December, up from 34.4 percent. Thomas Popik, research director for Campbell Surveys, said the combination of increased property supply and growing homebuyer demand caused a blow-out month for home sales. More here and here.

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