Chilly Scenes of Winter: Home Sales, Builder Confidence Drop – NMP Skip to main content

Chilly Scenes of Winter: Home Sales, Builder Confidence Drop

Phil Hall
Feb 17, 2015

The first two months of 2015 seem to be a bit frosty, both in terms of weather across much of the country as well as in housing and home building data.

January’s home sales were 3.9 percent lower on a year-over-year basis, according to new data released by RE/MAX. For all homes sold in January, RE/MAX determined that the median sales price was $189,000–3.3 percent lower than the median price in December but 11.2 percent the January 2014 level. Last month marked the 36th consecutive month of median price increases.

RE/MAX identified price appreciation as the result of pressure from year-over-year inventory losses, with 48 out of 53 metro areas reporting higher sales prices than one year ago. Inventory supply has been down approximately 10 percent for the last three months.

Dave Liniger, CEO, chairman and co-founder of RE/MAX, insisted that these numbers should not be the cause of concern.

“One month certainly doesn’t make a trend,” Liniger said. “As we saw last year, home sales started rather slow, but rebounded during the prime selling months. In fact, 2014 ended with a respectable 4.9 million sales of existing homes, which we believe represents a sustainable rate of growth. So, we still need a few more months of data to tell how this market will perform in 2015.”

Separately, troublesome numbers were recorded in National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), which found builder confidence in the market for newly built, single-family homes in February down two points to a level of 55. Two of the three HMI components posted losses in February: The component gauging current sales conditions edged one point lower to 61 while the component measuring buyer traffic fell five points to 39. The gauge charting sales expectations in the next six months held steady at 60. Confidence was down in three of the four geographical regions mapped out by the NAHB, with only the West showing an increase in builder confidence.

Nonetheless, the NAHB insisted that everything was copasetic.

"For the past eight months, confidence levels have held in the mid- to upper 50s range, which is consistent with a modest, ongoing recovery," said NAHB Chief Economist David Crowe. "Solid job growth, affordable home prices and historically low mortgage rates should help unleash growing pent-up demand and keep the housing market moving forward in the year ahead."


Feb 17, 2015
Chairman Xu Sells Off Personal Assets To Avoid Default

The Evergrande saga continues as Chairman Xu Jiayin sells off 7 billion yuan ($1.1 billion) of his personal assets to prop up the deflating property giant.

Industry News
Nov 23, 2021
OptiFunder Secures $25 Million In Capital

OptiFunder, a warehouse management system provider for mortgage originators, raised $25 million in additional capital lead by Arthur Ventures, a growth capital firm focused on high-growth, founder-led and capital efficient B2B software companies.

Nov 23, 2021
Mortgage Company Donates $100K To High School In Memory Of Fallen U.S. Navy Corpsman

Cleveland-based CrossCountry Mortgage donated $100,000 to Milan Edison High School in memory of U.S. Navy Corpsman, Maxton W. Soviak, who died while assisting in the evacuation of Americans and refugees in Afghanistan in August.

Nov 23, 2021
MISMO Seeks To Standardize Pre-Closing Title Data

Forming workgroup to focus on standardizing document datasets to streamline process and increase efficiency.

Industry News
Nov 23, 2021
Pandemic's Impact On Real Estate Around The World

Although the impact of the COVID-19 pandemic on the real estate industry has been well-documented within the United States, it’d be prudent to know how the global event impacted other countries as well. 

Industry News
Nov 22, 2021
Housing Market Potential Strengthens Modestly

First American Financial Corporation's Potential Home Sales Model for October 2021 reported that potential existing-home sales increased 0.1% month-over-month to 6.27 million, with household formation continuing to grow, largely driven by millennials.

Analysis and Data
Nov 22, 2021