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Millennial homebuyers are not actively seeking

 

Good morning, Orlando!

Millennial homebuyers are not actively seeking to buy a house in Orlando, according to a new study by LendingTree.

In fact, out of the 100 cities ranked, Orlando came in at No. 80. See the data here.

Mortgage requests for buyers under 35 were analyzed between Feb. 1, 2017, and Feb. 1, 2018, then ranked alongside data about the average age of the buyer under 35, credit score, down payment and requested loan amount.

The study found cities in the Sun Belt like Las Vegas, Tuscon, Ariz., and five Florida cities as least popular, which could be because of their popularity instead with retirees, as well as high cost of living, according to LendingTree.

About one-third of mortgage requests through the company were from those 35 years old and younger.

And be sure to check out these other Monday headlines:

New project with shops, may be on tap for the area near SunRail station
A South Florida developer is eyeing 18 acres near the SunRail station in southwest Orlando for a possible mixed-use development. The project would include apartments, townhomes and a two-story office-and-retail building on Sand Lake Road and Orange Avenue. More here.

RESIDENTIAL REAL ESTATE
Images revealed of apartment buildings at Disney’s Flamingo Crossings
Rendering of the community center at Flamingo Crossings

Online mortgage lender expands into Florida, seeks to disrupt the industry
Lenda, an online mortgage company that claims it can close home loans 3.5 times faster than the industry average is expanding into Florida. Lenda uses a predictive algorithm, rather than going through human loan officers, to determine whether a borrower is creditworthy. More here.

N.C. food production biz considers adding 95 jobs in Melbourne
MG Foods Inc., a North Carolina-based food production, packaging, and distribution company, has applied for property tax breaks with Brevard County in order to expand its workforce by 95 jobs, Florida Today reports. More here.

How to get a piece of the work on the next phase of OIA’s new terminal
Orlando International Airport is looking for some help as it plans the next phase of its $2.15 billion expansion. The Orlando airport — the busiest airport in the state — is a huge driver of the area’s and the new south terminal will raise its capacity by 10 million passengers. More here.

Mortgage rates hold steady
Mortgage rates held steady this week, according to Freddie Mac. The 30-year fixed mortgage averaged 4.45% for the week ending March 22, essentially unchanged from 4.44% the previous week. Favorable mortgage rates have helped propel U.S. home sales and the refinance market.

And higher gas prices are on the way
Expect higher gas prices this week, AAA says. The Florida average has risen 10 of the past 12 days, climbing a total of 6 cents. You can expect prices to climb at least another 10 cents in the coming weeks. Gas prices in Orlando currently average $2.48 a gallon.

KPMG’s revamped plans for Lake Nona center

 

 

 

 

 

Good morning, Orlando!

New York-based audit giant KPMG LLP is revamping the plans for its 55-acre training center.

If you recall, KPMG received $3.8 million in economic development incentives for the training center project, including $3.5 million in tax rebates from Florida and the city of Orlando for a seven-year period and a $320,000 Qualified Target Industries tax refund through the state, which is expected to create 80 jobs by 2019.

More here on what KPMG is requesting approval from the city to change.

The new KPMG center is expected to boost the local by bringing thousands of employees into the market, creating new jobs at the facility and hundreds of third-party contract operator positions.

And be sure to check out these other Thursday headlines:

Hard Rock HQ’s Orlando departure to result in 184 layoffs

Orlando-based casino, hotel and restaurant operator Hard Rock International Inc. told the state via a Worker Adjustment and Retraining Notification notice, that it will lay off 184 workers starting in April through July. The company said the layoffs will be permanent. More here.

First look: Lake Nona teaching hospital plans reveal future expansion

The University of Central Florida and HCA Healthcare’s application for a new teaching hospital in Lake Nona gave a first look of the new facility and the medical spaces it will create. More here.

Orlando ‘Shark Tank’ star to roll out products in Walmart this month

Hummus king Jesse Wolfe has scored one his largest deals yet. His company O’Dang Hummus, featured on CNBC’s show “Shark Tank,” last summer struck a deal with Wal-Mart Stores Inc. (NYSE: WMT). And now, he will roll out his hummus salad dressing in 2,000 Walmart stores and neighborhood markets this month.

Ridership of Brightline — which eventually will extend to Central Florida — has exceeded expectations since the train began service between Fort Lauderdale and West Palm Beach, CEO Patrick Goddard told an audience at the Greater Miami Chamber of Commerce luncheon Wednesday. More here.

Florida House Speaker Corcoran says budget deal reached

House Speaker Richard Corcoran, R-Land O’ Lakes, indicated Wednesday afternoon that legislative leaders have reached agreement on a budget for the fiscal year that starts July 1. More here.

Disney opens StudioLAB to build VR, AI ‘entertainment experiences’

Walt Disney Studios is launching an initiative dedicated to virtual reality and artificial intelligence. StudioLAB will reimagine, design and prototype entertainment experiences and production capabilities to promote feature films, as well as music and stage plays.

More Than A High Appraisal

Homes appraised above contract price had above-market appreciation rates

Housing Trends

For homebuyers, the outcome of appraisal is one of these three scenarios: (1) appraised value closely matches sales price, (2) appraisal falls short of sales price or (3) appraisal is higher than sales price. If a home sells for less than its appraised value, does that mean that the buyers got ‘a bargain,’ and should anticipate above-average appreciation during their ownership period?  Conversely, if a home sells for more than its appraised value, does that mean the buyers may have ‘overpaid,’ and could expect a below-market rate of price growth during the length of time they own the home?

Evidence seems to support the hypothesis that there is “money left on the table” in high-appraisal transactions. When property price appreciation was calculated for twice turned-over in the California market – first sale observed with a full appraisal and sales closing price in 2010 or later, and then a second time with a sale by the owner – homes previously appraised with a sizable premium above the contract sales price were found to have above-market appreciation rates.

Yanling Mayer Blog Post

As shown in Figure 1, excess rates of price appreciation averaged about 3.3 percent per year.  By comparison, closely appraised homes appreciated at about the market average, while homes with appraised value below their contract sales price appreciated 0.3 percent per year slower than the market.  Excess appreciation rates were annualized price gains at re-sale—annualized percentage difference between prior purchase price and subsequent re-sale price, in excess of average market appreciation during the same ownership period.  The CoreLogic county-level Home Price Index (HPI) was used as the benchmark of market-wide appreciation.

Yanling Mayer Blog Post

Figure 2 shows that high-appraisal homes – whether a distressed sale or not – had above-market price appreciation, averaging 3.15 percent among non-distressed sales or 3.9 percent among distressed sales. Real estate owned (REO) and short sales exhibited above-market appreciation rates across all three appraisal valuation outcomes, likely driven by their below-market pricing to motivate sales.  Investors’ value-enhancing repair and refurbishing work could also be a factor for their higher re-sale values – despite that only homes that were held for at least 18 months since initial purchase/appraisal were included in the analysis.  For both non-distressed and distressed sales, median prices of high- and low-appraisal homes were lower than closely appraised homes. Since both high- and low-appraisal homes may have drawn disproportionately from lower-priced homes, faster price appreciation experienced by low-valued homes alone could not explain away the large disparities in price appreciation between the two.[1]

In Figure 3, sample homes were further sub-grouped by the year in which they were initially purchased and appraised. Given significant market dynamics during 2010-2015, property appreciation rates were likely to vary depending on the timing of initial purchase.  They ranged between 2 and 5 percent, reaching the highest during the 2012 market bottom when market-wide underpricing was likely the severest.

Yanling Mayer Blog Post

A city-level breakdown is shown in Figure 4. Stockton (5.87 percent) and Riverside (5.22 percent) had the highest excess price gains, followed by San Francisco (4.62 percent), Los Angeles (4.35 percent), Bakersfield (4.24 percent), and San Jose (4.04 percent).  Due to the use of county-wide HPIs for benchmarking, some cities – such as Oakland, Riverside and others – that may have experienced faster-rising prices than its county as a whole could well see across-the-board positive excess price appreciation.

Regardless of the reason(s) why a home may have sold for less than its appraised value, the buyers appear to have benefitted by having a faster-than-market appreciation during their ownership tenure.

Inventory Shortage at Crisis Levels in Nation’s Hottest Housing Markets

For-sale inventory is stuck at crisis levels in some of the nation’s hottest housing markets where home values are appreciating fastest. The number of homes for sale nationwide has declined on an annual basis for the past 35 straight months, and just 16.7 percent of a panel of housing expertsii surveyed in December 2017 expect a meaningful increase of home building in 2018, a sign that limited inventory could continue to drive the housing market this year.

 

“Tight inventory fueled by a tight labor market and low interest rates propelled home values to record heights in 2017, but the outlook is now much less certain,” said Zillow senior economist Aaron Terrazas. “Tax reform will put more money in the pocket of the typical buyer, but will limit some housing-specific deductions. Overall, this should increase demand for the most affordable and ease competition somewhat in the priciest market segments. On the supply side, the market is starving for new homes, but it won’t be easy for builders struggling with high and rising land, labor and lumber costs. Aging millennials and young families may be able to find more affordable new homes this year, but they’ll most likely be in further-flung suburbs with more grueling commutes to urban job centers.”

Lack of inventory, coupled with strong demand from home buyers, is one reason why home values across the country are reaching new peaks. The median U.S. home value rose 6.5 percent over the past year to $206,300, the highest it has ever been.

 

7 things to know today and Orlando moves up on best-performing cities list

Good morning, !

Metro Orlando jumped up two places in an annual ranking released Wednesday by California-based Milken Institute that measures economic growth.

The City Beautiful came in at No. 7 on the institute’s list of the top 200 large U.S. metro areas — up from No. 9 last year.

The only other Florida metro to best us was North Port-Sarasota-Bradenton, which saw a huge leap from No. 26 last year to No. 6 this year.

Milken Institute’s index looks at how well the country’s metro areas create and sustain jobs as well as each’s economic growth. Published since 1999, the index looks at nine metrics to evaluate the growth of a metro area, including changes in jobs, wages and salaries in addition to technology output.

Milken Institute said its results can be used as an “objective benchmark for examining the underlying factors and identifying unique characteristics of economic growth in metropolitan areas.”

See the full rankings here.

And be sure to check out these other Thursday headlines:

$89M downtown Orlando luxury apartment tower to break ground in Q2

Another high-end apartment complex soon will dot Orlando’s skyline near Lake Eola, joining a roster of projects such as the under- Modera at Mills Creek and Aspire. More here on the 300,000-square-foot project.

Johnson & Johnson changes hiring plan for regional HQ in Lake Nona

Here are five Walt Disney World projects to follow in 2018

2018 of Sports

Jan. 19

Disney Springs lands among NY Times’ top 52 places to visit in 2018

Disney Springs is among several U.S. spots on a newly released New York Times list of the 52 Places to Go in 2018. The list was selected based on suggestions from regular contributors to the Times’ Travel section that are then narrowed down based on why 2018 is the time to visit a particular place.

12 tech firms hiring 300 Central Florida workers

Attention all job seekers: Video game, data analytics, IT and rocket firms all have high-wage, high-tech jobs available — some paying more than $77,000 a year. To see a quick lineup of which firm firms are hiring, how many positions are available and a few of the job titles, click here.

Feds drop plan to allow drilling off Florida coast

Florida waters were removed Tuesday from White House plansto open previously protected parts of the Atlantic Ocean and eastern Gulf of Mexico to offshore oil and gas drilling. The move spurred questions about whether the quick decision and manner of announcement by the Trump administration were done to further Scott’s political career.

Coca-Cola launches Diet Coke ‘brand rejuvenation,’ adds 4 new ‘bold’ flavors

The Coca-Cola Co. (NYSE: KO) said Wednesday that it was re-launching the 35-year-old Diet Coke with a “bold new look, a fresh attitude” and four new flavors: Diet Coke Ginger Lime, Diet Coke Feisty Cherry, Diet Coke Zesty Blood Orange and Diet Coke Twisted Mango. The all new packaging and flavors hit store shelves this month. More here.

Sears will consider ‘all other options’ after dismal holiday season

Sears and Kmart store sales plummeted almost 17% during the holiday season as it considers “all other options” to stay in business. The company plans on renegotiating $1 billion in debt by extending due-date on some loans and altering terms on other loans. The retailer said it expects to return to profitability this year. More here.

7 things to know today and 8 financial predictions for 2018

Good morning, !

We’re nearing the end of a very eventful 2017, and as a way to get you ready for the months to come, WalletHub surveyed more than a dozen economics experts, analyzed big-bank projections and Federal Reserve forecasts, and produced a list of financial predictions for 2018:

  • U.S. GDP growth will remain near 2.5%.
  • Unemployment will crack 4%.
  • The S&P 500 will top 2,900 and finish at 2,838.
  • The Fed will raise rates three times, costing borrowers billions.
  • Credit card debt will break all-time records, topping $1 trillion owed.
  • Consumer credit scores will peak in 2018.
  • U.S. auto sales will top 17 million for the fourth straight year.
  • Existing home sales will again top 5 million, despite higher rates.

Want to know more about what the panel of economists sees ahead for next year. You can read the full report here.

And be sure to check out these other Tuesday headlines:

Brightline gets final OK from feds for Orlando-West Palm Beach segment

The long-awaited Orlando-to-Miami intercity passenger train got the final federal go-ahead to build the rail project between West Palm Beach and Orlando, with starting in first-quarter 2018. The Phase 2 segment to Orlando will take 30 months of construction, setting it up for a 2020 operating date.

Adventist Health System buys Lake Nona land for $9M

Adventist Health System, parent of Hospital, just bought more land in southeast Orlando’s Lake Nona community that potentially could be used for several medical purposes, including a freestanding emergency department and/or an outpatient surgery center. More here.

One of Orlando’s largest banks sells to North Carolina bank

HomeBancorp Inchas signed a definitive merger agreement with First Citizens Bank & Trust Co. First Citizens, headquartered in Raleigh, N.C., will pay $15.03 in cash for each share of HomeBancorp stock. The deal gives First Citizens (Nasdaq: FCNCA), two new markets — Orlando and Tampa.

Foundry Commercial to embark on third industrial park in Charlotte region

Orlando-based Foundry Commercial is expanding its development footprint in the Charlotte, N.C., region with a third industrial park, this time in Huntersville. In a joint venture with PGIM Real Estate, Foundry will initially develop three light industrial buildings on a 48-acre site at Bryton Town Center. At full buildout, the park, Bryton Commerce Center, will total six buildings and 700,000 square feet. More here.

Delta testing facial recognition project

Delta Air Lines (NYSE: DAL) — the second-largest carrier at Orlando International Airport — and U.S. Customs & Border Protection are launching a test project at Hartsfield-Jackson Atlanta International Airport this week that will allow travelers to board flight DL82 from Atlanta to Paris through facial recognition. The airline said it plans to expand the test to multiple daily flights. More here.

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Woohoo? We’re the No. 2 most-spoofed area code in the U.S.

Well, this is not a list we wanted to be on: Orlando’s 407 was the second-most-spoofed area code in 2017, trailing only Atlanta’s 404 area code, according to Hiya. In fact, unwanted calls to U.S. consumers overall have increased by a whopping 76% in 2017, up from over 10 billion last year.

Orlando tenants feel pinch of rent spikes

Metro Orlando rents spiked by as much as 15 percent during a year-long period when rents nationally declined, making Central Florida less affordable than some California markets, including Sacramento, a new report shows.

The biggest jump in rental rates hit smaller units. An influx of new complexes filled with one-bedroom units pushed up the average rental on those apartments by 15 percent from a year ago and 5 percent from a month earlier, reaching an average $1,170, according to research released Tuesday by the analytics firm Zumper. Household income in Metro rose 1.2 percent during that period, the federal government reported.

Rosalinda Hernandez, 60, works as a bill collector and lives with her mother in the east Orlando area. She said she keeps a close watch on the apartment market and finds no property managers offering discounts.

“If you don’t have someone to live with, you can’t make it,” she said.

For landlords, the region has been identified as a standout for its rising rents.

Brian Alford, market economist for the CoStar Group, said Orlando’s annual rent growth is one of the best in the nation. The four-county area had fourth highest year-over-year rent gains among the nation’s top 54 metro areas, he said.

“Orlando has seen rent growth across both luxury and workforce housing, which is not the norm,” he said.

The boost in prices repositions the Metro Orlando area from a region considered affordable to one where renters have to search harder to find deals. Apartments with two bedrooms rose at about half the rate of one-bedroom rentals and averaged $1,290 in October.Universal Orlando announces two new hotels

While rents in Orange, Seminole, Osceola and Lake counties rose by double-digit amounts from a year earlier, rents nationally declined by about 1 percent.

The Orlando area’s rent hikes come even as thousands of new units are rolling onto the market with 4,500 new apartments added in October, according to ALN Apartment Data.

Within the region, Clermont appeared to have one of the lower occupancy rates with less than 90 percent of units filled while the Eustis/Leesburg and DeLand areas appeared to have a shortage of rentals with virtually no units available in September, ALN reported. In the University of Central Florida area, east Orlando and Oviedo had an occupancy rate of 94 percent.

Tenants renting houses in the Orlando region did not escape the spike with those rents rising more than 4 percent in September, which was higher than the increases of 3.5 percent nationally, according to Morningstar. Higher rents don’t seem to be scaring away tenants with vacancy rates of 4.8 percent in September, which was down slightly from a year earlier. Nationally, vacancy rates for rental houses were 5.9 percent.

Looking ahead, conditions are unlikely to improve for renters with an influx of prospective renters following hurricanes, said Ryan Coon, an author who writes on landlord issues..

“We’re continuing the see rents climb in Orlando, especially as the housing market remains tight post-Irma,” Coon said. “This trend bodes well for landlords looking to invest in the area.”

 

How Irma will affect real estate market

Like it did to everything else in Northeast Florida, Hurricane Irma dealt a significant impact to the residential real estate market.

But, like much else, it will come back, according to real estate professionals who’ve weathered the storms for years.

Bill Watson, founder and chairman of Watson Realty Corp., said the local effects of the hurricane began Sept. 8 for his 1,600 employees in 43 offices in North and Central Florida and South Georgia. That was two days before the storm made landfall in the Florida Keys.

“The first phase is when the hurricane warning comes. When the schools close, that affects your workforce,” he said.

Most Realtors are independent contractors and when schools are closed by an approaching storm, they take care of their children and families, Watson said.

After Irma, it was time to assess the damage on the personal and corporate levels and return to work. For many, that began about 12 hours after the storm left the area.

“We reopened Tuesday at noon. Two agents took clients to see houses and we also closed two contracts on Wednesday,” said Sherry Davidson, co-founder of Davidson Realty, which has offices in Jacksonville Beach and St. Augustine.

Linda Sherrer, CEO and president of Berkshire Hathaway Home Services Florida Network Realty, said five of her firm’s eight offices opened Tuesday, followed by the other three on Wednesday when power was restored to those locations.

The first step was to determine if properties had been damaged.

“Our agents started calling all of their listings and all of their buyers,” Sherrer said.

The post-storm phase brings its own challenges that involve title companies and lenders.

Unless a contract was executed, lenders won’t fund the loan until the home is inspected to determine whether the property was damaged. That will probably mean adding about a week or 10 days to the process, Davidson said.

Watson said damage to a property that’s under contract doesn’t necessarily void a sale, provided repairs can be completed within a set time.

“You have 10 days to determine whether the damage is minor and if so, the seller has to notify the buyer,” he said. “If the damage is minor, the seller has 30 days to repair it.”

If the damage is more than what’s considered minor — about 3 percent of the value — the buyer has the option to continue to closing or walk away from the contract, Watson said.

After the initial disruption, the market will return to its previous level, said Sherrer, who has been selling real estate in Northeast Florida through good weather and bad since 1979.

“We’ve got low inventory and low interest rates and demand is very strong. That points to a strong rebound,” she said.

The number of that were damaged will make the untouched properties increase in value.

“If you have an undamaged house that’s ready to move in, you’ll be able to bump up the price. There are still plenty of buyers, but not as much inventory,” Watson said.

He also said Hurricane Irma probably will change the market for the next several months.

“We’ll never get the September business back. And it probably won’t be really back in October, but November and December will be better than they should have been.”

A key Fed official just admitted the central bank got inflation wrong and so it may delay a hike

Fed unlikely to hike rates this year: Clearnomic's James Liu

Fed unlikely to hike rates this year: Clearnomics’ James Liu  

The Federal Reserve appears ready to accept that its inflation assessments have been wrong, indicating an important shift in how it will approach rate hikes ahead.

In a speech Tuesday, Fed Governor Lael Brainard said the long-standing assessment at the central bank that persistently low inflation is the result of transitory factors that eventually will pass does not add up considering current circumstances.

As a result, she said, policymakers should reconsider the current path they expect for future rate hikes.

“I am concerned that the recent low readings for inflation may be driven by depressed underlying inflation, which would imply a more persistent shortfall in inflation from our objective,” Brainard told the Economic Club in New York. “In that case, it would be prudent to raise the federal funds rate more gradually.”

Brainard’s comments are important because she is considered a close ideological ally of Fed Chair Janet Yellen. While Yellen herself has indicated that the end of the rate-hiking cycle could be near, she and her fellow Federal Open Market Committee members have stood by the belief that inflation ultimately will gravitate toward their 2 percent target.

Tuesday’s speech challenges that notion.

Specifically, Brainard pointed to the current low unemployment rate — 4.4 percent — and compared it to the last time the was around “full employment” from 2004 to 2007. During that run, inflation averaged about 2.2 percent. Currently, the three-year average is 1.5 percent.

Brainard acknowledged that certain factors driving down inflation, such as a drop in cellphone rates, are transitory. But she said there also are temporary factors pushing up inflation, such as a rise in prescription drug prices.

Lael Brainard, Federal Reserve Governor

Andrew Harrer | Bloomberg | Getty Images
Lael Brainard, Federal Reserve Governor

“What is troubling is five straight years in which inflation fell short of our target despite a sharp improvement in resource utilization,” she said.

At the core could be a general drop in “underlying” or long-term trend inflation that is feeding on itself and keeping the rate low, simply because that is what consumers have come to expect. Economists have long accepted the notion that inflation can stay high or low simply because of public perceptions.

“Households and firms have experienced a prolonged period of inflation below our objective, and that may be affecting their perception of underlying inflation,” Brainard said. “In short, frequent or extended periods of low inflation run the risk of pulling down private-sector inflation expectations.”

The Fed has hiked its benchmark rate four times since December 2015 and was on target for one more before year’s end. Traders in the fed funds futures market, though, have shifted expectations and now don’t expect the next rate hike until at least June.

Brainard said the Fed should follow through on its intentions to begin reducing its $4.5 trillion balance sheet of bonds that it acquired mostly during stimulus efforts that started during the financial crisis.

But she believes it should tread carefully when it comes to future rate hikes.

If her sentiments reflect the majority of FOMC members, the shift could pull the Fed away from the majority’s preference for slow but steady rate hikes and more toward the sentiment expressed by Minneapolis Fed President Neel Kashkari and some economists who believe rate hikes should wait until inflation becomes more pronounced.

In fact, Brainard said the Fed should consider letting inflation run “modestly above” the 2 percent goal before hiking again.

“I will be looking closely at the evolution of inflation before making a determination about further adjustments to the federal funds rate,” she said. “We have been falling short of our inflation objective not just in the past year, but over a longer period as well. My own view is that we should be cautious about tightening policy further until we are confident inflation is on track to achieve our target.”

Home sales drop—again—and will continue ‘unless supply miraculously improves’

House . Real Estate Sign in Front of a House.

After a brief improvement in June, home sales continued their downward slide in July, with buyers signing fewer contracts to purchase existing .

An index of so-called pending home sales, which represent closings one to two months from now, fell 0.8 percent compared with June, according to the National Association of Realtors. That is the fourth monthly drop in the past five months. June’s reading was also revised lower. The index is now 1.3 percent below a year ago and has fallen on an annual basis in three of the past four months.

“Buyer traffic continues to be higher than a year ago, the typical listing has gone under contract within a month since April,” said Lawrence Yun, chief economist for the Realtors. “The reality, therefore, is that sales in coming months will not break out unless supply miraculously improves. This seems unlikely given the inadequate pace of housing starts in recent months and the lack of interest from real estate investors looking to sell.”

 The supply of homes for sale at the end of July came in at 2.11 million, 9 percent lower than a year ago. That has fallen year over year for 26 consecutive months.

The housing market remains stuck in a holding pattern with little signs of breaking through. The pace of new listings is not catching up with what’s being sold at an astonishingly fast pace,” Yun added.

Closed sales to buy existing homes fell more than expected in July, with Realtors citing the lack of supply as the primary reason. Prices are also a factor though. The median price of a home sold in July hit $258,300, the highest July price on record. Mortgage rates have been falling through the summer and are now sitting at 2017 lows, but they are still slightly higher than one year ago. Rates have been so low for so long that they provide little relief from the fast-rising prices.

California, which boasts the priciest and tightest in the nation, saw sales slip across the board in July. The number of homes for sale fell yet again and prices hit decade highs.

“The San Francisco Bay Area posted modest year-over-year gains in home sales this May and June, but a tight inventory and waning affordability have taken a toll, and July 2017 sales fell to the lowest level for a July in six years,” said Andrew LePage, research analyst at CoreLogic.

Pending home sales in the Northeast fell 0.3 percent for the month and were 2.4 percent above a year ago. In the Midwest, sales decreased 0.7 percent for the month and were 2.8 percent lower than July 2016. In the South, sales declined 1.7 percent from June and were 0.2 percent below last July. In the West, sales rose 0.6 percent for the month but were 4.0 percent below a year ago.

Yun noted that national sales numbers could weaken more than expected this fall, due to the disruption in the Houston housing market from Hurricane Harvey.