July 2015 Newsletter
Summer is at it’s peak. It’s a great time to be outdoors up north, but the time is quickly fleeting. It’s a great time to search for a retirement destination with a longer season of warm weather. It’s time to schedule your visit to a potential retirement destination. Have you done your research? No need! AARC has done it for you! AARC is your source for the best in retirement destinations. Whether it’s a planned retirement community or just a great town that welcomes retirees, AARC’s got you covered. I hope you’ll take to time to learn about our Seal of Approval communities here. We hope to see you soon!
I hope you’ll take to time to learn about our upcoming annual conference in Charleston, SC November 11th – 13th – Click to learn more
Jeff Fleming Chair, The AARC
August 20th Webinar – Boost Your Generational IQ, Boost Your Economic Impact
Baby Boomers are turning 65 at a rate of 10,000 a day according to Pew Research. Savvy communities are investing time and resources to understand how to attract this large generation (80-million strong) to retire in their area. The economic potential is profound… but could understanding other generational trends reveal an even greater opportunity to leverage?
What if some of the qualities Baby Boomers are looking for in retirement are similar to those that their kids and grandkids, the Millennials, are seeking as they launch their careers? Could some of the same development strategies that inspire Boomers to plant roots in your community attract young professionals, the lifeblood of your future, too?
In this webinar, generational speaker and author Jessica Stollings will explore these possibilities. She will introduce you to the generations in American society and take a look at the values, perspectives, spending habits and ideals that influence their behaviors. She will also share ideas to thoughtfully engage America’s two largest generations- Baby Boomers and Millennials- in your local community, organizations, and causes.
Jessica Stollings is a speaker, author, blogger, and the President of ReGenerations- an organization that helps connect generations to build a better future. Often called a “generational translator,” her passion (besides coffee) is making sure there is clear understanding and communication between the newest batch of college graduates and the generation of parents and grandparents that went before them. Management teams, pastors, policy groups and educators across the country have built solutions around her ideas. To learn more, visit www.re-generations.org.
Click To Learn More or Sign Up – Click Here
Single Family Home Prices Rising Slower Than Condos, But It’s All Up, Up, Up
Lisa Selin Davis / Realtor.com – July 22, 2015
And you thought the numbers were high last month! Existing-home sales in June surpassed the high in 2006, and the median sale price hit an all-time high, according to data released by the National Association of Realtors on Wednesday.
“All major regions experienced sales gains in June and have now risen above year-over-year levels for six consecutive months,” the NAR said in its release.
The sales of single-family homes, townhomes, condominiums, and co-ops rose 3.2% in June, to a seasonally adjusted annual rate of 5.49 million; in May, the number was 5.32 million and last June it was 5.01 million.
Perhaps you should jump on the condo and co-op train—and quick. Their sales rose 6.6%, more than the 2.8% of single-family homes, but they were still cheaper. The median price for existing condos was $226,500 in June, 5.5% above last year, and the highest since August 2007, when it was $229,200. The median price for existing single-family homes was $237,700, a 6.6% rise from June 2014, and higher even than the peak median sale price in July 2006—$230,900.
Part of the frenzy comes from steady job growth and an uplifted economy, says NAR chief economist Lawrence Yun. “Buyers have come back in force,” he said. Our own chief economist, Johnathan Smoke, notes another difference: the kinds of buyers.
“We’ve now surpassed the strong level of activity in 2013 that was investor-driven and composed of 90% more distressed sales than exists today,” Smoke said. “This is therefore the biggest and healthiest year for existing-home sales since 2006, when speculation was rampant.”
At $236,400, the median existing-home price in June for all housing types was 6.5% above June 2014, surpassing the high of $230,400 in July 2006. The number, NAR writes, “marks the 40thconsecutive month of year-over-year gains.” And NAR’s not the only organization reporting an uptick in numbers. The Federal Housing Finance Agency’s monthly House Price Index rose 0.4% in May.
The reason? You guessed it. Good old supply (low) and demand (high); housing inventory in June rose only 0.9%, to 2.3 million existing homes for sale. All-cash sales are down, too, from 24% in May to 22% in June.
We know what it all means for buyers in the hotter home markets, but there are plenty of affordable markets in which to search. Time to tool around in those areas, said Smoke.
“People may need to consider different markets or different areas to find affordability, or they may need to make key trade-offs,” he says.
You might have to give up your hopes of a specific size of home or its location, whether it’s old or new, attached or single-family. But, said Smoke, if you weigh your options, you might not have to give up completely on the American dream.
Northeast: 4.3% increase to the annual rate of 720,000, 12.5% above last year. The median price was $281,200, 3.9% higher than June 2014.
Midwest: 4.7% increase to the annual rate of 1.33 million in June, 12.7% above last year. The median price was $190,000, 7.2% higher than June 2014.
South: 2.3% increase to the annual rate of 2.20 million in June, 7.3% above last year. The median price was $205,000, 7.2% higher than June 2014.
West: 2.5% increase to the annual rate of 1.24 million in June, 8.8% above last year. The median price was $328,900, 9.9% above June 2014.
Are More New Homes on The Horizon? The Commerce Department Says Yes
Lisa Selin Davis/Realtor.com – July 17, 2015
We need more inventory. That would be the easiest solution to our nation’s high-priced housing problem. So the news from the Commerce Department on Friday morning is sounding good: In June 2015, privately owned housing starts rose 9.8% above May’s numbers.
“An increasing level of new construction is the primary way that the housing market will find balance in this surging demand but tight supply environment,” says our chief economist Jonathan Smoke.
While the report covers permits, starts, and completions, we shouldn’t put too much faith in the numbers, says Smoke.
“The measures are based on a survey of local jurisdictions and have been prone to wide fluctuations month to month since the downturn began,” Smoke says. “As a result, it’s often important to compare the monthly change to the relative standard errors reported with the data. In many cases the monthly changes do not prove to be statistically significant, and that’s again the case with the June starts data in this report.”
Also: Activity in May was a mixed bag, says Smoke. Permits were up 12% but starts were down 5% from April. One reason: a very wet May. “It’s it’s hard to break ground when it’s under water,” says Smoke.
Builders should feel pretty confident about breaking ground now, with home prices and rents rising so quickly and so high.
So what’s getting built? Not what you’d necessarily expect. “Single-family decreased 1% while multifamily increased 29%,” says Smoke. “I have more faith in the totals than the breakdown of single-family and multifamily. The single-family starts numbers have been revised up this spring, and I expect that this June number will be revised as well.”
Feeling a bit confused? Not to worry. Though the bipolar numbers may be a little hard to follow, we can trust the bottom line: More housing is on the way.