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California pending home sales posted higher for the third consecutive month in March, rising from both the previous month and year, the California Association of Realtors (C.A.R.) reported today. Additionally, the share of distressed sales dropped for the second consecutive month, as equity sales typically increase with the start of the spring home buying season.

C.A.R.’s Pending Home Sales Index (PHSI)* rose from a revised 126.5 in February to 143.7 in March, based on signed contracts. The March 2012 index was the highest since April 2009, when the PHSI was 146.9. The index also was up from the 128.9 index recorded in March 2011, marking the eleventh consecutive month that pending sales were higher than the previous year. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

Pending home sales:

Distressed housing market data:

• The share of equity sales – or non-distressed property sales – compared to total sales increased in March to 55.4, up from 51.1 percent in February. Equity sales made up 50.2 percent of all sales in March 2011.
• Meanwhile, the total share of all distressed property types sold statewide decreased in March to 44.6 percent, down from February’s 48.9 percent and from 49.8 percent in March 2011.
• The share of short sales was down again in March. Of the distressed properties sold statewide in March, 21.1 percent were short sales, down from February’s share of 23 percent but up from last March’s share of 20.1 percent.

The share of REO sales also declined in March to 23.1 percent, down from February’s 25.2 percent and down from the 29.4 percent recorded in March 2011.

Reported by Business Wire (04/24/2012)

On the national level, inventory of for-sale single family homes, condominiums, townhouses and co-ops declined by -21.48% in March 2012 compared to a year ago, and declined in one month in all but two of the 146 markets covered by Realtor.com.

The median age of the inventory fell 19.82% on a year-over-year basis last month and the median national list price was up by 5.56% last month compared to March 2011.

These positive indicators contrast with the situation at the beginning of the 2011 home buying season, when the median list price was down by 4.81% on an annual basis and the age of the inventory was up by 26.14%. If the market continues to hold its own, 2012 could well mark the beginning of a broad-based housing recovery.

The four markets with the largest year-over-year increase in median list price—Phoenix AZ, Miami FL, Boise City ID, and Punta Gorda FL—now appear to be into the recovery process. Markets that never experienced the dramatic run-up in housing values that preceded the housing crisis are now exhibiting some of the most persistent signs of weakness. These patterns suggest that the nature of the country's housing problems has fundamentally changed, and that conditions now primarily reflect weaknesses in the local economy.

Reported by Realtor.com (4/24/2012)

D.R. Horton Inc, the largest publicly traded homebuilder in the United States, reported stronger than-expected-earnings and a third straight quarterly jump in new home orders as the company continues to gain market share.

The company - which tends to focus on first-time home buyers - said the robust sales pace has continued through the first half of April.

The company also said it expects stronger closings and profitability in the second half of their fiscal year, which ends in September, helped by the fact that it is selling larger homes to customers that are looking to upgrade their current quarters.

"Someone flipped the switch on our buyers," said Chief Executive Donald Tomnitz on Monday's earnings conference call. Springtime for homebuilders is the equivalent of Christmas for retailers - prime selling season - and orders are closely tracked as a major clue as to the health of the housing market.

Horton's orders jumped 19 percent to 5,899 homes for the quarter ended March 31, a sharp contrast to the 23 percent decline in the year-ago period.

The cancellation rate during the quarter was 22 percent - close to its pre-downturn rate, the company said, indicating that fewer prospective buyers are backing out of sales and the new home market may be stabilizing.

"I think this will probably be as good as it gets from the builders," said Stephen East, an analyst with ISI Group. "Virtually every metric we looked at was solid."

In March, Lennar Corp, the third-largest U.S. homebuilder, also reported a sharp rise in new orders.

D.R. Horton's results come amid a string of recent data that has provided mixed signals about what has been a choppy, stop-and-go housing recovery.

Data on Thursday showed U.S. home resales fell in March but the supply of properties tightened and prices edged higher.

Consumers remain skittish as they face a shaky labor market, high gas prices and a volatile U.S. economy.

Johns Burns Real Estate consultants finds it is now cheaper to own than to rent in many U.S. markets, with mortgage rates near record lows and inventories near record highs. Still, studies show many first-time homebuyers are saddled with student debt and a big chunk of their paychecks are gobbled up by rent, so they are shut out of homebuying altogether.

CUSTOMER MIX CHANGING

On Monday's D.R. Horton earnings conference call, Chief Executive Donald Tomnitz pointed out that more of its home sales are drifting away from the company's traditional first-time home buyer towards the move-up buyer.

More than half of Horton's customers are first-time buyers, but the company said it is increasingly selling to clients looking to trade up from their current home, which pushed up the company's average sales price 7 percent to $222,700.

D.R. Horton's homes range from $90,000 starter townhouses to $600,000 custom Colonials.

Tomnitz pointed out that his company's results are not indicative of a robust housing recovery but rather of a market-share grab.

He also said that his sales agents are reporting that an increasing number of buyers are former homeowners who lost their homes to short sales and foreclosures and who are now coming back into the market.

The company may earn enough money this fiscal year to realize gains from deferred tax assets.

D.R. Horton is still working with first-time buyers - it has opened a Homebuying Club with credit counselors and financial planners to help debtors clean up their family balance sheets so they can one day own a D.R. Horton home.

Horton's net income rose to $40.6 million, or 13 cents per share, from $27.8 million, or 9 cents per share, a year ago.

Analysts expected earnings of 4 cents per share, according to Thomson Reuters I/B/E/S.

In the quarter ended December 31, it topped expectations with net income of 9 cents versus a mean estimate of net income of 5 cents per share.

The Fort Worth, Texas-based company's shares fell 2.7 percent to $14.96 in mid-day trading as the broader U.S. stock market fell.

Reported by Reuters (04/23/2012)

(Orlando, FL) -- The economic recovery now seems to have arrived behind the gates of America's master-planned communities. At least that's how it appears considering year-to-date 2012 home sales at top master-planned communities (MPCs) are the strongest in three years, up sharply over 2011, according to the latest report from Robert Charles & Lesser Co.

Each year since 1994, Robert Charles Lesser & Co. has conducted a national survey identifying the top-selling MPCs, followed by in-depth interviews among the top 20 to reveal the trends behind the numbers. Although RCLCO research shows that sales in 2011 were not universally stronger than in 2010, most MPCs report that year-to-date sales for 2012 are up substantially.

A majority of the communities are optimistic that this is a trend, not a blip, the latest RCLCO report says. Most of the top-selling MPCs report that in 2011 and early 2012 they are seeing a deeper buyer pool with better credit. Buyers that have been sitting on the sidelines for the past few years are feeling more secure about buying, and they're back in the market now that the future economic outlook seems a little clearer. Meanwhile, MPCs are also finding that they're competing with a lower volume of short sales and foreclosures in their projects compared with last year.

In 2010, sales were starting to improve, the study shows, but there was no confidence that a good month or two of sales indicated a trend. In 2011, the pattern of consistently improving sales became more pronounced, and 2012 has been even stronger.

In 2011, there was an even stronger flight to quality than in 2010, pushing MPC market share higher as both builders and consumers believed MPCs were safer places to invest in lots and homes. Now those buyers are showing up in greater numbers.

It's important to look at both the circumstances behind increased sales and the proactive strategies participants have employed to bolster their sales. Certainly the improving economy and job growth are major factors, according to RCLCO, with communities near job centers noting the correlation between their sales and employment growth in those areas.

However, through a series of interviews RCLCO identified key themes that have led to the success of the top-selling MPCs that are worth considering for MPCs that are still struggling to recover, as well as for future planned communities. Admittedly, some of the critical success factors (such as being a mature community) cannot be replicated by new MPCs, but many indicate what it takes to succeed in the current environment.

Reported by World Property Channel (04/02/2012)

At least five new builders including Ashton Woods, Lennar, Newmark Homes, Darling Homes and Village Builders will join the list building in a major Texas master-planned community as the developer announces a 700-acre expansion of the community.

Mischer Development, the developer of the master-planned community Cypress Creek Lakes, has announced plans for a major expansion to include 700 acres that will consist of new building programs, new builders, a recreation center complex and a community welcome/information center.

Located less than two miles from US 290 in the Cypress area, Cypress Creek Lakes, which first opened in 2004, will add a 50-foot and a 70-foot building program to its existing 60-foot and 80-foot programs that have been a part of the community since its beginning.

Currently, Perry Homes and Coventry Homes are building on 80-foot home sites in the active Phase 2. The next phase of Cypress Creek Lakes will include Ashton Woods and Lennar in a new 50-foot program, Perry Homes and Newmark Homes in a 60-foot program and Darling Homes and Village Builders in a 70-foot program. New homes will range in price from the $190,000s to the $600,000s. Phase 3 will add over 1,000 new homes to the community.

“The additional programs represent a growing demand we’re seeing among new-home buyers and will be a great complement to our existing building programs,” said Randy Corson,Vice President of Mischer Development.

Sales in Cypress Creek Lakes were even with projections in 2011, and to date, are already ahead of last year. Corson believes that recent improvements in the housing market and the completion of major roadway expansions make now an ideal time to open this newest phase of the community. “The expanded building programs will help us meet a significant part of the market that we were missing previously,” he said.

In addition to an increased interest among new-home buyers, Cypress Creek Lakes is benefiting from the expansion of Tuckerton Road which runs through the new Phase 3. Tuckerton is now a major east-west connector, open from Fry Road to Huffmeister, and is greatly enhancing access within the Hwy. 290 corridor. The expansion of Tuckerton will also provide opportunities for future commercial development in Cypress Creek Lakes. Already, Metropolitan Baptist Church, The MET, purchased 100 acres at the southeast corner of Fry Road and Tuckerton for its West Campus that will begin construction later this year.

Reported by Mischer Development Press Release