National Home Sales Hit Extraordinary Pace, Says NAR
Sales of existing single-family homes jumped to a surprisingly high mark in February, setting a record that surpassed even the most optimistic predictions for strong activity, the National Association of Realtors (NAR) reports today.

NAR reports a seasonally adjusted annual sales rate of 4.75 million homes nationwide in February -- up 8.7 percent from the revised pace of 4.37 million units sold in January. February's rate represents an increase of 13.1 percent from the rate of 4.2 million units recorded in February last year.

"The market is phenomenal. We had expected demand to stay strong, but this is exceptional," says NAR President R. Layne Morrill.

Morrill says housing affordability conditions are expected to remain favorable throughout the year, keeping activity steady in both the entry-level and trade-up segments of the market.

Freddie Mac reports the national average commitment rate for 30-year conventional, fixed-rate mortgages was 7.04 percent in February. This is up slightly from 6.99 percent in January but less than the 7.65 percent recorded in February 1997.

The national median price of an existing single-family home was $124,300 in February, 5.8 percent more than the $117,500 median in February last year.

Texas Licensees: More Diverse, Female and Older
While it is true that the total number of Texas real estate licensees is falling, that does not appear to be the case among minorities. Since 1994, the number of white licensees fell 7,688. However, the number of black licensees increased by 563. There are 546 more Hispanic licensees today than there were four years ago, and the number of Asian licensees has increased by 120.

Many more men have given up their Texas real estate license in the last four years than have women. There are 4,203 fewer men and 2,587 fewer women with licenses today than there were in 1994. In 1994, men outnumbered women. Today the situation is reverse.

Licensees are getting older. There are more licensees age 50 and older today than in 1994. There are fewer licensees in the younger age groups. The age group between 30 and 39 years old lost the most -- 5,845 -- in the last four years.

Total licensees
Black
White
Hispanic
Asian
Other
Salespersons
Brokers
Inactive
Women
Men
Women Salespersons
Men Salespersons
Women Brokers
Men Brokers
Inactive Women
Inactive Men
Licensees Under Age 30
Age 30-39
Age 40-49
Age 50-59
Age 60 or Older

109,772
3,921
97,038
5,861
2,438
513
42,987
39,365
27,420
54,998
54,773
25,419
17,567
12,963
26,402
16,616
10,804
3,970
15,604
29,011
33,506
27,681

117,236
3,358
104,726
5,315
2,318
530
44,371
41,573
31,292
57,585
58,976
25,321
18,905
13,895
27,558
18,369
12,513
5,086
21,449
34,202
31,312
25,187

-6.37%
16.77%
-7.34%
10.27%
5.18%
-3.21%
-3.12%
-5.31%
-12.37%
-4.49%
-7.13%
0.39%
-7.08%
-6.71%
-4.19%
-9.54%
-13.66%
-21.94%
-27.25%
-15.18%
7.01%
9.90%

Falling Interest Rates Boose Housing Affordability
College Station -- Texas homes became more affordable to a wider population because the interest rates charged on home mortgage loans at the end of 1997 was the lowest it has been in two years.

"The average rate on loans -- both fixed and adjustable -- closed in Texas during the last three months of 1997 was estimated to be 7.35 percent," says Jack C. Harris, a research economist for the Real Estate Center at Texas A&M University. "This rate compares to 7.6 percent paid one year ago and the most recent low point of 7.21 percent during the first quarter of 1996."

The Texas Housing Affordability Index, which indicates the adequacy of a median household income for purchasing a median-priced Texas home, rose to 1.48 in the fourth quarter.

"The index means that the median Texas income of $38,000 was 48 percent higher than the amount needed to qualify for a mortgage to purchase a home selling for the median price of $91,000 at prevailing market interest rates," says Harris.

Out of seven million Texas households, it is estimated that 66 percent can afford the median priced home, up from 63 percent last year.

"The improvement in the index was caused solely by the lower interest rate," says Harris. "Affordability appears to have stimulated sales, as the number of loans sold through Texas Multiple Listing Services for the quarter was 7 percent higher than the number during the fourth quarter of 1996."

Strong Economy Boots Real Estate
Washington DC -- Continued strong economic factors such as low unemployment and low interest rates boosted sales of existing homes in January, the National Association of Realtors reported today.

The association reported a seasonally adjusted sales rate of 4.4 million homes nationwide in January, up 0.7 percent from the revised pace of 4.37 million units reported sold in December. January's rate was an increase of 10.3 percent from the rate of 3.99 million units sold in the same month last year.

NAR President R. Layne Morrill said that housing affordability conditions are expected to remain favorable throughout the year, keeping demand steady in both the entry-level and trade-up markets.

"The outlook is promising," he said. "All the factors are in place -- a healthy economy, favorable mortgage rates and confident consumers."

Freddie Mac reported that the national average commitment rate of 30-year conventional, fixed-rate mortgages was 6.99 percent in January. This rate is down from 7.10 percent recorded in December and 7.82 percent posted in January a year ago.

Public hotel companies and REITs led the way in acquisition volume, while resorts commanded the highest price per room.

"It is significant that the average price per room jumped from $106,000 per room to almost $123,000 per room," said Stephen Rushmore, president of HVS International.

HVS defines a "major" hotel as a single-asset sale of more than $10 million or a package sale in which the purchase price for each individual property could be allocated to yield an individual property cost of more than $10 million.

For example, there is an increasing demand for two-story homes. This is especially true among first-time buyers.

Smaller lots are gaining buyer acceptance. In fact, the New American Home '98, built in conjunction with the home builders' meeting in Dallas last month, has only 20 feet of street frontage. The 4,873-square-foot house exemplifies innovative zero-lot-line design on a wedge-shaped lot.

In homes where entertaining is frequent, kitchens are a focal point. Today's popular kitchens include islands, space for multiple cooks, a visual connection with the family or media rooms and a big window over the sink. Walk-in pantries are increasingly in demand.

Here are some of the other emerging trends:
• Back-to-nature. Buyers prefer parks, walkways and gardens rather than fitness centers, tennis courts and pools.
• Media rooms -- a place for the stereo, home theater and computer games -- continue in popularity.
• As buyers age, the master bedroom on the ground floor is gaining importance.
• Higher ceilings -- at least nine feet-- are preferred.
• Many buyers are willing to accept a great room in lieu of separate family and living rooms.
• More buyers are asking for a "reading room." This can be part of a guest bedroom.