Low inventory pushes median home price up 5.7% in Q1

WASHINGTON – May 14, 2018 – Inventory levels hovering at all-time lows weighed down home sales and fueled faster price appreciation during the first three months of the year, according to the latest quarterly report by the National Association of Realtors® (NAR).

The national median existing single-family home price in the first quarter was $245,500, which is up 5.7 percent from the first quarter of 2017 ($232,200). The median sales price during the fourth quarter of 2017 climbed 5.3 percent from the fourth quarter of 2016.

Single-family home prices last quarter increased in 91 percent of measured markets – 162 out of 178 metropolitan statistical areas (MSAs) – in a year-to-year comparison. In addition, 30 percent of metro areas had a price increase of 10 percent or greater year-to year, and 15 percent had a double-digit price increase quarter-to-quarter.

“The worsening inventory crunch through the first three months of the year inflicted even more upward pressure on home prices in a majority of markets,” says Lawrence Yun, NAR chief economist. “Following the same trend over the last couple of years, a strengthening job market and income gains are not being met by meaningful sales gains because of unrelenting supply and affordability headwinds.”

Consumers are getting stressed, says Yun, “Realtors in areas with strong job markets report that consumer frustration is rising. Home shoppers are increasingly struggling to find an affordable property to buy, and the prevalence of multiple bids is pushing prices further out of reach.”

Total existing-home sales, including single family and condos, decreased 1.5 percent to a seasonally adjusted annual rate of 5.51 million in the first quarter from 5.59 million in the fourth quarter of 2017. Year-to-year, they’re 1.7 percent lower.

At the end of the first quarter, 1.67 million existing homes were available for sale – a 7.2 percent drop year-to-year – and the average supply was 3.5 months, a year-to-year drop from 3.7 months in the first quarter of 2017.

On the bright side, the national family median income rose to $74,7794 in the first quarter, but overall affordability decreased from a year ago because of rising mortgage rates and home prices. To purchase a single-family home at the national median price, a buyer making a five percent down payment would need an income of $55,732; a 10 percent down payment would require an income of $52,779; and $46,932 would be needed for a 20 percent down payment.

“Prospective buyers in many markets are realizing that buying a home is becoming more expensive in 2018,” says Yun. “Rapid price gains and the quick hike in mortgage rates are essentially eliminating any meaningful gains buyers may be seeing from the combination of improving wage growth and larger paychecks following this year’s tax cuts.”

Yun offers his solution: “It’s simple: Homebuilders need to start constructing more single-family homes and condominiums to overcome the rampant supply shortages that are hampering affordability.”

The five most expensive housing markets in the first quarter were the San Jose, California metro area, where the median existing single-family price was $1,373,000; San Francisco-Oakland-Hayward, California, $917,000; Anaheim-Santa Ana-Irvine, California, $810,000; urban Honolulu, $775,500; and San Diego-Carlsbad, $610,000.

The five lowest-cost metro areas in the first quarter were Decatur, Illinois, $73,000; Cumberland, Maryland, $86,200; Youngstown-Warren-Boardman, Ohio, $91,300; Elmira, New York, $100,800; and Binghamton, New York; $103,000.

Metro area condominium and cooperative prices – covering changes in 61 metro areas – showed the national median existing-condo price was $231,700 in the first quarter, up 5.9 percent from the first quarter of 2017 ($218,800). Eighty-five percent of metro areas showed gains in their median condo price from a year ago.

Regional breakdown
Total existing-home sales in the Northeast slipped 8.5 percent in the first quarter and are 8.1 percent below the first quarter of 2017. The median existing single-family home price in the Northeast was $267,400 in the first quarter, up 4.6 percent from a year ago.

In the Midwest, existing-home sales fell 6.9 percent in the first quarter and are 1.8 percent below a year ago. The median existing single-family home price in the Midwest grew 5.9 percent to $187,100 in the first quarter from the same quarter a year ago.

Existing-home sales in the South increased 3.7 percent in the first quarter and are 0.7 percent higher than the first quarter of 2017. The median existing single-family home price in the South was $220,400 in the first quarter, 5.5 percent above a year earlier.

In the West, existing-home sales in the first quarter declined 1.1 percent and are 2.2 percent below a year ago. The median existing single-family home price in the West increased 8.2 percent to $371,300 in the first quarter from the first quarter of 2017.

© 2018 Florida Realtors®

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Feb. home prices soar 6.3% in a fierce competition to buy

WASHINGTON (AP) – April 24, 2018 – U.S. home prices jumped in February as buyers compete fiercely over a dwindling number of properties for sale.

The S&P CoreLogic Case-Shiller national home price index released Tuesday jumped 6.3 percent in February from a year earlier, matching December’s increase. That jump was the largest in nearly three years.

Steady job gains and rising numbers of millennials moving out on their own has intensified the competition for homes. February’s price gain far outpaces average increases in wages or inflation.

Americans are becoming reluctant to sell their homes as mortgage rates rise, preferring to renovate instead. Others are holding onto their homes because they see few other options available. That’s kept supply tight: The number of homes for sale fell 7.2 percent in March from a year earlier to just 1.67 million.

Sales of existing homes ticked up in March but actually declined slightly from a year earlier as the housing shortage constrained sales.

Homebuyers are getting increasingly aggressive, snapping up homes an average of 30 days after they are listed in March, down from 34 days a year earlier.

“Competition is fierce, offer windows are short and tensions will inevitably run high for many buyers as the spring shopping season unfolds,” Svenja Gudell, chief economist at real estate data website Zillow, said.

There are signs that the supply crunch could ease later this year, as listings have picked up in recent months, only to be quickly sold. And developers are breaking ground on more homes, lifting single-family home construction 5.2 percent in March compared with a year earlier.

Seattle, Las Vegas and San Francisco remain the nation’s top real estate hot spots, with home prices jumping 12.7 percent in Seattle, 11.6 percent in Las Vegas and 10.1 percent in San Francisco.

Strong job gains in some cities, which hint at an influx of new residents, are pushing up home prices, Standard & Poor’s said. Seattle reported the biggest increase in employment and had the largest home price gain. Chicago ranked 19th out of the 20 cities tracked in both home price increases and employment. Cleveland came in at 18th place in home prices and 20th in employment.

But in San Francisco and Los Angeles, home prices are rising much faster than their job gains would suggest, a sign that regulatory limits on homebuilding and limited land availability are pushing prices even higher.

NAR: U.S. existing-home sales climb 1.1% in March

WASHINGTON – April 23, 2018 – Existing-home sales grew for the second consecutive month in March, but lagging inventory levels and affordability constraints kept sales activity below year-ago levels, according to the National Association of Realtors® (NAR).

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – rose 1.1 percent to a seasonally adjusted annual rate of 5.60 million in March from 5.54 million in February. Despite last month’s increase, however, sales were still 1.2 percent below a year ago.

“Robust gains last month in the Northeast and Midwest – a reversal from the weather-impacted declines seen in February – helped overall sales activity rise to its strongest pace since last November at 5.72 million,” says Lawrence Yun, NAR chief economist. “The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year-ago levels because supply is woefully low and home prices keep climbing above what some would-be buyers can afford.”

The median existing-home price for all housing types in March was $250,400, up 5.8 percent from March 2017 ($236,600). March’s price increase marks the 73rd straight month of year-over-year gains.

“Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets – especially those out West,” says Yun.

Total housing inventory at the end of March climbed 5.7 percent to 1.67 million existing homes available for sale, but that’s still 7.2 percent lower than a year ago (1.80 million) and has fallen year-over-year for 34 consecutive months.

Unsold inventory is at a 3.6-month supply at the current sales pace (3.8 months a year ago).

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased for the sixth straight month to 4.44 percent in March (highest since 4.46 percent in December 2013) and up from 4.33 percent in February. The average commitment rate for all of 2017 was 3.99 percent.

Properties typically stayed on the market for 30 days in March, which is down from 37 days in February and 34 days a year ago. Fifty percent of homes sold in March were on the market for less than a month.

“Realtors throughout the country are seeing the seasonal ramp-up in buyer demand this spring but without the commensurate increase in new listings coming onto the market,” says Yun. “As a result, competition is swift and homes are going under contract in roughly a month, which is four days faster than last year and a remarkable 17 days faster than March 2016.”

First-time buyers made up 30 percent of sales in March – up from 29 percent last month but down from 32 percent a year ago.

NAR President Elizabeth Mendenhall says the extremely tight inventory in the entry-level segment of the market should greatly benefit homeowners looking to trade up this spring.

“First-time buyers continue to make up an underperforming share of the market because there are simply not enough homes for sale in their price range,” she says. “Supply conditions improve in higher-up price brackets, which means those trading up should see considerable interest in their home, as well as more listings to choose from during their own search.”

All-cash sales were 20 percent of transactions in March, which is down from 24 percent in February and 23 percent a year ago. Individual investors, who account for many cash sales, purchased 15 percent of homes in March, which is unchanged from February and down from 18 percent a year ago.

Distressed sales – foreclosures and short sales – were 4 percent of sales in March, unchanged from February and down from 6 percent a year ago. Three percent of March sales were foreclosures and 1 percent were short sales.

Single-family and condo/co-op sales
Single-family home sales rose inched forward (0.6 percent) to a seasonally adjusted annual rate of 4.99 million in March from 4.96 million in February, but they’re 1.0 percent below the 5.04 million sales pace a year ago. The median existing single-family home price was $252,100 in March, up 5.9 percent from March 2017.

Existing condominium and co-op sales increased 5.2 percent to a seasonally adjusted annual rate of 610,000 units in March, but they’re 3.2 percent below a year ago. The median existing condo price was $236,100 in March, which is 4.8 percent above a year ago.

Regional breakdown
March existing-home sales in the Northeast jumped 6.3 percent to an annual rate of 680,000, but they’re 9.3 percent below a year ago. The median price in the Northeast was $270,600, which is 3.3 percent above March 2017.

In the Midwest, existing-home sales increased 5.7 percent to an annual rate of 1.29 million in March, but they’re still 1.5 percent below a year ago. The median price in the Midwest was $192,200, up 5.1 percent from a year ago.

Existing-home sales in the South decreased 0.4 percent to an annual rate of 2.40 million in March, and they’re 0.4 percent above a year ago. The median price in the South was $222,400, up 5.7 percent from a year ago.

Existing-home sales in the West declined 3.1 percent to an annual rate of 1.23 million in March, but are still 0.8 percent above a year ago. The median price in the West was $377,100, up 7.9 percent from March 2017.

© 2018 Florida Realtors®

Fla. building permits rose 20.8% year-to-year

WASHINGTON – March 23, 2018 – Single-family permits – a gauge of future construction – jumped 15 percent on a year-over-year basis in the first month of 2018, according to released U.S. Census Bureau data.

From January 2017 to January 2018, 32 states and the District of Columbia posted growth in single-family permits, and 20 states saw an uptick above 15 percent. However, 18 states posted a decline.

In Florida, permits rose 20.8 percent year-to-year – the highest rate in the U.S. for any state east of South Dakota. However, some states saw permit increases higher than 50 percent, including California, Alaska and Colorado, with Idaho topping the charts with the highest growth rate – a 101.6 percent increase in single-family permits.

On the other hand, New Hampshire saw the biggest percentage decrease, falling 43.1 percent, and all New England states north of Pennsylvania registered a drop in permits.

Meanwhile, Texas posted the highest actual number of permits issued this year to date at 10,119 in January 2018, followed by Florida with 7,300.

While permits may be on the rise in some markets, economists say that the new-home market still is underperforming nationally. A total of 1.2 million homes were constructed last year, which Lawrence Yun, chief economist of the National Association of Realtors®, recently called “vastly inadequate.”

The U.S. Department of Commerce recently reported that housing starts for combined multifamily and single-family homes dropped 7 percent in February month-over-month. However, permits for both single-family and multifamily homes jumped 12.7 percent month over month in the Northeast in February and by 3.4 percent in the Midwest. Permits however, declined by 12.4 percent in the South and by 3.4 percent in the West.

Source: “Permits Rise in January 2018,” National Association of Home Builders’ Eye on Housing blog (March 19, 2018)

© Copyright 2018 INFORMATION INC., Bethesda, MD (301) 215-4688

Fla.’s housing market continues positive track in Feb. 2018

ORLANDO, Fla. – March 21, 2018 – Florida’s housing market reported more closed sales, more new listings and higher median prices in February even as for-sale inventory remained tight, according to the latest housing data released by Florida Realtors®.

“Florida’s economy continues to grow, with more jobs being created – the state’s unemployment rate was 3.9% in January,” said 2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale. “A strong economy is good for Florida’s housing market. Statewide sales increased in both the existing single-family homes and the townhouse-condo sectors in February, yet many local markets are still facing a tight supply of available homes at a time when buyer demand is rising. Those factors are putting pressure on home prices and affordability.

“There is some good news for buyers: In February, new listings for single-family homes rose 6 percent year-over-year, while new townhouse-condo listings increased 6.9 percent.”

Sales of single-family homes statewide totaled 18,620 last month, up 3.3 percent compared to February 2017. Meanwhile, the statewide median sales price for single-family existing homes was $246,500, up 9.6 percent from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in January was $179,500, up 7.2 percent over the year-ago figure.

February marked 74 months-in-a-row that the statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors®(NAR), the national median sales price for existing single-family homes in January 2018 was $, up percent from the previous year; the national median existing condo price was $527,800; in Massachusetts, it was $369,000; in New York, it was in Maryland, it was $264,016.

Looking at Florida’s townhouse-condo market, statewide closed sales totaled 8,457 last month, up 6.4 percent compared to February 2017. Closed sales data reflected fewer short sales and foreclosures last month: Short sales for townhouse-condo properties declined 24.4 percent and foreclosures fell 51.8 percent year-to-year; short sales for single-family homes dropped 43.3 percent and foreclosures fell 51.3 percent year-to-year. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“The latest figures from Florida Realtors show sales of existing homes rose modestly in February, while sale prices continued to climb at a very brisk pace,” said Florida Realtors®Chief Economist Dr. Brad O’Connor.

February’s for-sale inventory remained tight with a 3.9-months’ supply for single-family homes and a 6-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.33 percent in February 2018, up from the 4.17 percent averaged during the same month a year earlier.

© 2018 Florida Realtors®

U.S. consumer confidence hits 18-year high

BOSTON – Feb. 27, 2018 – The Conference Board Consumer Confidence Index surged higher in February following a modest increase in January. The Index now stands at 130.8, up from 124.3 in January. 

The Present Situation Index increased from 154.7 to 162.4, while the Expectations Index that gauges attitudes about the economy six months from now improved from 104.0 last month to 109.7 this month.

“Consumer confidence improved to its highest level since 2000 after a modest increase in January,” says Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ assessment of current conditions was more favorable this month, with the labor force the main driver.

“Despite the recent stock market volatility, consumers expressed greater optimism about short-term prospects for business and labor market conditions, as well as their financial prospects. Overall, consumers remain quite confident that the economy will continue expanding at a strong pace in the months ahead.”

Current conditions
Consumers’ assessment of business conditions was moderately more positive than in January. The percentage saying business conditions are “good” increased slightly from 35.0 percent to 35.8 percent, while those saying business conditions are “bad” decreased from 13.0 percent to 10.8 percent.

Consumers’ assessment of the labor market was considerably more favorable. Those claiming jobs are “plentiful” increased from 37.2 percent to 39.4 percent, while those claiming jobs are “hard to get” decreased from 16.3 percent to 14.7 percent.

Short-term outlook
Consumers were also more optimistic about the short-term outlook in February. The percentage of consumers anticipating business conditions will improve over the next six months increased from 21.5 percent to 25.8 percent, while those thinking that business conditions will worsen decreased from 9.8 percent to 9.4 percent.

Consumers’ outlook for the job market was also more positive. The proportion expecting more jobs in the months ahead increased from 18.7 percent to 21.6 percent, while those anticipating fewer jobs declined from 12.5 percent to 11.9 percent.

Regarding their short-term income prospects, the percentage of consumers expecting an improvement increased from 20.6 percent to 23.8 percent, however, the proportion expecting a decrease also rose, from 7.9 percent to 8.6 percent.

The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was February 15.

© 2018 Florida Realtors®

NAR: U.S. home prices rose 5.3% in 4Q 2017

WASHINGTON – Feb. 13, 2018 – An uptick in existing-home sales in the last three months of 2017 pulled housing inventory down to an all-time low and kept home-price growth at its recent robust pace, according to the latest quarterly report by the National Association of Realtors® (NAR).

The national median existing single-family home price in the fourth quarter was $247,800, which is up 5.3 percent from the fourth quarter of 2016 ($235,400). The median price during last year’s third quarter climbed 5.6 percent from the third quarter of 2016.

Single-family home prices last quarter increased in 92 percent of measured markets, with 162 out of 177 metropolitan statistical areas1 (MSAs) showing sales price gains in the fourth quarter compared to a year ago.

Twenty-six metro areas (15 percent) saw double-digit increases (11 percent in the third quarter), and 18 metros eclipsed their previous peak sales price.

Overall, home prices are now at their all-time high in 114 markets (64 percent).

Lawrence Yun, NAR chief economist, says 2017 capped off another year where home prices in most markets ascended at a steady clip amidst improving sales and worsening inventory conditions.

“A majority of the country saw an upswing in buyer interest at the end of last year, which ultimately ended up putting even more strain on inventory levels and prices,” Yun says. “Remarkably, home prices have risen a cumulative 48 percent since 2011, yet during this same timeframe, incomes are up only 15 percent. In the West region, where very healthy labor markets are driving demand, the gap is even wider.”

Yun says the “consistent, multi-year price gains have certainly been great news for homeowners,” notably those who had negative equity during and after the recession. “However, the shortage of new homes being built over the past decade is really burdening local markets and making home buying less affordable.”

Total existing-home sales, including single family and condos, increased 4.3 percent to a seasonally adjusted annual rate of 5.62 million in the fourth quarter from 5.39 million in the third quarter. It was 1.3 percent higher than the 5.55 million pace during the fourth quarter of 2016.

At the end of the fourth quarter, there were 1.48 million existing homes available for sale, which was 10.3 percent below the 1.65 million homes for sale one year earlier. The average supply during the fourth quarter was 3.5 months – a drop from 4.2 months in the fourth quarter of 2016.

The national family median income rose to $74,4924 in the fourth quarter, but overall affordability still edged downward compared to a year ago because of the combination of rising mortgage rates and home prices. To purchase a single-family home at the national median price, a buyer making a 5 percent downpayment would need an income of $55,585, a 10 percent downpayment would require an income of $52,659, and $46,808 would be needed for a 20 percent downpayment.

“While tight supply is expected to keep home prices on an upward trajectory in most metro areas in 2018, both the uptick in mortgage rates and the impact of the new tax law on some high-cost markets could cause price growth to moderate nationally,” says Yun. “In areas where homebuilding has severely lagged job creation in recent years, it’s going to be a slow slog before there’s enough new construction to cool price appreciation to a pace that aligns more closely with incomes.”

The five most expensive housing markets in the fourth quarter were the San Jose, California metro area, where the median existing single-family price was $1,270,000; San Francisco-Oakland-Hayward, California, $920,000; Anaheim-Santa Ana-Irvine, California, $785,000; urban Honolulu, $760,600; and San Diego-Carlsbad, $610,000.

The five lowest-cost metro areas in the fourth quarter were Cumberland, Maryland, $84,600; Youngstown-Warren-Boardman, Ohio, $90,200; Decatur, Illinois, $100,000; Binghamton, New York, $108,900; and Wichita Falls, Texas, $110,400.

Metro area condominium and cooperative prices – covering changes in 61 metro areas – showed the national median existing-condo price was $237,500 in the fourth quarter, up 7.0 percent from the fourth quarter of 2016 ($222,000). Eighty-four percent of metro areas showed gains in their median condo price from a year ago.

Regional breakdown

Total existing-home sales in the Northeast jumped 10.1 percent in the fourth quarter but are 0.4 percent below the fourth quarter of 2016. The median existing single-family home price in the Northeast was $268,100 in the fourth quarter, up 4.2 percent from a year ago.

In the Midwest, existing-home sales rose 6.0 percent in the fourth quarter and are 2.3 percent above a year ago. The median existing single-family home price in the Midwest grew 7.2 percent to $193,800 in the fourth quarter from the same quarter a year ago.

Existing-home sales in the South increased 3.8 percent in the fourth quarter and are 1.8 percent higher than the fourth quarter of 2016. The median existing single-family home price in the South was $221,600 in the fourth quarter, 5.0 percent above a year earlier.

In the West, existing-home sales in the fourth quarter were at an annualized rate of 1.23 million (unchanged from the third quarter), up 0.3 percent from a year ago. The median existing single-family home price in the West increased 7.2 percent to $374,400 in the fourth quarter from the fourth quarter of 2016.

© 2018 Florida Realtors®

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Housing sentiment at new high on higher home price expectations

WASHINGTON –Feb. 7, 2018 – The Fannie Mae Home Purchase Sentiment Index® (HPSI) rose 3.7 points in January to 89.5, reversing the decrease seen last month and reaching a new all-time survey high. The rise can be attributed to increases in five of the six HPSI components. The HPSI is up 6.8 points compared with the same time last year.

The net share of respondents who said now is a good time to buy a home increased 3 percentage points to 27%, reversing some of December’s decline. Additionally, the net share who reported that now is a good time to sell a home increased 4 percentage points and is now up 23 percentage points year-over-year.

The net share who said home prices will go up in the next 12 months increased 8 percentage points in January, reaching a new survey high of 52%. The percentage who said home prices will go up reached a new survey high of 58%.

Meanwhile, Americans also expressed a greater sense of job security, with the net share who say they are not concerned about losing their job increasing 5 percentage points to 73%.

Finally, the net share of consumers who said mortgage rates will go down over the next 12 months increased 2 percentage points in January, while the net share reporting that their income is significantly higher than it was 12 months ago remained at 16% from December.

“HPSI rebounded from last month’s dip to a new survey high in January, in large part due to the spike in consumers’ net expectations that home prices will increase over the next year,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Results may continue to fluctuate over the coming months as consumers sort out the implications of the newly passed tax legislation on their household finances.

Over the past year, continued home price growth has helped spur a sizable increase in the net share of consumers who say it’s a good time to sell a home but also a modest weakening in the net share who say it is a good time to buy. At the start of 2018, it is still too early to determine the overall effect of the new tax legislation on housing, and we will need to see whether positive impacts on both housing demand and supply materialize in the coming months.’

The Home Purchase Sentiment Index distills information about consumers’ home purchase sentiment from Fannie Mae’s National Housing Survey® (NHS) into a single number. The HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and decision-making.

The January 2018 National Housing Survey was conducted between Jan. 2, 2018 and Jan. 25, 2018, polling about 1,000 Americans. Most of the data collection occurred during the first two weeks of this period. Interviews were conducted by PSB, in coordination with Fannie Mae.

© 2018 Florida Realtors®

Cash sales hit post-recession high

CHICAGO – Feb. 5, 2018 – Cash sales accounted for 8 percent of new-home sales in the fourth quarter of 2017, matching a high not seen since 2014, the National Association of Home Builders reports on its Eye on Housing blog.

Cash sales make up an even larger share of existing-home sales – about 20 percent in December, according to the National Association of Realtors®.

Cash hardly makes up the bulk of financing options for buyers, however, though the share of new homes financed with conventional mortgages dropped slightly from 73.2 percent to 72.7 percent.

In the fourth quarter of 2017, 12.9 percent of new-home buyers used FHA loans. The share of sales financed with FHA-backed mortgages has dropped 4 percentage points since reaching a peak in the second quarter of 2015.

“Different sources of financing serve distinct market segments, which is revealed in part by the median new-home price associated with each,” NAHB reports.

Split by types of financing, the median prices of new homes by loan type is:

  • Conventional loans: $347,800
  • FHA loans: $233,900
  • VA loans: $294,400
  • Cash: $349,300

Source: “Cash Sales Tie Post-Recession High,” National Association of Home Builders’ Eye on Housing blog (Jan. 26, 2018)

© Copyright 2018 INFORMATION INC., Bethesda, MD (301) 215-4688