Existing Home Sales
Existing home sales, as reported by the National Association of Realtors (NAR), surged 14.7% in December, including an increase in the first-time buyer share to 32%, the highest share since August. December sales snapped back from a November decline partially attributable to delays in closings from the rollout of the Know Before You Owe mortgage disclosure rule by the Consumer Financial Protection Bureau (CFPB). The new rule was designed to help consumers understand their loan options and avoid closing cost surprises. Total existing home sales in December increased to a seasonally adjusted rate of 5.46 million units combined for single-family homes, townhomes, condominiums and co-ops, up from 4.76 million units in November. December existing sales were up 7.7% from the same period a year ago.
Existing sales increased in all regions, ranging from 8.7% in the Northeast to 23.2% in the West. Year-over-year, all regions increased, ranging from 4.6% in the South to 11.9% in the Northeast.
Total housing inventory decreased by 12.3% in December, and is 3.8% lower than its level a year ago. At the current sales rate, the December unsold inventory represents a 3.9-month supply, down from a 5.1-month supply in November. Some 32% of homes sold in December were on the market for less than a month.
Distressed sales are defined as foreclosures and short sales sold at deep discounts. The distressed sales share decreased to 8% in December from 9% in November. The December all-cash sales share decreased to 24% from 27% in November and 26% in December 2014. Individual investors purchased a 15% share in December, down from 16% in November and 17% a year ago.
The December median sales price of $224,100 was 7.6% above last December, and represents the 46th consecutive month of year-over-year increase. The median condominium/co-op price of $209,900 in December was up 4.9% from last December.
Although the Pending Home Sales Index fell slightly in November, the sharp volatility in November and December sales was a function of implementing a new regulation. Builder sentiment remains strong, and the tight inventory of existing homes bodes well for new single-family sales in 2016.
“This is a really good indicator that the real estate market is returning to normal levels. When existing home sales rise it stimulates sales of new homes, and it stimulates remodeling activity,” said Home Builders Association of Greenville President Joe Hoover, APB, of Hoover Custom Homes.
New Home Sales
Sales of newly built, single-family homes rose 14.5% to 501,000 units in 2015: the highest level since 2007, according to newly released data from the Department of Housing and Urban Development and the U.S. Census Bureau. Meanwhile, sales in December increased 10.8% to a seasonally adjusted annual rate of 544,000 from an upwardly revised November reading.
“The December sales report is a great end to a very strong year,” said National Association of Home Builders Chairman Ed Brady. “As we move forward in 2016, we should see the housing market continue to make lasting gains.”
“Relatively low interest rates and an improving economy are motivating buyers to make a new-home purchase,” said National Association of Home Builders Chief Economist David Crowe. “Builders are upping their inventory in response to heightened consumer interest. Housing inventory is now at its highest level since October 2009.”
Sales increased in all four regions in December. The Midwest, West, Northeast and South all posted respective gains of 31.6%, 21%, 20.85% and 0.4%.
The inventory of new homes for sale was 237,000 units in December, a 5.2-month supply at the current sales pace.
Combining the reports of increasing sales of existing and new homes points to an overall increase in the housing market. Considering recent history, those in the building industry should always be cautious, but these reports point to a strengthening economy.
After the nominations had been submitted, our 2016 Board of Directors were approved and elected at our Annual Membership Meeting earlier this month, with Joe Hoover leading as President. Thank you to our 2015 President Susan Peace-Vernon and the wonderful Board that accompanied her as they worked together on public policy initiatives, strengthening the Approved Professional Builder/Remodeler Program, and community service projects that directly assisted families in the Upstate. We are excited to see the 2016 Board work just as hard on improving our industry and association in the new year.
Newly Elected 2016 Board of Directors-Officers:
President, Joe Hoover, APB, Hoover Custom Construction
President Elect, Bob Barreto, GBS Building Supply
Vice President, James Speer, APB, Carson Speer Builders
Newly Elected 2016 Board of Directors-Members:
Ben Moseley, Heirloom Stair & Iron
Alan Wilson, Clark’s Termite and Pest Control
Matt Shouse, APB, LS Homes
Matt Ruth, APB, Mobius Construction
Thomas Dillard, APB, Dillard-Jones Builders
Bill Kane, APB, Ryan Homes
Continuing on the Board of Directors:
Associate Vice-President, Jon Statom, Palmetto Exterminators
Immediate Past President, Susan Peace-Vernon, APB, Dillard-Jones Builders
Treasurer, Chuck Childress, BB&T
Secretary, Scott Warren, APB, Dunn Custom Builders
|Immediate Past President|
Mike Freeman welcomes
Susan to the club.
Every year we take time to celebrate our past presidents for all of their hard work and dedication to improving the building industry. This year, we gathered on Tuesday for a luncheon at Larkin’s on the River where we celebrated with good food, old friends, and plenty of laughter. We thanked current HBA President Susan Peace-Vernon for the commitment and grace she showed during her year of presidency. In order to welcome incoming president Joe Hoover, all the past presidents stood and shared a piece of advice from their own experience to help Joe–many simply wished him luck for the long year ahead.
This is always a wonderful event where we hear about lesser-known pieces of HBA history and marvel at how much the association has grown. The holiday season is the perfect time to come together for food and friends, and that is certainly what happened. Thank you to all who attended and to all who have served your HBA as president.
|Current President Susan Peace-Vernon stands with|
incoming president Joe Hoover.
|Thank you to all of our past presidents (not all are pictured).|
HBA of Greenville Announces New President and Board of Directors
Greenville, SC – The Home Builders Association of Greenville announces the election of the Association’s 2012 Board of Directors and President, Hal Dillard of H. Dillard Company. All will be sworn in on January 19, 2012, at the association’s Membership Meeting and Awards Luncheon.
“Our local association is committed to assisting the community in finding businesses that are reputable, local, and qualified to service all of their home-related needs in upstate South Carolina,” said Dillard.
Newly Elected 2012 Board of Director:
President, Hal Dillard, H. Dillard Co., Inc.
President Elect, Robert Markel, CGR, Hadrian Construction Company
Vice President, Rick Quinn, Quinn-Satterfield
President’s Appointee, Lou Hutchings, GBS Building Supply
Director, Bob Barreto, GBS Building Supply
Director, Susan Vernon, Dillard-Jones Builders
Director, Seabrook Marchant, The Marchant Company
Director, Deana Long, Builders First Source
Director, Indu Vakharia, Unique Builders
Director, Joe Hoover, Ryan Homes
Continuing members of the 2012 Board of Director:
Associate Vice-President, Scott Presley, Greer State Bank
Past President, Wayne Moore, Harold Moore Builder
Treasurer, Chuck Childress, BB&T
Secretary, Scott Lynch, Hollison Custom Homes
Director, Chris Bailey, Stoneledge Properties
Director, Michael Cox, Home Builders Insurance
Director, Jim Blume, First Savers Bank
Director, Alan Boone, Advanced Renovations
Director, Mike Freeman, GMB, Freewood Builders
Director, Larry Hazenfield, ProBuild
“We are excited to end 2011 on a high note and begin gearing up for a successful new year,” said Michael Dey, Executive Vice President of the HBA of Greenville. “I am confident that our Board of Directors, with the leadership of Hal Dillard, will lead our organization toward achieving our goals.”
Dillard begins his term as President after a successful year as President-Elect and several years of serving diligently on the Board of Directors.